Adjustments to the Alternative Compliance Payment Rate
The Alternative Compliance Payment (ACP) Rate is adjusted annually pursuant to the Forward Solar Carve-Out ACP Rate Schedule that can be found on the Current Status of the Solar Carve-Out Program page of DOER’s website.
Calculation of and Adjustments to the Minimum Standard
All Retail Electric Suppliers with RPS obligations are required to demonstrate compliance with the RPS Solar Carve-Out as a percent obligation of their load served. The following formula will be used to set the Minimum Standard (MinStnd) for each Compliance Year (CY), based on the total RPS load obligation data available from two years prior Compliance Year.
MinStnd %, CY = MinStnd MWh, CY / Total RPS Load Obligation MWh, CY-2
Minimum Standard: Base Growth Rate
The Minimum Standard is adjusted each year by a base growth rate of 30%, such that the Minimum Standard will increase 30% more than it increased the year before. This growth rate provides a robust market demand growth for the solar industry. Solar Carve-Out Minimum Standard, shall be announced by the Department not later than August 30 of the preceding Compliance Year.
Minimum Standard: Market Balance Adjustments
The Minimum Standard is adjusted each year according to the SREC market oversupply or shortage experienced in the previous Compliance Year. This adjustment maintains market balance by assuring the value of Re-Minted SRECs offered in the auction and protecting ratepayers from unrelenting dependence on ACP compliance.
Minimum Standard Adjustments: Operative Formulas
Compliance year 2010:
For Compliance Year 2010, the Minimum Standard is 34,164 MWh, calculated as 30 MW multiplied by 365 days in the year multiplied by 24 hours in the day multiplied by 0.13 (or 13%) capacity factor.
Compliance Year 2011:
For Compliance Year 2011, the Minimum Standard is 78,577 MWh, calculated as 69 MW multiplied by 365 days in the year multiplied by 24 hours in the day multiplied by 0.13 (or 13%) capacity factor.
Compliance Years after 2011:
MinStnd MWh, CY = Total Compliance Obligation CY-1 + [Total SRECs Generated (projected) CY-1 - SRECs Generated (actual) CY-2] x 1.3 + Banked Volume CY-2 + Auction Volume CY-2
The Solar Carve-Out Renewable Generation Attributes actually generated for the Compliance Year two years prior (CY-2) shall be determined as the Attributes minted by the NEPOOL GIS in the Compliance Year two years prior (CY-2). The total Solar Carve-Out Renewable Generation Attributes projected to be generated for the previous Compliance Year (CY-1) shall be calculated by DOER as the sum of Attributes reported to DOER by the independent Third Party Meter Reader during the first two quarters of the previous Compliance Year (CY-1), and the projection of Attributes to be generated during the final two quarters of the previous Compliance Year prior (CY-1) by considering information including, but not limited to, the Commercial Operation Dates of Units that have received or have pending Statement of Qualifications. DOER shall provide documentation of its projection with its announcement of the new compliance obligation (announcements for Compliance Years 2012 onward can be found at the following page).
NOTE: If the Auction does not clear after the second round, the Auction Safety Value will re-calculate the MinStnd MWh,CY by again adding the term Auction Volume CY-2
Termination of the Program
The RPS Solar Carve-Out program remains in effect until all the Auction Opt-In Terms of the qualified projects and the full shelf-life years of any Re-Minted Auction SRECs have both expired, thereby maintaining price certainty for all solar generators.
For the year after the final Compliance Year, when the Solar Carve-Out Minimum Standard is set to zero SRECs shall cease to exist, and all generation from qualified Solar Carve-Out Renewable Generation Units shall produce RPS Class I Renewable Energy Attributes.
This information is provided by the Department of Energy Resources.