From: Jason Fromberg <jasonfromberg@navisunllc.com>
Sent: Friday, June 7, 2019 10:11 AM
To: RPS, DOER (ENE)
Cc: John Malloy
Subject: Public Comment on Proposed Changes to RPS I Regulations
Dear Mr. Wassam, Commissioner Judson, and Mr. Judge,
Navisun is a solar investor that has developed, built and owned more than 25MWdc of solar in Massachusetts across the SREC I, SREC II, and SMART programs. We’ve made significant investments in Massachusetts because of the DOER’s commitment to the SREC programs, and the regulatory certainty that we, until April, had believed exists in the Commonwealth.
Specifically, we are writing in opposition to the proposed changes to 225 CMR 14.00 that disqualifies electricity generation after the SREC I opt-in term from receiving auction-ineligible SRECs, and instead grants Class I RECs (RPS Class I Section 2d of the document here: LINK).
We own two projects totaling 4 MWdc that have statement of qualification dates before Dec 31, 2013, and we bought each of these projects just last year under the assumption that the post-opt-in-period SRECs would still qualify for SREC compliance, but would not be eligible for the Solar Credit Clearinghouse Auction.
The assumption was based on the market convention, which we understood to be based on guidance from the DOER. Others have cited (LINK) DOER’s Dec 2009 Webinar (LINK) and the Dec 2012 presentation (LINK) as examples of guidance that set these expectations.
We implore the DOER to reconsider the proposed changes, and to ensure calculation of the Solar Carve-out Minimum Standard includes these auction-ineligible SRECs.
DOERs proposed changes, and any additional changes that would reduce the value of the auction-ineligible SRECs would be an retroactive regulatory change. This would not only cause an unexpected impairment to our investments, but it would also impair the regulatory certainty which the Commonwealth of Massachusetts has thus far done a commendable job in maintaining.
Sincerely,
John Malloy
Managing Partner and Co-Founder