FAQs

Answers to your Frequently Asked Questions ("FAQs") are posted on this page. To ask a question, please use our automated form. FAQs will be posted every Wednesday. FAQs will be posted daily during the week prior to the deadline for submitting Pricing Proposals and Qualification Materials.”

Purchase and Sale Agreement

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FAQ-139:
Our Company is in the process of executing the SREC contracts. However, the listed signatory is unavailable to sign them. How do we proceed?

For questions and issues regarding the execution of the SREC PSAs, please contact directly the EDC concerned. The Solicitation Manager will provide upon request by a Company having received an award under the Program the contact information for the execution of the contract with the relevant EDC.

07/20/2010 in Purchase and Sale Agreement
FAQ-127:
What steps are involved in transferring SRECs from solar projects to EDCs under the SREC Purchase and Sale Agreement? Additionally, who is responsible for each step in the process?

Under the SREC Purchase and Sale Agreement ("SREC PSA"), the owner of the project ("Owner") agrees that the EDC will install, own, and maintain an EDC kilowatt-hour meter (the "SREC Meter"). The SREC meter is the only meter used for registering SRECs under the SREC PSA. The EDC is responsible for monthly meter readings from the SREC Meter. The EDC will also be responsible for uploading the monthly meter readings from the SREC meter to the PJM-EIS GATS system.

In order for the EDC to perform this function, the Owner must complete, execute, and submit PJM's Schedule A – the Generator Owner’s Consent Form ("Schedule A"). Each Owner is expected to set up a Generator Owner account with PJM-EIS GATS and to submit Schedule A to PJM-EIS upon completion of the project.

In Schedule A, the Generator Owner must name the EDC as the account holder to which it is granting authority and permission to create and trade all SRECs associated with the project. Once Schedule A is submitted and approved, PJM-EIS GATS will allow the EDC to perform meter reading uploads as the account holder. SRECs will also be registered to the EDC’s PJM-EIS GATS account, and thus no manual SREC transfers will be required by the Generator Owner.

Schedule A is available here[http://www.pjm-eis.com/documents/documents.html]. Schedule A is to be submitted to:

GATS Administrator
c/o PJM Environmental Information Services, Inc.
955 Jefferson Avenue
Norristown, PA 19403-2497

To set up a Generator Owner account, please visit PJM-GATS EIS here [https://gats.pjm-eis.com/%5Cmymodule%5Cmypage.asp] and click on the link "Not a member? Register here"

The PJM-EIS GATS Administrator may be contacted as follows:

PJM-EIS GATS Administrator
Phone: 610-666-2245
Fax: 610-771-4114
E-mail: info@pjm-eis.com

06/17/2010 in Purchase and Sale Agreement
FAQ-126:
Am I precluded from participating in the SREC-Based Financing Program if I have been awarded a loan by the New Jersey Economic Development Authority? Will the contract that I would sign if I receive an award under the SREC-Based Financing Program automatically assign 50% of the revenue from the SRECs to the New Jersey Economic Development Authority for repayment of the load?

The SREC-Based Financing Program does not prohibit the participation of projects that have been awarded a loan by the New Jersey Economic Development Authority ("NJ EDA") under one of its Clean Energy Solutions programs. It is the responsibility of the bidder to determine whether any rules of the applicable program administered by the NJ EDA would itself preclude or prohibit participation in the SREC-Based Financing Program. It is also the responsibility of the owner of the project to put in place any needed mechanism or agreement outside of the SREC-Based Financing Program to transfer or assign a portion of the revenues from the SRECs to the NJ EDA to repay the loan. The owner of a project that receives an award under the SREC-Based Financing Program is required to sign the SREC Purchase and Sale Agreement ("SREC PSA") without modification. A bidder in the SREC-Based Financing Program is required to accept the terms of the SREC PSA as a condition of having its bid considered. The SREC PSA does not have provisions for the express purpose of the transfer of a portion of the revenue from the SRECs and the SREC PSA cannot be modified or amended in any way (and in particular to effectuate such an assignment or transfer).

06/17/2010 in Purchase and Sale Agreement
FAQ-125:
My solar project is too large to participate in the SREC-Based Financing Program. Where can I find contact information for EDC representatives who may have information regarding other programs through which the EDCs could purchase the SRECs from my project?

We suggest that you begin with the general contact information below:

JCP&L: http://www.firstenergycorp.com/corporate/contact_centers.html
ACE: http://www.atlanticcityelectric.com/contact/
RECO: http://www.oru.com/customerservice/contactus/

06/17/2010 in Purchase and Sale Agreement
FAQ-104:
Does the SREC-Based Financing Program allow the EDC to enter into long term agreements with a locked in price for SRECs from a Project?

Through the SREC-Based Financing Program ("Program"), each Electric Distribution Company ("EDC"), namely ACE, JCP&L, and RECO, is contracting to purchase solar Renewable Energy Certificates ("SRECs") from solar projects. The Owner of a project that receives an award under the Program enters into a standard contract, the SREC Purchase and Sale Agreement (“SREC PSA”). Under the SREC PSA, the Owner receives the price it bid for each SREC generated by the project and transferred to the EDC over the term of the contract. The term of the SREC PSA is specified in the bid and can be from 10 to 15 years. This stable revenue stream provided by the SREC PSA can facilitate independent financing through loans or other financing mechanisms for renewable projects development and installation. Each EDC only contracts for the purchase of SRECs for the term of the SREC Purchase and Sale Agreement, and not for energy or capacity associated with the Project.

03/01/2010 in Purchase and Sale Agreement
FAQ-103:
Is there a commitment to sign the SREC Purchase and Sale Agreement (“SREC PSA”) as part of the Proposal? Are there any penalties for me if my project is selected for an award and I do not sign the SREC PSA?

As part of the Qualification Materials, the Owner of the Project must certify that it accepts all the terms of the SREC Purchase and Sale Agreement (“SREC PSA”) and that the Owner will sign the SREC PSA within five (5) business days of being given a Final Notice of Award by the EDC. The EDC provides this Final Notice to the EDC no earlier than forty-five (45) days after the date of service of the Board Order. There is no provision to release the Owner from its promise to execute the SREC PSA, regardless of the reason.

If an Owner receives an award for a project, a cash deposit is due fourteen (14) days after the New Jersey Board of Public Utilities’ approval of the awards for the solicitation. The Owner is subject to a forfeit of any deposit it has posted if the Project is not completed. There are no provisions in the SREC Purchase and Sale Agreement, the Stipulation, or in the current RFP documents for additional penalties.

All relevant documents can be found on the Documents page of the web site.

03/01/2010 in Purchase and Sale Agreement
FAQ-100:
What happens if, after signing the SREC Purchase and Sale Agreement (“SREC PSA”), the customer site goes out of business and the electric account is closed altogether?

In the case where the Customer is the Seller under the SREC Purchase and Sale Agreement ("SREC PSA"), the Customer going bankrupt or becoming insolvent is an event of default. Upon the Customer (and Seller under the SREC PSA) filing a petition in bankruptcy or otherwise becoming insolvent or unable to pay its debts as they become due, the EDC may then terminate the contract.

The SREC PSA, which can be found on the Documents page of the web site, does not specifically contemplate this situation when the Seller under the SREC PSA is not the Customer. The SREC PSA is clear that a condition precedent of the SREC PSA is that the Customer enter into a net metering arrangement and such an arrangement requires execution of an interconnection agreement. Net metering interconnections contemplate that the generation at the facility be used at the facility and that there is an annual proportionate balance between onsite generation and onsite usage.

To the extent that the load behind the meter ceased to exist and the facility was a generation facility delivering to the grid, it is not clear that the interconnection agreement would remain valid and the generator may be required to comply with the Board’s rules for third party electric power suppliers at N.J.A.C. 14:4., and to execute an amended interconnection agreement. As the Board has previously stated, a customer-generator that produces more than their annual onsite electricity consumption, would likely leave other ratepayers shouldering the cost of local infrastructure improvements. If the generator was able to resolve the situation and qualify to sell power to the grid in the absence of onsite load it would need to market that power through PJM markets as the SREC PSA is clear that the EDC will not purchase energy or capacity. In such a situation, as long the generator has a valid interconnection agreement and the production of the solar facility can be measured using a meter, the SREC purchase and sale agreement could remain in effect.

02/26/2010 in Purchase and Sale Agreement
FAQ-99:
If a home with a solar installation becomes more energy efficient so that the project generates more energy than is consumed on an annual basis, does the EDC purchase the excess energy?

Under the SREC PSA, which can be found on the Documents page of the web site, the EDCs do not purchase any energy or capacity. There are provisions under the net metering regulations that address the issue of compensation for generation in excess of usage. Please see N.J.A.C. 14:4-9 Net Metering and Interconnection Standards for Class I Renewable Energy Systems.

02/26/2010 in Purchase and Sale Agreement
FAQ-90:
Does the Program enable me to sell my SRECs on the open market, but maintain a floor price guaranteed by my electric distribution company (“EDC”) or does the Program require that I agree to be locked into a contract price with the EDC?

Through the SREC-Based Financing Program ("Program"), the EDC contracts to purchase solar Renewable Energy Certificates ("SRECs") from solar projects. The owner of each project approved by the Board would sign a standard contract with the EDC. The standard contract is called the SREC Purchase and Sale Agreement (“SREC PSA”) and can be found on the Documents page of our Web site. Under the SREC PSA, the owner of the Project sells 100% the SRECs generated by the project to the EDC. Please see Paragraph 8A under the Background section of the SREC PSA.

02/26/2010 in Purchase and Sale Agreement
FAQ-85:
If a bid is accepted, at what point may construction begin?

The Program specifies only when construction must be completed and does not specify when construction may begin. Please see the SREC PSA, Appendix A, General Terms and Conditions, Paragraph 3. This Paragraph states that the EDC will have the right to terminate the SREC PSA if the Project is not fully constructed and able to deliver SRECs within one year of the execution of the SREC PSA.

The SREC PSA can be found on the Documents page of the Web site.

02/26/2010 in Purchase and Sale Agreement

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