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Industry group urges indexed REC model, supports RPS procurements with consumer safeguards
Summary
Renew Northeast told the Joint Committee the proposed procurement reforms to the Renewable Portfolio Standard should protect consumers and lower financing risk by using an indexed renewable energy credit model similar to New York's approach.
Nathan Rake, manager of state and local affairs at Renew Northeast, testified in support of provisions in the governor's affordability legislation that would reform procurements tied to the Renewable Portfolio Standard (RPS) and urged the committee to adopt an indexed renewable energy credit (REC) model.
Rake said procurements that bring large-scale clean resources online “help keep the RPS on track by bringing new, large scale resources online. More clean energy means lower costs, reduced fossil fuel volatility, and reliable supply for a growing electrified economy.” He warned that a procurement design that makes the offtake arrangement an “attribute-only” instrument could shift market risk to developers and raise consumer costs by increasing financing challenges.
As an alternative, Rake recommended an index REC model that links payments to market prices, saying that approach “reduces volatility and lowers project financing risk and overall consumer costs,” pointing to a model used in New York as a template. He urged the committee to support H3497, "an act relative to a renewable portfolio standard review," and to ensure procurement designs balance developer financeability with consumer protections.
The committee did not vote on procurement language at the hearing. Rake welcomed questions and offered to provide more detailed drafting suggestions to the committee.
