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Process Overview

*NJ Solar Renewable Energy Market Transition Straw Proposal (May 25, 2007)

Transitioning the NJ Solar Market from Rebats to Market Based Incentives: Analysis of Rate Payer Impacts of Proposed Alternatives

By Order dated January 19, 2007, Docket No. EO06100744, the Board established a stakeholder process and tentative schedule regarding alternative compliance payment (ACP) and solar alternative compliance payment (SACP) levels. Subsequent to issuance of the January 19th Order, Summit Blue was engaged to perform an independent economic analysis of the transition options that have been proposed by various stakeholders.

OCE released Summit Blue's draft report "An Analysis of Potential Ratepayer Impact of Alternatives for Transitioning the New Jersey Solar Market from Rebates to Market-Based Incentives", dated April 24, 2007 (attached). This report is posted on the Board's website and the Clean Energy Program website and has been circulated through various stakeholder lists. Summit Blue's report dated March 15, 2007 (attached), "Preliminary Review of Alternatives for Transitioning the New Jersey Solar Market from Rebates to Market-Based Incentive" has also been posted and circulated in a similar manner These two reports assessed various attributes of the proposed transition options.

Summit Blue's draft report dated April 24, 2007 provides significant and substantial information regarding the impacts on ratepayers of the various proposed transition options and other factors that should be considered by the Board in establishing ACP and SACP levels. However, since the development of ACP and SACP levels is in large part a function of the transition option selected, OCE is proposing a modified stakeholder process to allow additional input on transition options that take into consideration the substantial analysis performed by Summit Blue (attached).

The proposed solar stakeholder schedule will allow for additional stakeholder input into the development of a Staff straw proposal that will be available prior to the Board Hearing dates.