Standard Offer Docket No. 7533 - Update

Several important updates are provided below on the Vermont Standard Offer program.

On October 16th, the PSB issued an Order resolving numerous questions pertaining to how the Standard Offer program will be implemented. One of the key issues ruled upon covers how the SPEED Facilitator is to handle it if applications for projects exceed the limits by energy source provided in the PSB's September 30th Order. The PSB ruled that a lottery system would be used to select projects that submit a timely application.

The queue opened for applications on October 19th. Yesterday, the SPEED Facilitator filed a report on the first day of the program. The totals appear at the top of this post and are contained in a story on VPR.

Solar and biomass project applications exceed their allocations of the 50 MW available under the Standard Offer program, and a lottery to select projects will occur at the PSB on Thursday (10/22) at 10am. You must request permission from the PSB to observe the lottery.

In the VPR story, Representative Tony Klein, who sponsored the legislation creating the program, reacted to the first day's results by stating: "This is what the economy desperately needs at this moment. What's so exciting to me as a legislator is to see and realize that in May we create this legislation and here we are in the middle of October we almost have boots on the ground ready to get this technology deployed."

We agree with Representative Klein that Monday's results are a good signal, but would offer that the real measure of success of the program should be based on projects actually built and generating electricity.

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