20.61.06.08

.08 Establishing the OREC Purchase Obligation and Replacement OREC Price Schedule.

A. The Commission shall establish the OREC purchasersí obligation to purchase ORECs for each year that the offshore wind energy RPS is in effect on a forward-looking basis and at least 3 years in advance of the calendar year in which that OREC purchase obligation is to take effect to allow OREC purchasers to reflect the costs of ORECs in retail prices offered to its customers.

B. Each OREC purchaser shall meet its OREC purchase obligation by purchasing the necessary number of ORECs from one or more escrow accounts established under this chapter.

C. If, pursuant to Regulation .02M(1)(a) of this chapter, a project has provided a two-part OREC price for its proposed OREC price schedule, then as soon as possible following the execution of its Interconnection Service Agreement, and if the project determines that any change between the Commissionís estimated cost of transmission upgrades and PJMís actual upgrade cost as specified in the executed Interconnection Service Agreement requires that the second component of the OREC price be adjusted upward or downward, the project shall submit to the Commission a replacement OREC price schedule that reflects the final OREC price for each calendar year of the OREC price schedule, as adjusted in compliance with the limitations set forth in Regulation .02M(1)(a) of this chapter, accompanied by an explanation of the requested adjustment, and this replacement OREC price schedule shall deemed to be the OREC price schedule for the project for the term of its OREC order.

D. In assessing whether the adjusted OREC price schedule submitted by the project under §C(1) of this regulation complies with the limitations set forth in Regulation .02M(1)(a) of this chapter, the Commission shall use in its determination the same factors and economic or financial model (including any numerical inputs) used by it at the time it evaluated and approved the projectís application other than the change in PJMís actual transmission upgrade cost described above.