Electric Renewable Portfolio Standards, 011717 NHPUC, 25, 978

Case DateJanuary 17, 2017
CourtNew Hampshire
ELECTRIC RENEWABLE PORTFOLIO STANDARDS
Order No. 25, 978
DE 16-850
New Hampshire Public Utilities Commission
January 17, 2017
         Adjustment to Renewable Class Requirements          Order Maintaining Class III RPS Requirements for 2017 and Modifying Class I Useful Thermal RPS Requirements for 2016           Martin P. Honigberg, Chairman          In this Order, the Commission modifies the Class I useful thermal Renewable Portfolio Standard requirement for calendar year 2016 by delaying the scheduled increase and keeping the level at 0.6 percent of retail electricity sales. The Commission does not modify the statutorily defined Class III Renewable Portfolio Standard requirement for calendar year 2017.          I. PROCEDURAL HISTORY          By Order of Notice issued November 10, 2016, the Commission solicited comment regarding whether it should adjust RSA 362-F electric renewable portfolio standard (RPS) requirements, specifically the RPS requirement for Class III (eligible biomass and landfill gas) for compliance (calendar) year 2017, and the Class I Useful Thermal (Thermal) RPS requirement for the 2016 compliance year. Pursuant to RSA 362:F:3, the Class III RPS requirement for 2017 is 8.0 percent of retail electricity sales, and the Class I Thermal RPS requirement for 2016 is 1.3 percent of retail electricity sales.          Providers of electricity that are required to comply with RSA 362-F achieve compliance by purchasing renewable energy certificates ("RECs"), one certificate representing the renewable characteristic of one megawatt hour ("MWh") of renewable energy generation. If an electricity provider is not able to procure a sufficient number of RECs to comply with the RPS requirement for any particular Class of RECs, that provider must pay the associated ACP into the New Hampshire Renewable Energy Fund. For Class III, the ACP rate for 2017 is set at $45.00 per REC. For Class I Thermal, the 2016 ACP rate is set at $25.33 per REC.          Pursuant to RSA 362-F:4, VI, "[a]fter notice and hearing, the commission may modify the Class III and Class IV renewable portfolio standards requirements under RSA 362-F:3 for calendar years beginning January1, 2012 such that the requirements are equal to an amount between 85 percent and 95 percent of the reasonably expected potential annual output for available eligible sources after taking into account demand from similar programs in other states." RSA 362-F:4, V allows the Commission to accelerate or delay by up to one year any given year's incremental increase in Class I RPS requirements "[f]or good cause, and after notice and hearing."          The Commission held a public comment hearing on December 6, 2016. The following parties offered public comment at the hearing: Robert Olson, Esq., on behalf of Bridgewater Power Company, LP, ENGIE North America, Inc., Tamworth and Pinetree Power, Inc., Springfield Power, LLC, DG Whitefield, LLC, and Indeck Energy Alexandria, LLC, all wood-fueled independent power producers (collectively the "Wood IPPs"); Charles Neibling on behalf of Innovative Natural Resource Solutions ("INRS"); Ray Albrecht on behalf of the National Biodiesel Board ("NBB"); Jason Stock, on behalf of the New Hampshire Timberland Owners Association ("NHTOA"); Dan Allegretti on behalf of Constellation NewEnergy ("Constellation"); Nathan Hebel and Jim Monahan on behalf of ReEnergy Holdings, LLC ("ReEnergy"); Mark Dean, Esq., on behalf of New Hampshire Electric Cooperative ("NHEC"); and Matthew J. Fossum, Esq., on behalf of Public Service Company of New Hampshire d/b/a/ Eversource Energy ("Eversource").          The Commission allowed interested parties to provide written comments by close of business on December 6, 2016. Written comments were provided by Liberty Utilities (Granite State Electric) Corp d/b/a Liberty Utilities ("Liberty"), Constellation, and ReEnergy.          II. PUBLIC COMMENTS          A. Wood IPPs          The Wood IPPs recommended that the Commission leave the 2017 Class III RPS requirement at the 8.0 percent level set by statute. The Wood IPPs made this recommendation based on a review of Class III supply and demand, and the activities in the RPS market in other New England states.          According to the Wood IPPs, there are eight (8) biomass...

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