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Clarifying question regarding REC revenue - does this term refer to actual revenue from the sale of a REC, or to the proxy value for RECs retired for compliance with mandatory RPS requirements?
When evaluating projects and presenting them to regulators for approval, the Company typically reflects REC value under multiple scenarios. These may include an estimated market value for RECs if sold, as well as a proxy value for RECs retired for compliance purposes. In some cases, this proxy value reflects the avoided cost to customers associated with not having the REC available for compliance, such as the cost of procuring replacement RECs or paying an alternative compliance or deficiency amount.