The United Illuminating Company - ZREC and LREC Long Term Contracts (Connecticut)

From Open Energy Information

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut


Name The United Illuminating Company - ZREC and LREC Long Term Contracts
Incentive Type Performance-Based Incentive
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Construction, State Government, Installer/Contractor, Tribal Government, Fed. Government, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional
Eligible Technologies Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Fuel Cells using Renewable Fuels
Active Incentive Yes
Implementing Sector Utility
Energy Category Renewable Energy Incentive Programs
Amount Prices determined through competitive solicitation



Eligible System Size ZRECs: Projects larger than 100 kW and up to 1 MW in nameplate capacity

LRECs: Projects up to 2 MW in nameplate capacity

Equipment Requirements Must have been installed after July 1, 2011
Start Date 2012-05-01


Funding Source RPS



Maximum Incentive Maximum Bid price for Year 3 (2014): 302.71 per ZREC; 200 per LREC
Ownership of Renewable Energy Credits Utility


Program Budget Approximately $9.6 million per year



Terms 15-year standard contract
Program Administrator United Illuminating
Website http://www.uinet.com/powerprocurement


References DSIRE[1]


Summary

NOTE:'' Next round of solicitation is expected to open on July 1st, 2015.


In July 2011, Connecticut enacted legislation amending the state's Renewables Portfolio Standard and creating two new classes of renewable energy credits (RECs): Zero Emission Renewable Energy Credits (ZRECs) and Low Emission Renewable Energy Credits (LRECs).

The state's two investor-owned electric utilities, United Illuminating (UI) and Connecticut Light & Power (CL&P) must enter into 15-year contracts for RECs from zero-emission "Class I" renewable energy facilities (on the customer side of the meter) larger than 100 kilowatts (kW) but not larger than one megawatt (MW). Zero-emission Class I facilities include solar, wind and hydro generators. Resulting zero emission RECs (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on ZREC contracts annually.* The price cap of one ZREC in 2012 was $350, $325.50 in 2013, and $302.71 in 2014. The Connecticut Public Utilities Regulatory Authority (PURA) may reduce the ZREC price cap annually by 3% to 7%.

The two utilities also must enter into 15-year contracts for RECs from low-emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low-emission facility" status, but this category could include facilities that generate electricity using fuel cells, biomass or landfill gas. Resulting low-emission RECs (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on LREC contracts annually.* The price cap of one LREC was $200 in 2012 and 2013.

The utilities jointly submitted their six-year solicitation plan in December 2011 and issued their first request for proposals (RFP) in May 2012. Winning bids are evaluated based on project quality, proposed ZREC or LREC price, and compliance with the RFP process. Bids must be submitted by email. Projects must be located in CL&P's or UI's service territory.


* PURA is authorized to review this budget and make adjustments after Year 3 for LRECs and Year 4 for ZRECs. It may terminate the program entirely if technology costs do not continue to fall. Because the utilities must spend $8 million per year on new 15-year ZREC contracts and $4 million per year on new 15-year LREC contracts, the total value of the annual solicitation is $120 million for ZRECs and $60 million for LRECs.

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Incentive Contact

Contact Name LREC/ZREC Solicitation Information
Department The United Illuminating Company
Address 157 Church St
Place New Haven, Connecticut
Zip/Postal Code 06510
Phone (877) 947-3873


Email lrec.zrec@uinet.com
Website http://www.uinet.com



Authorities (Please contact the if there are any file problems.)

Authority 1: S.B. 1243 (Public Act 11-80)
Date Effective 2011-07-01
Date Enacted 2011-07-01


Authority 2: Conn. Gen. Stat. § 16-244r et seq.


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content