Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 69 - GENERAL ORDERS, POLICY STATEMENTS AND GUIDELINES ON FIXED UTILITIES › PENNSYLVANIA SOLAR PROJECTS › Section 69.2904 - Contracts for the purchase of SRECs by EDCs

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Standardized contracts.
EDCs should employ standardized contracts for their purchase of SRECs from
					 large-scale solar projects and small-scale solar projects. The standardized
					 contract for small-scale solar projects should be simple, understandable and
					 provide for the option to purchase SRECs from solar aggregators. Standardized
					 contracts for the long-term procurement of SRECs should be from 5 to 20 years
					 in length.
(b)
Contracts
					 with solar aggregators.
The Commission finds it reasonable and
					 efficient, and therefore encourages EDCs to execute a master agreement with a
					 solar aggregator for the purchase of SRECs from various sources that
					 establishes a prevailing SREC market price at a particular point in time
					 through letter agreements that incorporate the terms of the master
					 agreement.
(c)
Performance
					 guarantees, security and other contract terms.
While EDCs may require
					 the posting of bid security in an RFP for large-scale solar projects, bid
					 security for small-scale solar projects is not necessary due to the manner in
					 which the SREC market price for these projects is established. In addition,
					 small-scale solar projects under 15kW in nameplate capacity may use estimates
					 to report SREC generation to the PJM-GATS system, as authorized under the AEPS
					 Act, and should not be required to provide security relating to project
					 completion or performance. Small-scale solar project contracts for projects at
					 or above 15kW in nameplate capacity, or from a solar aggregator selling the EDC
					 SRECs from projects 15kW or more in nameplate capacity, may contain a security
					 deposit, refundable upon completion of project construction and certification
					 of initial performance, as well as a performance guarantee refundable over the
					 performance period or at the end of the contract. These provisions may be
					 included to ensure that the aggregated solar projects supporting the SRECs are
					 actually constructed and perform as designed. Security deposits for projects
					 15kW or more in nameplate capacity, or aggregated projects 15kW or more in
					 nameplate capacity, may be converted, upon reasonable advance notice by the EDC
					 to the impacted parties, from a refund to a performance guarantee upon project
					 completion and certification. In addition, small-scale solar project SREC
					 contracts may provide for EDC remote monitoring of solar installations.
					 Contracts between EDCs and others for the purchase of SRECs from small-scale
					 solar projects may also provide for a reasonable allocation of the risk of a
					 project failing due to force majeure-type events. EDCs may establish reasonable
					 financial qualifications for solar aggregators from whom they purchase
					 SRECs.
(d)
Contracts on
					 behalf of residential customers.
EDCs are encouraged to contract for
					 SRECs with solar aggregators that obtain SRECs from residential owners of
					 small-scale solar projects. These projects can provide a beneficial way for
					 those customers to cope with the volatility of electricity prices.
(e)
Stakeholder working
					 group.
An EDC standardized contract and other related documents, for
					 the purchase of SRECs from large-scale solar projects and small-scale solar
					 projects should be posted on the Commission's web site and periodically updated
					 by means of input from a stakeholder working group to ensure that these
					 contracts reflect the most recent developments in Pennsylvania law and energy
					 policy.
(f)
Customer
					 education.
An EDC is encouraged to educate its retail customers of the
					 opportunity to sell SRECs under the large-scale solar project RFP solicitation
					 and the small-scale solar program in support of local development of solar
					 resources.
This section cited in 52 Pa. Code §
													69.2901 (relating to purpose); and
						  52 Pa. Code §
													69.2902 (relating to
						  definitions).