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David Cherney, energy market expert at PA Consulting Group, provides his perspective on an ongoing litigation from a group of power generators regarding Zero Emissions Credits (ZECs) required under the Clean Energy Standard.
Commenting on this topic, David states: “In FERC’s mind RECs were not part of wholesale markets, but rather separate and distinct markets created by the states independent of wholesale markets. Renewable energy attributes are separate from wholesale power and capacity markets so they don’t fall under FERC's remit but fall under that of the state.”
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David concludes: “The NYPSC designed ZECs around the social cost of carbon and not wholesale power markets. By this reasoning, ZECs are not directly tied to energy or capacity sales of the upstate NY plants. It’s not a lock that the Supreme Court would rule against NY State on this.”