Create appendixc1.md

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appendixc1.md

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+## Appendix C-1: Michigan Renewable Energy Certification System Imports
+
+MIRECS issues RECs and in some cases Incentive Renewable Energy Certificates (IRECs) for generation which meets the following requirements:
+
+1. Two renewable energy Certificates for each megawatt hour of electricity from solar power.
+2. 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system, other than wind, at peak demand time as determined by the commission.
+3. 1/5 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system during off-peak hours, stored using advanced electric storage technology or a hydroelectric pumped storage facility, and used during peak hours.
+4. 1/10 renewable energy credit for each megawatt hour of electricity generated from a renewable energy system constructed using equipment made in this state as determined by the commission.
+5. 1/10 renewable energy credit for each megawatt hour of electricity from a renewable energy system constructed using a workforce composed of residents of this state
+
+M-RETS defines a REC as 1 MWh of renewable energy. As a result, M-RETS will realign the MIRECS REC definition with M-RETS when a REC is exported. MIRECS will use the original ratio of RECs to IRECs from the original facility and vintage and apply it to the quantity of RECs to be exported. The ratio will effectively reduce the RECs to be exported ensuring the export quantity represents 1 MWh. This will work in the following way:
+
+When an import is initiated, MIRECS will display the total number of MWhs being exported and the corresponding number of MIRECS RECs being retired. The amount of MWh exported will be equal to the total MIRECS RECs selected for export multiplied by the corresponding MWh-to-REC ratio. For example, an Organization selects to export 50 RECs with a MWh-to-REC ratio of 0.5. In this case 50 RECs will be retired and 25 MWh will be processed for import into M-RETS. The table below shows the process for a variety of different ratios:
+
+| **Scenario** | **MWh of Generation** | **MIRECS RECs**** Issued **|** MIRECS IRECs ****issued** | **MWh-to-RECs ratio** | **RECs/IRECs selected for export from MIRECS** | **Import RECs issued in MRETS** | **RECs/IRECs remaining in MIRECS** | **Equivalent MWh's of generation remaining in MIRECs** |
+| --- | --- | --- | --- | --- | --- | --- | --- | --- |
+| **1** | 500 | 500 | 125 | 0.8 | 500 | 400 | 125 | 100 |
+| **2** | 1000 | 1000 | 250 | 0.8 | 1000 | 800 | 250 | 200 |
+| **3** | 500 | 500 | 250 | 0.67 | 500 | 333 | 250 | 167 |
+| **4** | 1000 | 1000 | 500 | 0.67 | 1000 | 667 | 500 | 333 |
+| **5** | 500 | 500 | 500 | 0.5 | 500 | 250 | 500 | 250 |
+| **6** | 1000 | 1000 | 1000 | 0.5 | 1000 | 500 | 1000 | 500 |
+| **7** | 500 | 500 | 1000 | 0.33 | 500 | 167 | 1000 | 333 |
+| **8** | 1000 | 1000 | 2000 | 0.33 | 1000 | 333 | 2000 | 667 |
+
+
+
+The end result of this process, for example, is that for scenario 1 above, a total of 525 Certificates are in circulation among the various tracking systems: 400 RECs in M-RETS and 125 RECs in MIRECS. The 400 RECs in M-RETS represent 400 MWh's of generation. The 125 RECs remaining in MIRECS still carry the MWh-to-REC ratio of 0.8 and therefore still represent only 100 MWh of generation. This is the desired result as the Certificates are based on 500 MWh of generation.
+
+By applying a ratio that represents the proportionate amount of actual MWh of renewable generation all RECs (including IRECs) in MIRECS have the same value. Any REC or IREC can be exported to M-RETS because it will be "discounted" to reflect the additional Michigan incentive Certificates created from the MWh of generation. Ultimately, the information used for import by the tracking systems will be MWh of renewable generation. This will allow each tracking system to apply whatever types of incentives are desired, if any, to the various MWh imported.