PSC-22-09-00008-P Authorization of a $95 Million RPS Main Tier Procurement

6/3/09 N.Y. St. Reg. PSC-22-09-00008-P

NEW YORK STATE REGISTER

VOLUME XXXI, ISSUE 22

June 03, 2009

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-22-09-00008-P

Authorization of a $95 Million RPS Main Tier Procurement

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 whether to authorize a 2009 Renewable Portfolio Standard (RPS) program Main Tier procurement solicitation by NYSERDA utilizing up to $95 million of RPS program funds, and pertinent design details and methodologies.

Statutory authority:

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

Subject:

Authorization of a $95 million RPS Main Tier procurement.

Purpose:

To encourage the deployment of renewable electric generation resources.

Substance of proposed rule:

The Commission is considering whether to authorize a 2009 Renewable Portfolio Standard (RPS) program Main Tier procurement solicitation (2009 Solicitation) by the New York State Energy Research and Development Authority (NYSERDA) utilizing up to $95 million of RPS program funds, and whether to adopt, modify, or reject, in whole or in part, specific design details and methodologies pertinent to such a 2009 Solicitation. In general, the 2009 Solicitation would follow the design details and methodologies already established by Commission orders in Case 03-E-0188. However, to leverage funds available through the American Recovery and Reinvestment Act of 2009 (ARRA), for the 2009 Solicitation the Commission is considering the Design Details and Methodologies Changes set forth below that differ from past solicitations. These changes pertain to the 2009 Solicitation and are not indicative of potential future procurement rules.

Design Details and Methodologies Changes:

1. Proposals will be requested using a sealed, "pay-as-bid" auction procedure. A price will be determined above which bids will not be considered, but such price will not be revealed to bidders.

2. Contracts will be awarded for a ten year term, except that fuel-based bid facilities may bid any whole number of contract years from three to ten. A fuel-based bid facility receiving an RPS contract for less than ten years will be permitted to bid in subsequent RPS solicitations; however the cumulative terms of RPS contracts for such fuel-based bid facility may not exceed ten years.

3. The selection of winning bids will primarily be based on a weighted combined score with price comprising 70% and projected incremental economic development benefits at 30%. No weight will be given to economic benefits that are not incremental due to the awarding of an RPS contract. Those projects taking advantage of the ARRA grant funds will be given priority consideration.

4. Only facilities that will be placed in service on or after the date of notice of the solicitation will be eligible to bid. Facilities that began operation prior to the date of notice of the solicitation will not be eligible to bid. Hydroelectric and Wind & All Other facilities will be required to be in service on or before January 1, 2011. Biomass & Biogas facilities will be required to be in service on or before January 1, 2012.

Note: Generation resource types are as defined in Case 03-E-0188, Renewable Portfolio Standard, Order On Customer-Sited Tier Implementation (issued June 28, 2006) Attachment pp. 1-5.

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.state.ny.us/f96dir.htm. For questions, contact:

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

Data, views or arguments may be submitted to:

Jaclyn A. Brilling, 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-0188SP21)