W&S-65: While changes to sec. 2.2 are appreciated, it remains unclear whether a contract that makes payment to seller contingent on the buyer’s cost recovery can be financed. Have you explored whether this revised section is financeable?

Yes. A similar provision was included in the IPA’s 2010 long-term procurement of renewable resources.  Furthermore, those contracts  (the 2010 LTPPAs)  included a provision under which the number of RECs purchased under the contract could be curtailed in case of insufficient budget, which could (and did) occur if load migrated from the utilities to alternative retail electric suppliers.  Similar provisions are used in REC contracts used by the utilities in the New England states such as by the Connecticut Light and Power Company and the United Illuminating Company as well as contracts used by the utilities in Pennsylvania such as PPL Electric Utilities Corporation, PECO Energy Company and Pennsylvania Power Company, and there may be other contracts with similar provisions of which the Procurement Administrator is unaware.

Revised 7-21-2017 first posted 7-5-2017