Monday, October 05, 2009

PSB Standard Offer Docket Nos. 7523 & 7533 - Update

On September 30th, the Vermont Public Service Board issued its Order establishing the Standard Offer Program. A copy of the Order can be found here. The copy of the Standard Offer contract can be found here.

Here are some key issues resolved by the PSB in the Order:

1. There will be a queue. The details of it will be “worked out” between the PSB and Speed Facilitator. The Speed Facilitator will begin accepting applications at 9am on 10/19, unless the PSB sets a different date.

2. Speed Facilitator is directed to ensure that “no one technology fills more than 25% of the queue. This cap will be revisited after 6 months.

3. Standard Offer contract will require a $200 administrative fee (non-refundable) and a $10 per kw refundable deposit. If the project is commissioned within three years of the date of this contract, 100% of the deposit will be refunded; if Producer voluntarily withdraws from the Queue within the first year, the entire deposit is returned; if Producer withdraws from the Queue after the first year, but before the end of the second year, 75% of the deposit is returned; and if Producer withdraws from the Queue after the second year, but before the end of the third year, 50% of the deposit is returned. Any interest earned on the refundable deposits shall be retained by Facilitator and utilized to defray Facilitator's costs of operation.

4. Documentation of site control is necessary to get into the queue: (In order to demonstrate site control, Producer shall provide evidence of: (i) fee simple title to such real property or (ii) a valid written leasehold interest for such real property or (iii) a valid written option, exercisable unconditionally by the Producer or its assignee, to purchase or lease such real property or iv) a duly executed contract for the purchase or lease of such real property.

5. Standard Offer contract will require developer to provide cost information for the project, but certain information can remain confidential as trade secrets.

Image Source: Richard Masoner

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