PSC-23-11-00016-P A Proposed Budget for Combined Heat and Power Projects and Collections to Support Such Projects

6/8/11 N.Y. St. Reg. PSC-23-11-00016-P

NEW YORK STATE REGISTER

VOLUME XXXIII, ISSUE 23

June 08, 2011

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-23-11-00016-P

A Proposed Budget for Combined Heat and Power Projects and Collections to Support Such Projects

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 NYSERDA's request for an incremental $15 million and associated administrative costs for a Combined Heat and Power initiative submitted as part of its proposed "Operating Plan for Technology and Market Development Programs."

Statutory authority:

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

Subject:

A proposed budget for Combined Heat and Power projects and collections to support such projects.

Purpose:

To promote electric and gas energy conservation programs in New York.

Substance of proposed rule:

The Commission is considering whether to adopt, modify, or reject, in whole or in part, or to take other action regarding a request for $15 million in "incremental funding" for a Combined Heat and Power initiative as part of the New York State Energy Research and Development Authority's (NYSERDA) proposed System Benefit Charge (SBC) "Operating Plan for Technology and Market Development Programs" for the period 2012-2016 submitted on May 16, 2011 in Case 10-M-0457.

On December 30, 2010, the Commission issued an "Order Continuing System Benefit Charge Funded Programs" in Case 10-M-0457. Among other actions, that order approved a six-month extension of SBC III through December 31, 2011 and the transition of SBC energy efficiency resource acquisition programs to the Energy Efficiency Portfolio Standard (EEPS) portfolio. The order also set the annual SBC collections for 2012 at $87,237,122 for electric and $0 for gas. Beginning on January 1, 2013, the order set the annual SBC collections at $83,912,087 for electric and $6,212,913 for gas. The order deferred a decision on NYSERDA's proposed Technology and Market Development (T&MD) portfolio and directed NYSERDA to submit a detailed operating plan for its T&MD portfolio upon completion of an intensive outreach process with all stakeholders.

NYSERDA's proposed T&MD portfolio operating plan includes a total budget of approximately $87.9 million over five years (January 1, 2012 until December 31, 2016) for an incremental Combined Heat and Power program. Combined heat and power systems use thermal energy from power generation equipment for cooling, heating and humidity control. The $87.9 million budget figure represents an average annual budget of $17.6 million consisting of $15 million in "incremental funding" for Combined Heat and Power, and $2.6 million for administration, evaluation and the New York State Cost Recovery Fee. NYSERDA does not propose specific MWh or MMBtu savings targets for the Combined Heat and Power portion of its proposed T&MD portfolio.

The Commission will be considering a schedule of collections from electric and gas ratepayers through the System Benefit Charge to provide NYSERDA with the funds necessary to support expenditures on the program. If an allocation of collections from gas customers is approved, and costs are to be collected from gas ratepayers, the Commission may have to raise the cap it previously imposed on annual SBC collections from gas ratepayers by a similar amount.

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.

(10-M-0457SP3)