Summary
Exelon Corporation, through its subsidiaries, has entered into significant agreements with the New York State Energy Research & Development Authority (NYSERDA) related to the procurement of Zero Emission Credits (ZECs). These agreements, effective April 1, 2017, through March 31, 2029, are designed to preserve the environmental attributes of zero-emission nuclear power generating facilities in New York. The program aims to provide financial support for these facilities by compensating them for their zero-emission characteristics. The NYSERDA Agreements establish a structured procurement process for ZECs over several two-year tranches, with pricing administratively determined. This initiative, stemming from the New York Public Service Commission's Clean Energy Standard, is a crucial development for Exelon's nuclear generation assets in New York, offering a long-term revenue stream tied to the facilities' environmental benefits. The cost of these ZECs will ultimately be recovered from New York ratepayers.
Key Highlights
- 1Exelon's subsidiaries entered into three separate NYSERDA Agreements for Zero Emission Credits (ZECs) on November 18, 2016.
- 2These agreements support the New York Clean Energy Standard, aiming to preserve zero-emission nuclear power generation.
- 3The contracts are effective from April 1, 2017, to March 31, 2029, providing long-term revenue visibility.
- 4ZECs will be procured in six, two-year tranches, with pricing determined administratively.
- 5Pricing for Tranche 1 is set at $17.48/MWh, escalating over the contract term based on the Social Cost of Carbon.
- 6The quantity of ZECs purchased is capped based on the facilities' historic contribution to the clean energy mix.
- 7Costs associated with these ZECs will be recovered from New York ratepayers through commodity charges on customer bills.