Md. Code Regs. 20.61.06.10 - Qualified Offshore Wind Project Invoices; Payment and Transfer of ORECs
A. Subject to the
provisions of this regulation, a project may deliver an OREC invoice to its
administrator no more frequently than on a monthly basis.
B. During the initial year in which the
offshore wind energy RPS takes effect and so long as project COD shall have
occurred with respect to a qualified offshore wind project, the project may
deliver the first OREC invoice to its administrator no earlier than the first
five business days of the second calendar month immediately following the end
of the generation month in respect of which ORECs associated with that project
are created by PJM EIS. Thereafter, each OREC invoice may be delivered by a
project to its administrator within the first 5 business days of the beginning
of each calendar month during the term of an OREC price schedule.
C. Each OREC invoice shall state the number
of ORECs created by PJM EIS for that project for the applicable generation
period covered by that invoice (but excluding any ORECs created during any
generation periods previously included in OREC invoices submitted to the
administrator) and shall be accompanied by a copy of a statement or statements
from PJM EIS confirming that the ORECs referenced in the OREC invoice have been
created for the project. The OREC invoice shall also state the dollar amount
due to that project for the ORECs referenced in the OREC invoice. That dollar
amount shall be equal to the product of the number of ORECs created by PJM EIS
for that project during the relevant period and the applicable OREC price set
forth in the project's OREC price schedule, less:
(1) Any deductions the project is required to
make in accordance with Regulation .13 of this chapter;
(2) Any deductions on account of the
administrator's fees and expenses as contemplated by Regulation .09H of this
chapter; and
(3) Any deductions
contemplated by Regulation .09K or L of this chapter.
D. Each administrator shall be responsible
for confirming the accuracy of the computations and number of ORECs created as
set forth in the OREC invoices delivered to it by comparing that number of OREC
set forth in the PJM EIS statements referred to above and the number set forth
in the OREC invoices and shall, if it considers necessary, request further
information from the project or PJM EIS, or both (but only if that information
is customarily provided by PJM EIS at that time) in assisting it to make that
determination.
E. Subject to
Regulation .11G of this chapter, if the administrator determines under §D
of this regulation that the OREC invoice submitted to it does not contain any
error or inaccuracy, it shall approve and pay the OREC invoice within 10
business days of receipt of that invoice. If the administrator determines under
§D of this regulation that the OREC invoice submitted to it does contain
errors or inaccuracies, then it shall inform the project of the same and
request that the project correct the error or inaccuracy prior to making
payment under the OREC invoice.
F.
Each qualified offshore wind project shall, for the term of its OREC price
schedule, provide irrevocable instructions to PJM EIS to accept all
instructions in connection with that project's GATS account from the
administrator, until instructed otherwise by the administrator and the
qualified offshore wind project.
G.
Each qualified offshore wind project shall provide irrevocable standing
instructions to PJM EIS to automatically deposit in the administrator GATS
account all ORECs (or RECs associated with electricity derived from offshore
wind energy) created for the project and the administrator shall, if required
by PJM EIS, accept the deposit of ORECs (or RECs, as relevant) in accordance
with the rules of the PJM EIS until the end of the term of the project's OREC
price schedule. The project shall not, while the standing instructions remain
in effect, take any steps to cancel or modify the standing instructions other
than informing PJM EIS of a change in the administrator in the event the
administrator is replaced under Regulation .09K or L of this chapter. At the
end of the term of the project's OREC price schedule, the administrator shall
terminate the standing instructions and instruct PJM EIS to accept all future
instructions regarding the RECs created for that project directly from the
project (or another person as the project may designate).
H. Each administrator shall, no later than 15
days after the deposit of ORECs in respect of an OREC invoice to the
administrator GATS account and payment of the relevant OREC invoice by the
administrator, transfer the relevant number of those ORECs from the
administrator GATS account to the GATS account of each OREC purchaser. The
number of ORECs transferred by the administrator to the GATS account of each
OREC purchaser will equal the aggregate dollar value of the OREC purchase
payments made by that OREC purchaser for the relevant quarterly period divided
by the aggregate dollar amount of all invoices sent to OREC purchasers by that
administrator for the same period, multiplied by the number of ORECs created
for the relevant project by PJM EIS for the same period and delivered to the
administrator's GATS account; provided that, notwithstanding the above, the
number of ORECs delivered to an OREC purchaser shall not exceed a number
determined by dividing the OREC purchase payments made by that OREC purchaser
for that quarter by the OREC price for that project for the relevant
year.
Notes
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