USA: New Jersey BPU to Hold Meetings on New Offshore Wind Funding Mechanism
The Staff of the New Jersey Board of Public Utilities (BPU) will hold a stakeholder meetings February 21, 2013 for all interested parties and members of the public regarding the Offshore Renewable Energy Certificate (OREC) funding mechanism specified in the Offshore Wind Renewable Energy rules at N.J.A.C. 14:8-6.6.
BPU Staff has determined that the OREC funding mechanism should be developed through rulemaking with a formal stakeholder process. The proposal and adoption of the funding mechanism by the Board will provide the cost certainty that the industry has indicated is necessary to proceed with prospective projects.
Offshore Wind (OSW) Stakeholders had previously proposed the establishment of an OREC Clearinghouse to facilitate the flow of OREC payments from suppliers to developers. BPU Staff considered the viability of a clearinghouse model and solicited additional input from Boston Pacific Company, Inc., on alternate OREC funding mechanism models.
BPU Staff’s primary objective was to create a funding mechanism proposal that allows for proper regulatory oversight, adequately balances ratepayer interests, and satisfies the OSW Developers’ ability to finance their offshore wind projects.
Along with this notice, BPU Staff is providing stakeholders and members of the public with a proposal prepared by Boston Pacific on the design of a funding mechanism for ORECs. The proposal does not include all details that would be necessary for a rulemaking, but rather provides a framework for discussion with stakeholders.
Press release, January 22, 2013; Image: Siemens