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 seeking rehearing of its August 1, 2016 Order Adopting a Clean Energy Standard filed on August 30, 2016 by H.Q. Energy Services (U.S.) Inc.
Statutory authority:
Public Service Law, sections 4(1), 5(1)(2) and 66(2); Energy Law, section 6-104(5)(b)
Subject:
Clean Energy Standard.
Purpose:
To promote and maintain renewable and zero-emission electric energy resources.
Substance of proposed rule:
The Public Service Commission is considering a petition filed on August 30, 2016 by H.Q. Energy Services (U.S.) Inc. (HQ) that requests rehearing of the Commission’s August 1, 2016 Order Adopting a Clean Energy Standard (CES Order). HQ argues that the Commission’s decision to exclude new storage impoundment hydroelectric power in the CES is arbitrary and unduly discriminatory and therefore, an error of law. HQ argues that all forms of generation included in the baseline of existing renewable generation as described in the CES Order should also be eligible for CES Tier 1 compensation and that exclusion of large impoundment hydroelectric related to environmental concerns is unsupported by the record. HQ argues that the Commission erred by including existing hydroelectric facilities in the baseline of renewable generation but excluding the same facilities from CES compensation. HQ argues that the Commission needs to provide emissions attribute compensation for all large-scale hydroelectric facilities or such facilities could shift sales of power and/or emission attributes to other states willing to pay more the attributes. HQ further argues that the Commission cannot claim the attributes associated with the electric power HQ has sold or will sell into New York unless HQ specifically sells the power bundled with the attributes. HQ states that if the Commission does not modify the order to provide CES compensation to large hydroelectric facilities, it may alter its internal accounting practices in an effort to prevent New York from counting HQ’s large hydroelectric power in the State’s renewable energy baseline. HQ argues that the Commission erred by not including in the CES all incremental large-scale hydroelectric generation, including impoundment and regardless of vintage that is delivered over new transmission lines. HQ claims that such exclusion is unreasonable and that the record supports allowing transmission into the CES program. Finally, HQ argues that exclusion from the CES of large scale hydroelectric generation and all hydroelectric involving storage impoundment is contrary to the public policy goals of New York and the Commission’s obligation to ensure reliability and cost-effective electric service to the State’s consumers. The Commission may adopt, reject, or modify, in whole or in part, the relief proposed and may resolve related matters.
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:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, NY 12223, (518) 486-2655, email: john.pitucci@dps.ny.gov
Data, views or arguments may be submitted to:
Katheen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, NY 12223, (518) 474-6530, email: kathleen.burgess@dps.ny.gov
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.
