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New York State New York State Renewable Portfolio StandardRenewable Portfolio Standard

(RPS)(RPS)

Case 03-E-0188Case 03-E-0188Issued and Effective September 24, 2004Issued and Effective September 24, 2004

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Renewable Goals:Renewable Goals:

• Target (25% of NYS energy sales Target (25% of NYS energy sales from renewable resources by 2013)from renewable resources by 2013)– 24% from the Commission’s RPS Program24% from the Commission’s RPS Program– At least one percent from voluntary green At least one percent from voluntary green

marketmarket

• Increase energy resource diversityIncrease energy resource diversity

• Reduce air emissionsReduce air emissions

• Support NYS economic developmentSupport NYS economic development

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Categories of RPS Eligible Categories of RPS Eligible

ResourcesResources • Main TierMain Tier

– General Requirement: Commercially operational on or General Requirement: Commercially operational on or after 1/1/03 after 1/1/03

• Customer-Sited TierCustomer-Sited Tier– General Requirements: (1) Commercially operational General Requirements: (1) Commercially operational

on or after 1/1/03, and (2) must be located in NYSon or after 1/1/03, and (2) must be located in NYS

• Maintenance ResourcesMaintenance Resources– General Requirements: (1) In commercial operation General Requirements: (1) In commercial operation

any time prior to January 1, 2003, and (2) mustany time prior to January 1, 2003, and (2) must demonstrate need to receive RPS financial supportdemonstrate need to receive RPS financial support

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Eligible Resources by TierEligible Resources by Tier

•Main TierMain Tier•BiogasBiogas•BiomassBiomass•Liquid BiofuelLiquid Biofuel•Fuel CellsFuel Cells•HydroelectricHydroelectric•SolarSolar•Tidal/OceanTidal/Ocean•WindWind

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Eligibility by Tier (cont.)Eligibility by Tier (cont.)

• Customer-Site TierCustomer-Site Tier

– Typically behind the meter installationsTypically behind the meter installations

• Fuel CellsFuel Cells

• SolarSolar

• WindWind

• Methane Digesters for farm wasteMethane Digesters for farm waste

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Maintenance Tier EligibilityMaintenance Tier Eligibility

•Maintenance ResourcesMaintenance Resources

•Hydroelectric (run of river, 5 MW or Hydroelectric (run of river, 5 MW or less)less)

•WindWind

•Biomass Direct CombustionBiomass Direct Combustion

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Key Component of the RPSKey Component of the RPS• Central Procurement Model administered Central Procurement Model administered

by NYSERDA by NYSERDA – Procurement of renewable attributesProcurement of renewable attributes– Ongoing monitoring and evaluation of the Ongoing monitoring and evaluation of the

programprogram– Receiving and managing RPS funds from utilitiesReceiving and managing RPS funds from utilities– Developing a process for the 2009 ReviewDeveloping a process for the 2009 Review

• Why Central ProcurementWhy Central Procurement– PSC’s long term vision: robust competition PSC’s long term vision: robust competition

for retail functionsfor retail functions– Most efficient way to jump start the programMost efficient way to jump start the program

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First ProcurementFirst Procurement• RFP circulated on December 20, 2004RFP circulated on December 20, 2004• 16 bids received in January 200516 bids received in January 2005• Results:Results:

– 7 contracts awarded7 contracts awarded– procured 821,611 MWh/yrprocured 821,611 MWh/yr– average price about $23/MWhaverage price about $23/MWh

• A second procurement is likely in the first A second procurement is likely in the first quarter of 2006 quarter of 2006

• There will be multiple procurements over There will be multiple procurements over the term of the programthe term of the program

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Further InformationFurther Information

• Public Service Commission website Public Service Commission website http://www.dps.state.ny.ushttp://www.dps.state.ny.us– Select “Whats New”Select “Whats New”– Select “Renewable Portfolio Standard”Select “Renewable Portfolio Standard”

• NYSERDA website NYSERDA website http://www.nyserda.orghttp://www.nyserda.org