PSC-20-14-00011-P Petitioners Request an Order Approving Enhanced Benefits Under the Renewable Portfolio Standard Program

5/21/14 N.Y. St. Reg. PSC-20-14-00011-P

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 20

May 21, 2014

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-20-14-00011-P

Petitioners Request an Order Approving Enhanced Benefits Under the Renewable Portfolio Standard Program

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

The Commission is considering a petition filed by Sterling Energy Group, Inc., and Niagara Generation, LLC, for enhanced Renewable Portfolio Standard Program benefits for a 51 MW biomass fueled electric generating facility in Niagara Falls, New York.

Statutory authority:

Public Service Law, sections 4(1), 5(2) and 66(1)

Subject:

Petitioners request an order approving enhanced benefits under the Renewable Portfolio Standard Program.

Purpose:

To enable continued operation of a 51 MW biomass fueled electric generating facility in Niagara Falls, New York.

Substance of proposed rule:

The Commission is considering whether to adopt, modify, or reject, in whole or in part, the proposals set forth in a petition dated May 5, 2014, filed by Sterling Energy Group, Inc., and Niagara Generation, LLC. The petition seeks an order granting enhanced benefits under the Renewable Portfolio Standard (RPS) Program as necessary to allow the continued operation of a 51 MW biomass-fueled electric generating facility located in Niagara Falls, New York. Petitioners ask that the Commission take expedited action to supplement the benefits available under the current Main Tier RPS Program to provide the sound financial basis required for the continued operation of this facility as a biomass resource. Petitioners assert that continued operation of the facility will serve the public interest by providing needed renewable energy, jobs, and local investment in Western New York.

The Commission is considering the explicit relief requested within the petition and other related issues raised in the petition. The Commission could provide such enhanced RPS benefits either by restructuring an existing ten-year RPS Main Tier Agreement, or by establishing a new program of supplemental benefits for biomass facilities similar to the Maintenance Tier that the Commission established for renewable energy resources already in existence when the RPS program was first adopted. Petitioners are willing to open their books to review by Commission personnel, as is required for projects seeking to participate in the Maintenance Tier. In addition, Petitioners are willing to restructure or terminate the existing ten-year RPS Main Tier Agreement as part of any new program that would avoid the need to sell the Facility for scrap, including the conversion of the fixed payments for Renewable Energy Credits established in that agreement to a contract for differences formula. Petitioners are also willing to enter into reasonable commitments concerning employment, capital improvements to the Facility, and further increases in the use by the Facility of clean wood biomass fuel as a part of any such contract restructuring.

Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:

Deborah Swatling, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(03-E-0188SP48)