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May 18, 2018
NEM Events

Please mark your calendars and plan to join us for upcoming NEM events. Agendas will be available shortly. Sponsorships are available. Please contact headquarters if you are interested in sponsorship.

NEM’s Mid-Atlantic Energy Summit will be held July 25-26, 2018, at the Hyatt Regency Baltimore Inner Harbor. You may register here.

NEM’s Western Energy Policy Roundtable will be held October 24-26, 2018, at Caesars Palace in Las Vegas, Nevada. You may register here.

FERC Staff Summer 2018 Energy Market and Reliability Assessment

FERC Staff presented its Summer 2018 Energy Market and Reliability Assessment at yesterday's Commission session. The assessment noted that a warmer than normal summer is expected for most of the country, with temperature being the largest determinant of electric power demand levels in summer because of air conditioning load. Reserve margins in most of the NERC regions are adequate. ERCOT's anticipated reserve margin is expected to be below its reference margin level, but it reports having sufficient operational tools to maintain system reliability. Below average hydroelectricity production may put upward pressure on energy prices in California. FERC Staff also noted that adequate natural gas supplies in most regions will be sufficient to meet near record high gas demand from gas generators. Summer 2018 natural gas futures prices are generally lower than those for summer 2017. Performance requirements will be applicable to capacity resources in PJM and ISONE this summer, meaning resources that fail to perform during shortage conditions will be penalized and resources that over-perform in providing energy and reserves will receive additional compensation. The full text of the Assessment is available on the NEM Website.

Click here to view all past updates.
EGS Compliance with Act 40 Requirements

In its recent Order implementing Act 40 on out-of-state solar photovoltaic credits, the Commission interpreted the legislation so as to only permit out of state facilities that were before October 30, 2017, (a) already certified as an AEPS Tier I Solar Photovoltaic system and that (b) have entered into a contract with a Pennsylvania EDC or EGS serving Pennsylvania customers, for the sale of solar credits, to maintain certification until the expiration of the contract. The Commission also clarified that the certification only will apply to the amount of credits contractually committed to the EDC or EGS.

This week, the Commission issued procedural information as to how EGSs or EDCs seeking to qualify such credits should do so through the filing of a petition. The Commission stated that the petition, at a minimum, should include:

"• Complete and unredacted copies of all contracts, and amendment(s) thereto supporting the claim for approval of AECs to be used by the EDC or EGS to meet its Tier I solar PV share requirements of the AEPS Act.
• Documentation that the out-of-state solar PV facilities were certified as an AEPS Act Tier I solar PV resource before October 30, 2017.
• Documentation that the EDC or EGS entered into a contract prior to October 30, 2017, for the purchase of AECs.
• Documentation of the expiration date of the contracts.
• Documentation of the number of AECs being purchased by the EDC or EGS.
• Verification pursuant to 52 Pa. Code § 1.36."

EGSs and EDCs seeking to qualify credits were originally required to file a petition within sixty days of July 2, 2018. However, because the Commission granted reconsideration of its Act 40 Order pending review on the merits, that date has been stayed.

"The Commission is cognizant that we directed Electric Distribution Companies and Electric Generation Suppliers seeking to qualify credits under Section 280(2)(ii) of the Administrative Code, 71 P.S. § 714(2)(ii), to file a petition with the Commission within 60 days from the entry date of the Implementation Order. As the Commission is considering the merits of the instant petition for clarification and/or reconsideration the 60-day period to file a petition seeking qualification of credits under Section 2804(2)(ii) will be stayed pending review of and consideration on the merits of the instant petition."

The full texts of the Act 40 Orders are available on the NEM Website.

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