2025 Compliance Year

This page includes information on the 2025 compliance year under the Clean Energy Standard (CES). It also includes REC and ZEC activities that affect Load Serving Entities (LSEs) during and after the 2025 compliance year, which differs for RECs and ZECs. See below for more information.

Renewable Energy Standard 

In accordance with the Order Modifying Clean Energy standard Tier 1 Obligation [PDF], filed on April 20, 2023, effective January 1, 2025, the Renewable Energy Standard (RES) obligation for LSEs will transition to a Load Share Approach.

NYSERDA and Staff will calculate a uniform per MWh rate that will be applied to each LSE’s actual wholesale load to calculate their Tier 1 Monthly Obligation Payments, with a January 1st through December 31st compliance year starting January 1, 2025.

The dollar per MWh rate to be paid by each LSE for the compliance year will be calculated according to the following formula:

LSE Tier 1 Rate = NYSERDA’s Forecasted Net total cost to procure Tier 1 RECs from the Large-Scale Renewable RFPs, plus the cost of VDER Tier 1 RECs, plus any Commission approved adder/ Forecasted statewide electric load.

An LSE’s monthly Tier 1 payment obligation will be calculated using the LSE Tier 1 REC Rate, the number of MWh the LSE served using the NYISO Version 1 load data, a Load Modifier Rate, and a VDER Compensation Factor, according to the following formula:

LSE Tier 1 monthly payment obligation = (LSE Tier 1 REC Rate) x (LSE’s Version 1 MWh) x (Load Modifier Rate) x (VDER Compensation Factor)

It should be noted that the Load Modifier Rate and the VDER Compensation Factor only apply to a subset of LSEs. NYSERDA will work directly with the effected LSEs.

Process

NYSERDA will utilize Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s Tier 1 Monthly Obligation Payment to NYSERDA. NYSERDA typically receives load data from the NYISO on or around the 15th day of the following month. NYSERDA will then determine the LSE’s Tier 1 Monthly Obligation Payment to NYSERDA using the formula specified above and issue an invoice. LSEs will submit their payment to NYSERDA within 15 days from the issuance of the invoice.

Reconciliation

The updated "pay-as-you-go" process should reduce the magnitude of the reconciliations but will not eliminate the need for a reconciliation process. The reconciliation process will continue to be based on the LSE’s load using NYISO Version 2 data, the total load served by the LSEs and the number of Tier 1s actually purchased by NYSERDA from the Large-Scale Renewable RFPs, plus the cost of VDER Tier 1 RECs.

In summary, NYSERDA will utilize the following process to reconcile the funds necessary to purchase the Tier 1s and account for collections from the LSEs.

1. NYSERDA will determine the actual dollar per MWh charge based on the total dollars expended by NYSERDA to purchase Tier 1s.
2. NYSERDA will sum the total load served by the LSEs using the NYISO Version 2 load data including load modifiers.
3. Steps 1 and 2 will be used to determine the final Tier 1 Rate.
4. This final TIER 1 Rate will be applied to the total load associated with each LSE, as recorded in NYGATS, and provide the LSEs their Tier 1 obligation for the compliance year.
5. NYSERDA will reconcile the payments received from each of the LSEs against the Tier 1 obligation.

Please note: this is the only method of RES Compliance. It is not possible to Self-Supply Tier 1 RECs for RES Compliance.

Tier 1 Voluntary Sale

In accordance with Order Modifying Clean Energy standard Tier 1 Obligation [PDF] filed on April 20, 2023, NYSERDA will sell Tier 1 RECs to voluntary Purchasers using a hybrid approach for the voluntary sales including long-term contracting, an annual REC Presale and an annual REC Resale.

For anyone interested, please see the 2025 Voluntary Sales page for more details.

Please note: Tier 1 RECs purchased through the Voluntary Tier 1 REC Sale cannot be used for RES Compliance.

ZEC Compliance

In accordance with the Final Zero Emissions Credit Implementation Plan [PDF], filed on October 21, 2019, a uniform wholesale per MWh charge will be applied to each LSE’s actual wholesale load to calculate their monthly ZEC obligation payments.

Each year, NYSERDA will determine, in collaboration with Staff, the dollar per MWh charge (LSE ZEC Rate) owed by each LSE for the next compliance year of the ZEC program. The dollar per MWh charge to be paid by each LSE for the compliance year will be calculated according to the following formula:

LSE ZEC Rate = NYSERDA’s maximum total cost, including any approved administrative adder, to procure ZECs / Forecasted statewide electric load

An LSE’s monthly ZEC payment obligation will be calculated using the LSE ZEC Rate, the number of MWh the LSE served, using the New York Independent System Operator’s (NYISO) Version 1 load data and a Load Modifier Rate according to the following formula:

LSE ZEC monthly payment obligation = (LSE ZEC Rate) x (LSE’s Version 1 MWh) x (Load Modifier Rate)

Process

The new “pay-as-you-go” payment methodology relies on an LSE’s monthly wholesale load requirements for their retail customers. NYSERDA will utilize Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s monthly payment to NYSERDA.

NYSERDA typically receives load data from the NYISO on or around the 15th day of the following month. NYSERDA will then determine the LSE’s ZEC monthly payment obligation to NYSERDA using the formula specified above and issue an invoice. As directed by the Public Service Commission in the Order Approving Zero Emissions Credit Implementation Plan with Modifications, LSEs will submit their payment to NYSERDA within 15 days from the issuance of the invoice.

Reconciliation

The updated "pay-as-you-go" process should reduce the magnitude of the reconciliations but will not eliminate the need for a reconciliation process. The reconciliation process will continue to be based on the LSE’s load using NYISO Version 2 data, the total load served by the LSEs and the number of ZECs actually purchased by NYSERDA.

In summary, NYSERDA will utilize the following process to reconcile the funds necessary to purchase the ZECs and account for collections from the LSEs.

1. NYSERDA will determine the actual dollar per MWh charge based on the total dollars expended by NYSERDA to purchase ZECs.
2. NYSERDA will sum the total load served by the LSEs using the NYISO Version 2 load data including load modifiers.
3. Steps 1 and 2 will be used to determine the final ZEC Rate.
4. This final ZEC Rate will be applied to the total load associated with each LSE, as recorded in NYGATS, and provide the LSEs their ZEC obligation for the compliance year.
5. NYSERDA will reconcile the payments received from each of the LSEs against the ZEC obligation.

Trainings and Webinars

NYSERDA will host periodic webinars to update LSEs on CES obligations, new procedures, and associated new NYGATS capabilities. Please check back for webinar details.