On January 25, 2016, the New York Department of Public Service Staff issued a white paper on the Clean Energy Standard (CES), as part of a REV-related proceeding (Reforming the Energy Vision). As directed by Governor Andrew Cuomo in late 2015, the white paper addresses four policy objectives of the CES, which are to:

1. Increase renewable electricity supply to achieve the 50 by 30 goal (i.e., 50% of electricity used in NY to be generated by renewables by 2030)
2. Support construction of new renewable generation in New York
3. Prevent premature closure of upstate nuclear facilities
4. Promote the progress of REV market objectives

• In total, FitzPatrick, Ginna, and Nine Mile Point 1 and 2 provide approximately 16% of New York’s energy, and their closure is estimated to increase CO2 emissions by 15.5 million metric tons per year²
• The shutdown of FitzPatrick, in combination with other planned retirements and shutdowns, would leave New York with a resource deficiency starting in 2019, and requiring 325MW of new capacity³
• The maximum price per ZEC will be set annually by the Public Service Commission as the difference between anticipated operating costs of the units and wholesale prices
• The ZEC obligation of the LSEs will be set in proportion to their annual retail electricity sales
• The New York Public Service Staff maintains that the Commission setting a price of solely the environmental attribute is independent of the actual wholesale price of energy, and thus within its jurisdiction
• The Staff white paper is being further developed through stakeholder comments and technical conferences with an order expected in the first half of 2016

• The CES and tradeable ZECs would provide a revenue stream to eligible nuclear generators that may stem the tide of nuclear plant closures in the Northeast
• The ZEC provides a quantifiable measure of the environmental benefit of emissions-free electricity produced by nuclear generators, albeit at a capped value based on operating costs rather than a specified value for avoided carbon dioxide emissions
• The CES approach is similar to renewable portfolio standards market structures used in neighboring states, potentially enabling regional participation
• Timing will be critical; Entergy has already indicated that the CES program “will not be in place in time to change the outcome for FitzPatrick,”⁴  while Staff indicates that the quantity of ZECs mandated are based on the assumption that FitzPatrick and Ginna continue to operate⁵

• New York reveals details on plan to increase renewables, save nuclear
• NYISO set to release reliability study on Entergy’s plans to close nuclear plant
• NYISO: FitzPatrick shutdown will leave New York with statewide resource deficiency

Contributing Author: Chris Sturgill