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State Clean Energy Standard Projected To Cost BPU $2.6 million Next Year

The state-mandated Clean Energy Standard will continue to cost Jamestown Board of Public Utilities customers more in 2022.

On Monday, Kelly Hawkins, BPU finance and customer accounts manager, presented a draft 2022 electric division budget to the board during its monthly meeting. Hawkins said BPU officials are budgeting to pay $2.6 million to the state for renewable energy credits (RECs) and zero emission credits (ZECs) next year.

When the Clean Energy Standard was approved in 2016, state officials created two new mechanisms – RECs and ZECs – to meet the state’s energy goals.

Hawkins said BPU officials had budgeted $2 million to pay for RECs and ZECs this year. However, it is now projected by the end of the year the BPU will be paying $2.4 million for RECs and ZECs. The funds the BPU pays the state for RECs and ZECs are paid for by customers in the fuel adjustment charge.

David Leathers, BPU general manager, said the BPU’s payment to the state for RECs and ZECs continues to grow. According to a March 2019 article in The Post-Journal, the BPU was expected to only pay $1.6 million in RECs and ZECs in 2019.

Leathers said BPU officials requested to state officials to be allowed to create a separate line item in a customer’s bill to show how much they are paying for RECs and ZECs each month. However, the state denied the separate line item request and RECs and ZECs are part of the fuel adjustment charge. Also, water not being considered a renewable energy in the Clean Energy Standard is a challenge for the BPU, Leathers said.

“This is nothing new, but it continues to grow,” he said about the increased RECs and ZECs payment the BPU makes to the state.

Hawkins also said in her electric budget presentation that BPU officials are planning to ask the state Public Service Commission for a rate increase of 1.9% in 2024. The last rate increase approved by the Public Service Commission happened in 2016 when the charge for customers increased by 1.69%, which increased BPU revenues annually by more than $800,000.

In other business:

¯ The board approved the 2022 wastewater division budget, which includes a 3% rate increase. The board also approved the water division budget, with no rate increase for next year.

¯ The board also approved two Clean Energy Rebate Programs for 2022. The new 2022 rebate program will focus on air source heat pumps and heat pump water heaters. Cold-climate air source heat pumps can replace existing heating and cooling systems or provide supplemental temperature control in targeted areas of a home or business. Air source heat pumps consume far less energy than electric resistance, propane or oil heating systems and distribute heat evenly inside your home. During warmer months, the pump provides cooling by pulling heat out of your interior space. Air source heat pumps can be used to heat or cool single rooms and whole homes and are especially helpful in buildings and homes without ductwork.

Consortium for Energy Efficiency (CEE) tiers one, two and three air source heat pumps and heat pump water heaters qualify for the BPU program as do BPU service class one and two customers. Before purchase and installation, customers are advised to confirm valid qualifications of a project by contacting BPU Energy Efficiency Coordinator Dan Reynolds at 661-1646 or dreynolds@jamstownbpu.com.

Air source heat pump rebates are based on the cooling tonnage of the compressor unit. To compute the tonnage, one must divide the BTU rating of the unit by 12,000. The rebate amount is then multiplied by this calculated “quantity.” The BPU reserves the right to inspect all installations to verify the accuracy of the rebate applications.

To receive the rebates, participating BPU electric customers must submit a Heat Pump Rebate Application with the original purchase receipt and original Energy Guide label in person or by mail to: BPU Customer Service, P.O. Box 700, 92 Steele St., Jamestown. Rebate applications in 2022 will be available in the customer service office and on the BPU website: jamestownbpu.com by clicking on the yellow “Clean Energy” tile.

Upon verification, property owners will receive a check for the rebate amount. If a customer account is in arrears, a portion or all of the rebate may be applied to the past-due account. The rebate limit for heat pumps is $5,000 per year per property owner. Rebates are available for the purchase of new products made between Jan. 1, 2022, and Dec. 31, 2022.

The BPU’s second Clean Energy Rebate Program in 2022 is the continued Electric Vehicle Charging Equipment Rebate Program.

The program aims to encourage electric industrial and commercial customers such as hotels and office buildings to install electric vehicle charging equipment. The program is open to all BPU Service Class two, three and six customers. Customers are limited to $25,000 per year under the program and may apply for rebates for up to four chargers in a year.

An interested customer should first consult with a certified electrical contractor to verify that the electric service has the capacity to support the chosen electric vehicle charger. Once capacity is confirmed, a site visit should be scheduled with the BPU Energy Efficiency Coordinator who will assist in completing the rebate pre-approval.

Level 2 chargers may be networked or non-networked and must have CHAdeMO or J1772 connectors or both. Level 3 chargers must be networked and have CHAdeMO or SAE combo connectors or both.

Chargers must be available to a businesses’ customers, employees or the public and must be operational for a minimum of five years.

Rebates are for equipment only and are limited to equipment costs. The customer is responsible for all costs associated with installing the charger, including, but not limited to, labor, material and any permits that may be applicable.

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