New Jersey Class I & Class II REC » Specifications

New Jersey Class I & II Renewable Energy Certificates (RECs) are tradable instruments which satisfy state instituted regulatory compliance. Compliance RECs are certificates that represent the environmental attributes of renewable energy. One REC is equal to one Megawatt Hour (MWhr) of renewable energy, in which meets the New Jersey Renewable Portfolio Standard (RPS) pursuant to N.J.A.C. 14:14-8 verified and qualified by the Board of Public Utilities (BPU).

SREC State Eligibility: New Jersey Only

Energy Year: June 1 - May 31

Tracking System: PJM-GATS

REC Lifespan:

3 Years: A 2011 REC can be counted towards 2011, 2012, or 2013 New Jersey Renewable Portfolio Standard (RPS)

Alternative Compliance Payment (ACP):

New Jersey's ACP is $50 per MWhr for Class I and II RECs

Class I Technologies:

Solar technologies, photovoltaic technologies, wind energy, fuel cells powered by renewable fuels, geothermal technologies, wave or tidal action, methane gas from landfills or a biomass facility, provided that the biomass is cultivated and harvested in a sustainable manner

Class II Technologies:

Resource recovery facility (subject to qualifications) and small hydro power facility (less than 30MW)
Transfers:

Buyers and sellers of SRECs on Flett Exchange will transfer their certificates on the PJM-GATS Website. When an SREC is traded on the Flett Exchange Platform the buyer sends their payment to Flett Exchange, LLC within 3 business days. The seller immediately transfers the SRECs to "Flett Exchange LLC" on the PJM-GATS platform. Upon receiving the funds from the buyer Flett Exchange makes the funds available to the seller via check and transfers the SRECs to the buyers PJM-GATS account.

Individual and Small Corporate Sellers:

All participants in the SREC market on Flett Exchange have an account in their name. Buyers deposit funds for their SREC purchases with Flett Exchange, LLC. After a deal is completed on the Flett Exchange platform the seller transfers the SRECS to Flett Exchange account within the PJM-GATS website. Flett Exchange will then simultaneously transfer the SRECS to the buyers account on the PJM-GATS website and transfer the appropriate funds from the buyers escrow account at Flett Exchange to the sellers escrow account at Flett Exchange. The Seller can then request a check for the funds.

Flett Exchange customizes buy orders for electric generators required to fulfill RPS requirements. Flett Exchange charges buyers a $5 commission per SREC and acts as a direct representative for electric generators. Once the bulk order is filled Flett Exchange will transfer SRECs to the buyer in one completed contract.

Agreement:

Buyers and sellers agree to abide by the Flett Exchange User Agreement for Unregulated Forward Contracts. Buyers and sellers must log into the Flett Exchange platform with their user name and password and click the "I AGREE" tab for the user agreement. All transfers on Flett Exchange are bilateral in nature and Flett Exchange Does Not Guarantee performance of either party.

Seller shall promptly notify Purchaser of any change in circumstance, which causes the foregoing representation and warranty to no longer be true, including providing a copy of any notice received from the governing entity or otherwise indicating or determining that the Transferred SRECs are no longer RPS-eligible (Non-Eligible SRECs). Purchaser shall not be obligated to pay for Non-Eligible SRECs, and Seller shall be responsible to reimburse Purchaser for any payments made to Seller for Non-Eligible SRECs.

All buyers of SRECs must be aware of the nature of the Certificates. Certificates retire and are worthless at the end of the True-Up period. Buyers of Certificates may lose some or all of the value of the Certificate.

This is not a solicitation to buy or sell SRECS.

Contact your accountant before buying or selling SRECS.

Flett Exchange charges a commission of $2.50 cents per SREC for customers who execute on the Flett Exchange Internet Trading Platform.