Statewide energy supply charge added to your electric utility account

Dear Customer:

On August 1, 2016, the New York State Public Service Commission (“NYPSC”) issued its Order Adopting a Clean Energy Standard[1].  This Order requires all utilities and energy service companies (ESCOs) supplying electricity in New York State, including BlueRock Energy, to purchase Zero Emission Credits (“ZECs”) in order to subsidize the Fitzpatrick, Ginna and Nine Mile I&II nuclear power plants all owned by Exelon Corporation, and pass the charges through to all New York State energy consumers. In addition, the Renewable Energy Standard (RES) requires every utility and ESCO to procure renewable energy credits (RECs) associated with the new renewable energy resources for their customers. These charges will be mandatory effective April 1, 2017[2].  BlueRock has no control over the price we will have to pay for the ZECs and we cannot opt-out of participation, as we are under regulatory Order to do so.

In compliance with NYPSC regulations, this letter is to notify you that your rate for electric supply will increase starting April 1, 2017. The increase to your rate, in the amount of $0.0035/kWh, is only the amount required to recover this year’s price of ZECs and RECs.  Please note that there are currently a number of ongoing proceedings challenging the legality of the NYPSC-imposed ZECs.  In the event that these legal challenges are successful resulting in the reduction (or elimination) of ZEC charges, BlueRock will immediately reduce (or eliminate) the ZEC charge on your electric supply invoice.

As always, we are happy to discuss your account with you, and answer any questions you may have regarding the above mentioned ZEC charge.  Please give our Customer Experience Team a call at 877-280-4909 and we will gladly assist you. We value your business and your input as essential to creating a long-term energy supply partnership

Very truly Yours,

Philip R VanHorne
President & CEO BlueRock Energy, Inc

[1] To view the full Order, go to http://www.dps.ny.gov/, click on “Search” in the blue bar at the top of the page, and enter Case Number: 15-E-0302 in the Search Box.

[2] The ZECs were passed by the NYPSC at the Governor’s request because Exelon demanded state-mandated public funding as a condition for purchasing the Fitzpatrick plant for $110 million – a sale which is pending but assumed to be finalized at any time. These payments to Exelon at $600 million per year will continue for the next 12 years, a total of $7.8 to $10 billion from New York residents, depending on the ZEC price each year. This pass-through charge will be built into your supply charges—regardless of who supplies your energy, an ESCO or your Utility. The price of the ZECs is determined by NYSERDA, a non-governmental association that the NYPSC gave authority to administer this charge.

 

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