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Frequently Asked Questions - #74

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FAQ-74

I am looking for a presentation from last year that provided the Renewable Portfolio Standard (“RPS”) obligations applicable to BGS Suppliers. If that presentation is no longer available, where can I find information regarding current RPS obligations for BGS Suppliers? Is there an example calculation available?


Documents from prior auctions are removed from the BGS Auction website as the information in such documents may no longer be relevant.

BGS Suppliers are responsible for meeting New Jersey’s RPS requirements for solar electric generation, Class I renewable energy, and Class II renewable energy. The RPS requirements for June 1, 2023 through May 31, 2026 are as follows:

 

Solar Electric Generation (SRECs)

Class I Renewable Energy

Class II Renewable Energy

June 1, 2023 to May 21, 2024

4.90%

27.00%

2.50%

June 1, 2024 to May 21, 2025

4.80%

35.00%

2.50%

June 1, 2025 to May 21, 2026

4.50%

38.00%

2.50%

 

Note that the EDCs apply the RPS percentages specified by the BPU to energy supplied by the supplier (and not to energy associated with sales at the retail meter) and hence, apply the RPS percentages to energy that includes distribution and transmission losses and is de-rated by the marginal loss factor. To determine the energy that a Load Serving Energy must supply, PJM uses loss-loaded schedules and de-rates these schedules by marginal losses to arrive at energy settlement values. The factors used in de-ration are determined for each hour for each EDC by PJM and are available in the BGS Data Room. When calculating the BGS Supplier’s obligations under the RPS, each EDC applies the RPS percentages to the values from the PJM settlement, which are also the values for settlement under the BGS Supplier Master Agreement, and which are equal to the energy that a BGS supplier must provide.

Compliance with Offshore Wind Renewable Energy Certificate (“OREC”) obligations, compliance with Transition Renewable Energy Certificate (“TREC”) obligations, and compliance with SREC-II obligations arising from the Solar Successor Incentive Program (“SuSI”) are also a component of a BGS Supplier’s Class I obligation. BGS Suppliers have the responsibility to retire ORECs, but BGS Suppliers bear no cost to acquire the ORECs. Additionally, BGS Suppliers bear no cost to acquire TRECs. Instead, TRECs are retired to the TREC Administrators GATS account and then the statewide Class I requirement is reduced on a 1-to-1 basis. The EDCs expect SREC-II to be administered in the same way as TRECs.

The Auction Manager will make available an example that demonstrates the calculation of a supplier’s RPS obligation. An announcement will be made when this document becomes available.



12/7/2022, in Renewable Portfolio Standards.

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