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ACP: Annual adjustment of the non-solar alternative compliance payment

December 1, 2016

Annual adjustment of the non-solar alternative compliance payment (ACP) pursuant to Ohio Revised Code Section 4928.64(C)(2)(b) 

Case No. Finding and Order Non-solar ACP year $/MWh
10-469-EL-ACP April 28, 2010 2010 $45.00
11-2399-EL-ACP April 19, 2011 2011 $45.93
12-1486-EL-ACP May 16, 2012 2012 $47.56
13-0995-EL-ACP May 29, 2013 2013 $48.56
14-0746-EL-ACP May 28, 2014 2014 $49.22
15-0461-EL-ACP June 17, 2015 2015 $49.96
16-0714-EL-ACP November 30, 2016 2016 $49.75
17-1531-EL-ACP July 26, 2017 2017 $50.24

Section 4928.64, Ohio Revised Code, establishes specific percentage benchmarks for kilowatt hours generated from renewable and solar energy resources sold by an electric utility for years beginning in 2009 and thereafter. Subsection 4928.64(C)(2)(b), Ohio Revised Code, creates a compliance payment pertaining to these non-solar renewable energy resource benchmarks that is equal to the number of additional renewable energy credits that the electric utility or electric services company would have needed to comply with the applicable benchmark in the period under review times an amount that shall be at least $45.00, and shall be adjusted annually by the Commission to reflect any change in the consumer price index as defined in Section 101.27, Ohio Revised Code.  Subsection 101.27(C)(1), Ohio Revised Code, defines “consumer price index” to mean the consumer price index prepared by the United States bureau of labor statistics (U.S. city average for urban wage earners and clerical workers: all items, 1982-1984=100), or, if that index is no longer published, a generally available comparable index.

In Chapter 4901:1-40, Ohio Administrative Code, the Commission adopted rules to implement the alternative energy portfolio standard established by Section 4928.64, Ohio Revised Code. Rule 4901:1-40-08, Ohio Administrative Code, which became effective on December 10, 2009, addresses compliance payments. Paragraph (A)(2) of this rule, which specifically focuses on the Commission’s annual adjustment of the non-solar renewable energy resource compliance payment, provides:

The required payment for noncompliance with any renewable energy resource benchmark, excluding solar, shall be calculated by quantifying the level of noncompliance, rounded to the next MWh, and multiplying this figure by an amount determined by the commission.

(a) The per MWh payment for renewable energy resources for the year 2009 is forty-five dollars.

(b) Beginning in the year 2010, the per MWh payment for renewable energy resources will be adjusted annually to reflect the annual change to the consumer price index as defined in Section 101.27 of the Revised Code. Such adjustment shall be performed by staff no later than June first of each calendar year. This annual adjustment shall be calculated using the following formula:

((CPIYR2/CPIYR1) * current per MWh payment)

(c) In no event shall the compliance payment for renewable energy resources be less than forty-five dollars per MWh.