BioMAT Tariff definition
Examples of BioMAT Tariff in a sentence
The BioMAT Tariff dictates that a project will be attributed to the applicant if an applicant or its affiliates have any ownership interest in the project (i.e. the applicants are affiliated).8/ The intention of the affiliate rules is to ensure that no single person or entity can exercise market power and drive up prices.
PG&E is concerned that current BioMAT Tariff rules maintain a significant opportunity for projects to decide together to hold out forhigher than necessary prices (or, when high prices are locked in, slowly add projects to the queue, and accepting the current price, to avoid hitting the market depth threshold and triggering price decreases) at the expense of IOU customers.Finally, Assembly Bill (“AB”) 1923 significantly changed the project eligibility rules for participation in BioMAT.
Currently, three of the four pricing category queues in the BioMAT program include several projects that share family members and/or common developers and yet, per the BioMAT Tariff, are counted as unaffiliated projects because the applicant entity does not have any direct ownership interest in the other projects.
The new phase will allow the Commission to comprehensively consider the broad market issues and malfunctions in the BioMAT program that have arisen since the creation and implementation of the program.The BioMAT Program is currently experiencing both market malfunction and a high risk of manipulation due to flaws with the pricing rules and structure of the BioMAT Tariff.
BioMAT-eligible resources have substantial above market costs at a time when PG&E’s customers have no need for Renewable Portfolio Standard (“RPS”) resources, capacity or energy due to declining bundled customer retail sales.As an administrator of BioMAT, PG&E has authority under the BioMAT Tariff to suspend the program when evidence of market manipulation or malfunction exists.
Likewise, the Commission allowed the IOUs to suspend the BioMAT program.Authority to suspend the program is set forth in the Special Conditions enumerated in the BioMAT Tariff, which provide, in pertinent part:PG&E may file a motion with the CPUC to suspend BioMAT when evidence of market manipulation or malfunction exists.
Section H.4 of the BioMAT Tariff allows contract price adjustments only if there are projects from at least three different applicants in the queue.
All projects must promptly notify PG&E if the project no longer meets the eligibility requirements for the BioMAT program (See Section 5.2(h) of the BioMAT Tariff).
Information concerning BioMAT program elements contained on PG&E's website is not meant to provide a substitute for a careful review of the BioMAT Tariff and the BioMAT PPA (together, the "BioMAT Documents").
PG&E urges the Commission to reject further weakening of market depth in the BioMAT Tariff to protect customers from excessively high costs driven by anticompetitive behavior.