In addition to the duties of the administrator set forth elsewhere in this chapter, each administrator shall have the duties and obligations set forth in this regulation.
A. Each administrator shall establish and maintain a segregated escrow account, reserve account and GATS account for each qualified offshore wind project that appoints it to be the administrator.
B. The administrator shall send an invoice to each OREC purchaser on a quarterly basis. The first invoice shall be issued by the administrator within the first 5 business days of the calendar quarter commencing in April of the initial year in which the offshore wind energy RPS takes effect. Thereafter, each invoice shall be delivered by the administrator to each OREC purchaser within the first 5 business days of the beginning of each calendar quarter, during the term of an OREC price schedule. Each invoice will require an OREC purchaser to pay an amount that is equal to the product of:
(1) The OREC price for the relevant project for the relevant year within the term of its OREC price schedule, and
(2) The OREC purchaser’s final electricity sales data in megawatt-hour terms computed as (A) the sum of (a) the final electricity sales data in megawatt-hour terms reflective of applicable adjustments and reconciliations conducted pursuant to the PJM settlement process for the sales period immediately preceding the invoice date corresponding to those adjustments and reconciliations plus (b) in the case of electricity suppliers that have retail electric customers that purchase “behind the meter” generation (as defined by PJM), the final electricity sales to those customers as measured by the electricity suppliers, minus (B) sales specifically excluded under Public Utilities Article, §7-703, Annotated Code of Maryland, and
(3) The offshore wind energy RPS, expressed as a percentage, determined by the Commission under §A of Regulation .07 of this chapter; and
(4) The fraction equal to the number of ORECs that the relevant project is authorized to sell in that year divided by the total number of ORECs authorized to be sold by the Commission for all projects in that year.
C. Within 2 business days of the reconciliations described in §B(2) of this regulation being conducted and made available by PJM, each OREC purchaser shall calculate and deliver to the administrator the final electricity sales data necessary to satisfy §B(2) of this regulation, together with a copy of the relevant PJM report evidencing the relevant electricity sales (other than in respect of the “behind the meter” sales to retail electric customers described in §B(2) of this regulation which shall be separately provided to the administrator by the relevant OREC purchaser) and its methodology for calculating its final electricity sales data that complies with §B(2) of this regulation.
D. Each OREC purchaser shall pay the invoice issued to it under §B of this regulation to the administrator for deposit into the escrow account within 10 business days of the date of that invoice.
E. Electricity Supplier Information—Updates to the Administrator’s Records.
(1) No later than 15 days before the end of each calendar quarter during which the offshore wind energy RPS is in effect, each electric company shall provide to each administrator the name, address, email address and other related information of each electricity supplier in its territory and updates as applicable.
(2) Upon receipt of the contact information for the OREC purchasers from the electric companies, the administrator shall:
(a) Determine whether there are any new OREC purchasers since the end of the previous calendar quarter;
(b) Gather the information it requires to issue an OREC invoice under §B of this regulation; and
(c) Issue OREC invoices in accordance with §B of this regulation to any new OREC purchasers.
F. Each administrator shall provide to each electricity supplier its electronic funds transfer information, and otherwise coordinate with electricity suppliers (or their designees) to permit electronic transfers of OREC purchase payments. Each electric company shall provide electronic funds transfer information to the administrator to enable it (or its designee), to make electronic transfers of payments contemplated by §G(4) of this regulation.
G. On each date that the administrator is required to pay the qualified offshore wind project for the amounts invoiced under Regulation .10 of this chapter, the administrator shall withdraw the amounts from its escrow account and apply those amounts in accordance with §G(1) through (4) of this regulation (and in the following order of priority):
(1) Prior to making the transfers specified in §G(2), (3) and (4) of this regulation, apply all amounts on deposit in the escrow account to pay the project an amount up to the aggregate balance remaining unpaid under any previously issued OREC invoices that have been approved by the administrator under Regulation .10E of this chapter (less the administrator’s pre-agreed periodic fees and documented reasonable third-party expenses (including any costs and expenses invoiced to the project by or on behalf of the Commission in connection with Regulation .09K of this chapter), any amounts required to be deducted pursuant to Regulation .13C and D of this chapter and any amounts required to be deducted pursuant to Regulation .16E of this chapter);
(2) After giving effect to §G(1) of this regulation, apply all amounts remaining on deposit in the escrow account to pay the project amounts due on that payment date under an OREC invoice issued by that project pursuant to Regulation .10 of this chapter;
(3) After giving effect to §G(1) and (2) of this regulation, transfer to the reserve account all amounts remaining in the escrow account up to an aggregate amount equal to six months average OREC projected revenue for the concurrent calendar year; and
(4) Subject to §H of this regulation, and after giving effect to §G(1), (2) and (3) of this regulation, but no earlier than the 30th day of the immediately following calendar year, transfer all amounts remaining in that escrow account to the electric companies, in accordance with the relative market share of those companies (in megawatt hours), for subsequent allocation, in accordance with Regulation .14 of this chapter, to its retail electric customers (excluding sales to industrial process load and sales to agricultural land owners that an electricity supplier has certified to the Commission pursuant to §E of Regulation .06 of this chapter).
H. In the event of any shortfall in any of the payments required to be made on any payment date under each of §G(1), (2), and (3) of this regulation, that shortfall shall be paid on the next monthly payment date from funds subsequently deposited in the escrow account, in the order of priority set forth in §G of this regulation until the shortfall is eliminated, prior to applying any funds towards the payment set forth in §G(4) of this regulation.
I. Each project, together with its administrator, may apply to the Commission for a modification or variation to the above order of payment in the event that it is determined to be commercially required by investors in or financiers to the project but, subject to §H of this regulation, in no event shall that modification or variation result in the refund described in §G(4) of this regulation being made to or on behalf of retail electric customers any less frequently than annually.
J. Subject to the priority of payments set forth in §G of this regulation and any variations as may be agreed under §I of this regulation, after project COD has occurred and so long as the administrator has approved the OREC invoice under §E of Regulation .10 of this chapter, the administrator shall disburse payment in full to the relevant qualified offshore wind project for its OREC invoice issued under Regulation .10 of this chapter regardless of whether OREC purchasers have paid on-time or in-full. Funds held in the reserve account shall be available for that payment in the event that there are insufficient funds in the escrow account for that purpose.
K. Each administrator may invest or reinvest any or all monies in the reserve account in permitted investments.
L. Each administrator shall issue a late-payment notice to a delinquent OREC purchaser within 3 days past the payment due date. If payment is not received within ten days after the late-payment notice, that administrator shall refer the matter to the Commission, notifying the relevant qualified offshore wind project. All late payments shall incur a late-payment fee as required by §M of this regulation. All late-payment fees shall be paid to the administrator for deposit into the escrow account and applied in accordance with §G of this regulation.
M. Any late payment fee shall be computed from the date on which payment under an invoice delivered by an administrator to an OREC purchaser under Regulation .11B of this chapter is due until the date of payment at an average prime rate for each calendar quarter on all amounts due and unpaid. The applicable average prime rate for each calendar quarter shall be the arithmetic mean, to the nearest one-hundredth of one percent, of the prime rate values published in the Federal Reserve Bulletin, or in the Federal Reserve’s “Selected Interest Rates” (Statistical Release H. 15) (or its replacement publication, if any), for the fourth, third, and second months preceding the first month of the calendar quarter. The late payment fee required to be paid under this regulation shall be compounded quarterly.
N. The administrator shall provide quarterly reports to the Commission of any delinquent OREC purchaser and the number of days that payment(s) from any delinquent OREC purchaser have been or historically overdue.
O. Any ORECs not transferred pursuant to Regulation .10H of this chapter as a result of failure by one or more electricity suppliers to pay its invoice on its due date, shall be held in the administrator GATS account for transfer to the account of any OREC purchaser that makes payment in full beyond the date that payment is due in respect of any calendar quarter. Any ORECs for the applicable calendar quarter that have not been transferred after 18 months as a result of failure by one or more electricity suppliers to pay its invoice on its due date, shall be sold by the administrator as a Tier 1 renewable source with revenues for those sales deposited into the escrow account, unless otherwise instructed by the Commission.