Connecticut Emissions Market
Introduction
This is part of North East Power Pool (NEPOOL) to which is comprised of CT, ME, MA, NH, RI, and VT.
NEPOOL GIS creates REC certificates on a monthly basis and puts them into the GIS system on a quarterly basis. There is a lag of three to six months between when electricity is generated and certificates are issued.
The Connecticut Department of Public Utility Control (DPUC) is in charge of implementing the RPS.
Eligible technologies include:
- Class I
- Wind
- Methane gas from landfills
- Fuel cells
- Solar PV
- Ocean thermal
- Wave or tidal
- Hydropower facilities - not larger than 5MW; beginning operations on or after July 1, 2003; and don't cause an appreciable change in the river's flow
- Biomass to biomass gasification plant that uses land clearing debris; won't result in depletion of resources; biomass must be cultivated and harvested in a sustainable manner; average emission rate equal to or less than 0.075 pounds of NOx per MMBTU of heat input
- Biomass facilities - smaller than 500 kw
- Distributed generation - from an eligible Class I energy source
- Class II
- Hydropower to not larger than 5MW, don't change the river's flow, but were in operation prior to July 1, 2003
- Trash-to-Energy
- Biomass facilities that meet above criteria except have NOx emissions less than or equal to 0.2 pounds per MMBtu
Reporting Year/Schedule
These are according to GIS, and are measured in calendar years:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Generation Period | Jan 1 to Mar 31 | Apr 1 to June 30 | Jan 1 to Mar 31 | Oct 1 to Dec 31 |
| Transfer Period | Jul to Sept 15 | Oct 15 to Dec 15 | Jan 15 to May 15 | Apr 15 to Jun 15 |
Implementation Schedule
Load serving entities (LSEs) must purchase and retire the quantity of NEPOOL certificates equivalent to the following percentages of their portfolios:
| Year | Class I | Class I or II |
|---|---|---|
| 2005 | 1.5% | 3.0% |
| 2006 | 2.0% | 3.0% |
| 2007 | 3.5% | 3.0% |
| 2008 | 5.0% | 3.0% |
| 2009 | 6.0% | 3.0% |
| 2010 | 7.0% | 3.0% |
Location:
Possible to import energy from renewable sources in adjacent power pools and create RPS-eligible certificates; however this hasn't been done yet due to technical/logistical issues (for instance — wind power in upstate NY would be ideal yet there is an issue with real-time monitoring). The DPUC is still deciding on whether to accept attributes and issue certificates for energy not delivered into NEPOOL.
Banking
- There is no banking of certificates (certificates expire in the GIS system after Q4), however;
- LSEs can make up deficiency in one year by using certificates generated in the first three years of the following year — the certificates can't then be (double) counted for that year.
Penalties
- Penalty for failure to meet the RPS is 5.5 cents per kWh, or each $55 for each Connecticut Class I/II eligible NEPOOL certificate.