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    UD-19-01: Establishing A Docket And Opening A Rulemaking Proceeding To Establish Renewable Portfolio Standards

    Council Docket UD-19-01, established via Resolution R-19-109, is a rulemaking proceeding to establish a renewable portfolio standard (“RPS”) for the City of New Orleans.  The RPS requires Entergy New Orleans (“ENO”) to use a certain amount of energy from renewable sources (e.g. solar, wind, biomass) in its resource portfolio.  This proceeding is consistent with the Council’s expressed support for the efficient use of clean, sustainable technology to improve the quality of life for citizens and businesses.

    The Council solicited feedback on the following key questions:

    (1) What would an appropriate RPS target for New Orleans be, and should it be a requirement or a goal?

    (2) How should a New Orleans’ RPS target be satisfied?

    (3) How should the RPS standard be enforced, should the Council consider a penalty or Alternative Compliance Payment structure?

    (4) What protections should be put in place to protect ratepayers from unreasonable increases in rates due to RPS?

    Pertinent docket deadline dates are/were as follows:

    • May 1, 2019 – All interested persons that wished to intervene in this docket filed motions to intervene with the Clerk of Council with objections to intervention requests filed within five days of such requests; 
       
    • June 3, 2019 – Comments from all parties regarding the establishment of a Renewable Portfolio Standard due; July 15, 2019 – Reply comments from all parties regarding the establishment of a Renewable Portfolio Standard due;
       
    • September 2, 2019 – An Advisors’ Report responding to the parties’ comments, reply comments, as well as an Advisors’ recommendations due;
       
    • October 15, 2019 – Comments regarding the draft RPS due; 
       
    • November 19, 2019 – Reply comments regarding the draft RPS due; 
       
    • February 2020 – The Renewable Portfolio Standard docket filings were review by the Council. The Council anticipated issuing guidance to the parties as to the type of Renewable Portfolio Standard it wished to adopt and set further proceedings to allow the parties to have input into the development of regulations that implements the Council’s desired standards;
       

    RENEWABLE AND CLEAN PORTFOLIO STANDARD

    • March 12, 2020 – The Utility, Cable, Telecommunications, and Technology Committee (“UCTTC”) recommended to the full Council a Renewable Portfolio Standard incorporating a Renewable and Clean Portfolio Standard (“RCPS”). 
       
    • April 15, 2020 – The Council adopted a Renewable and Clean Portfolio Standard (“RCPS”) via Resolution R-20-104 (Resolution and Order Providing the Council’s Guidance Regarding the Development of Renewable Portfolio Standards and Establishing a New Procedural Schedule).
       

    Pertinent RCPS docket deadline dates for are/were as follows:

    • June 5, 2020 – Council Advisors convened a public technical conference with the parties to discuss modifications to the Alternative 2 model (“RCPS”) contained in the Advisors’ Report necessary to comply with the Council’s directions herein; 
       
    • July 6, 2020 – Deadline for Advisors to circulate to the parties a revised version of the draft regulations to implement a Renewable and Clean Portfolio Standard, which shall include (1) a mandatory requirement that ENO achieve 100% net zero emissions by 2040; (2) reliance on RECs purchased without the associated energy for compliance with the standard being phased out over the ten-year period from 2040-2050; (3) ENO has no carbon-emitting resources in the portfolio of resources it uses to serve New Orleans by 2050; and (4) a mechanism to limit costs in any one plan year to no more than one percent (1%) of plan year total utility retail sales revenues; 
       
    • July 29, 2020 – Council Advisors convened a second public technical conference among the parties to discuss the draft regulations to implement a Renewable and Clean Portfolio Standard;
       
    • August 28, 2020 – Deadline for the Advisors to submit draft regulations implementing the Renewable and Clean Portfolio Standard to the Council for its consideration; 
       
    • September 28, 2020 – Deadline for Parties to submit any comments to Council; 
       
    • October 13, 2020 – Deadline for Parties to submit reply comments; 
       
    • December 10, 2020 – Anticipated deadline date the Renewable and Clean Portfolio Standard regulations to be placed on the UCTTC Agenda; 
       
    • March 25, 2021 – City Council adopted Resolution R-19-109 establishing a 30-day comment period on (1) the removal of the carbon dioxide capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies on generating resources and beneficial electrification as eligible methods for compliance with the RCPS and (2) the revised tier system per the proposed Renewable and Clean Portfolio Standard Regulations. 
       
    • April 25, 2021 – Deadline for all parties to submit comments on (1) the removal of the carbon dioxide capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies on generating resources and beneficial electrification as eligible methods for compliance with the RCPS and (2) the revised tier system per the proposed Renewable and Clean Portfolio Standard Regulations per Resolution R-19-109.
       
    • May 20, 2021 – Council adopted Resolution R-21-182 establishing the City of New Orleans’ Renewable and Clean Portfolio Standard.
       
    • November 8, 2021 – Deadline for all parties to submit comments on ENO’s August 18, 2021 Initial RCPS Compliance Plan Covering Compliance Year 2022.
       
    • March 24, 2022 – Council adopted Resolution R-22-145 approving ENO’s Initial Compliance Plan as part of the RCPS.
       
    • August 19, 2022 – ENO submitted its Entergy New Orleans, LLC’s RCPS Compliance Plan Covering Compliance Years 2023 – 2025 (“RCPS Compliance Plan”).
       
    • September 1, 2022 – Council adopted Resolution R-22-392 establishing a procedural schedule regarding ENO’s RCPS Compliance Plan Covering Compliance Years 2023 – 2025 (“PY 13-15”).
       
    • September 19, 2022 – Comments on the RCPS Compliance Plan due.
       
    • October 12, 2022 – Responsive Comments on ENO’s RCPS Compliance Plan Covering the Years 2023 – 2025 due.
       
    • December 15, 2022 – The Council adopted Resolution R-22-525, granting modified approval of ENO’s RCPS Compliance Plan
      • (a) approving ENO’s proposal to purchase unbundled Renewable Energy Credits (“RECS”) as needed to achieve compliance with the RCPS;
      • (b) denying ENO’s request to treat Sewerage and Water Board’s new 230kV Sullivan Substation Electrification as a Qualified Measure;
      • (c) approving ENO’s request to establish the Alternative Compliance Payment (“ACP”) for 2023-2025 at 8.45/MWh;
      • (d) approving the Tier 3 credit calculations for the electric vehicle charging infrastructure (“EVCI”); and 
      • (e) denying ENO’s request for Tier 3 credit calculations for Sewerage and Water Board substation electrification.
         
    • May 1, 2023 – ENO filed it’s annual Compliance Demonstration Report for the 2022 compliance year due May 1st of every year for the previous calendar year (“RCPS Compliance Demonstration Report”); 
       
    • June 8, 2023 – Council adopted Resolution R-23-255 establishing a comment period for the parties to respond to the Compliance Demonstration Report;
       
    • July 3, 2023 – Comments on the RCPS Compliance Demonstration Report due; 
       
    • August 4, 2023 – Reply Comments due on the RCPS Compliance Demonstration Report.
       
    • April 4, 2024 – Council adopted Resolution R-24-120 (1) approving ENO’s RCPS for the year 2022 establishing that ENO is in compliance with the 2022 RCPS requirements of 64% Retail Compliance Load, with not more than 25% compliance through renewable energy credits purchased without associated energy; (2) that ENO did not exceed the Customer Protection Cost Cap; (3) approving ENO’s proposed bill insert of the Compliance Demonstration Report; and (4) approving ENO’s proposal to recover the costs of RECs retired for 2022 compliance in the FAC over/under recovery balance.

     

    ​RCPS Reporting Requirements: 

    • Triennial RCPS Compliance Plan – pursuant to Section 4(e) of the RCPS Rules, upon ENO’s submission of its final Integrated Resource Plan (“IRP”) Report for each triennial IRP cycle, the utility shall develop a three-year prospective RCPS Compliance Plan, including a three-year Banking and Compliance Reserve provision for renewable energy credits (“RECS”), and ENO’s calculation of the alternative compliance payment (“ACP”).  The RCPS Compliance Plan shall be filed at the Council and served upon both the parties to the relevant IRP docket and the parties to Docket No. UD-19-01, with the opportunity for stakeholder comment prior to the Council’s review and approval. 
       
    • Interim RCPS - Within 90 days of the adoption of the RCPS, ENO shall file at the Council and serve on the parties to Docket UD-19-01, with opportunity for stakeholder comment, a proposed Initial RCPS Compliance plan for the interim prior to the conclusion of the next triennial IRP cycle (“Interim RCPS”). 
       
    • May 1st (annually) – Pursuant to Section 4(f) of the RCPS Rules, ENO is required to submit a Compliance Demonstration Report (“RCPS Compliance Demonstration Report”) with the Council regarding the achievement of the RCPS goal for the prior calendar year and its plan for achieving the goal in the current calendar year as part of the three-year RCPS Compliance Plan.  The report shall be served on parties to Docket UD-19-01, with an opportunity for comment period prior to the Council’s issuance of a determination as to whether ENO has achieved the RCPS targets as listed in Section 3 of the RCPS Rules and remained within the Customer Protection Cost Cap of Section 6 of the RCPS Rules for the prior calendar year.