FAQs for Load Serving Entities

1. My Load Serving Entity (LSE) is new to the New York Market. What do we need to do?

   The LSE should contact NYSERDA at [email protected]. NYSERDA shall provide an overview of the program and LSE requirements. NYSERDA will also provide a link so the LSE may accept the Commission approved Tier 1 LSE Agreement. LSEs should reach out to NYSERDA prior to serving load in New York.

2. How is an LSE Tier 1 Compliance Obligation calculated?

   The obligation of each LSE will be determined based on the actual load served by that LSE from January 1 through December 31 (Tier 1 Compliance Period). The Department of Public Service has stated that load will be calculated without losses (wholesale).

   Final load data will be available approximately five months after end of the Tier 1 Compliance Period (approximately May 15). Once final load data for the Tier 1 Compliance Period has been reported to the New York Generation Attribute Tracking System (NYGATS), each LSE’s Tier 1 obligation will be determined using each LSE’s actual load share ratio (the LSE’s load during the Tier 1 Compliance Period divided by the total New York State load during the Tier 1 Compliance Period). To meet its compliance obligation, the LSE must acquire Tier 1s from NYSERDA in an amount that equals its load share ratio multiplied by the total number of Tier 1s purchased by NYSERDA during that Tier 1 Compliance Period.

3. How is the initial Tier 1 Rate determined?

   Each year, NYSERDA will determine, in collaboration with Staff, the dollar per MWh charge (LSE Tier 1 Rate) owed by each LSE for the next compliance year of the Tier 1 program.

   The dollar per MWh rate to be paid by each LSE for the compliance year would 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.

4. How will NYSERDA inform LSEs of the initial Tier 1 Rate? When will NYSERDA inform LSEs of the initial Tier 1 Rate?

   NYSERDA will email LSEs of the annual Tier 1 rate November 1st, prior to the start of a new compliance year. NYSERDA will also update the Clean Energy Standard website to reflect the new compliance year’s Tier 1 Rate.

5. How did NYSERDA calculate each LSE’s Monthly Tier 1 payment amount?

   NYSERDA utilizes 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 would then determine the LSE’s Tier 1 Monthly Obligation Payment. 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.

   As described above, the LSE’s actual Tier 1 Compliance Obligation will be based on the LSE’s actual load during the Tier 1 Compliance Period and the total number of Tier 1s generated in that compliance period.

6. What are the terms and conditions of the Tier 1 Agreement?

   In accordance with the Phase 5 Implementation Plan [PDF] filed on August 30, 2023, including the Agreement for the Tier 1 Transition Agreement [PDF] from NYSERDA to LSEs, NYSERDA posted the Tier 1 Transition Agreement [PDF] on its webpage. NYSERDA recommends reviewing the Agreement carefully as it contains important information regarding payment and delivery schedules.

7. What if my LSE withdraws from the New York Market?

   LSEs who withdraw from the New York Market will still be required to pay their Tier 1 obligations to the time where load is no longer being served. Additionally, LSEs would potentially owe to NYSERDA or be credited funds after the Tier 1 Reconciliation is complete.

8. When is the Tier 1 reconciliation?

   The Tier 1 reconciliation will occur each year in the May/June timeframe after the final load data has been made available in NYGATS.

9. Does NYSERDA sell Voluntary Tier 1 REC?

   Yes, NYSERDA holds Voluntary Tier 1 REC sales. If a party is interested in participating and purchasing Voluntary Tier 1 RECs, please see the Voluntary REC Page.

10. Can Tier 1 RECs purchased via the NYSERDA Voluntary Sales or Third-Parties be used towards RES Compliance?

    NO, Tier 1 RECs purchased via the Voluntary Sale or Third-Parties cannot be used for RES Compliance. LSE RES Compliance is strictly based upon load share of the Tier 1 RECs purchased by NYSERDA.

11. Are there reports released by NYGATS showing qualified Tier 1 RES resources?

    Yes. NYGATS produces public reports of all facilities granted a Tier 1 RES Statement of Qualification. NYGATS also provides reporting of provisionally certified resources (those that are not yet operating) on an aggregate level.

Is the Tier 2 Competitive Program still active?

No, the Tier 2 Competitive Program ended as of December 31, 2023.

1. My Load Serving Entity (LSE) is new to the New York Market. What do we need to do?

   The LSE should contact NYSERDA at [email protected]. NYSERDA shall provide an overview of the program and LSE requirements. NYSERDA will also provide a link so the LSE may accept the Commission approved ZEC Agreement. LSEs should reach out to NYSERDA prior to serving load in New York.

2. How is an LSE ZEC compliance obligation calculated?

   The obligation of each LSE will be determined based on the actual load served by that LSE from April 1 through March 31 (ZEC Compliance Period). The Department of Public Service has stated that load will be calculated without losses (wholesale).

   Final load data will be available approximately five months after end of the ZEC Compliance Period (approximately September 15). Once final load data for the ZEC Compliance Period has been reported to the New York Generation Attribute Tracking System (NYGATS), each LSE’s ZEC obligation will be determined using each LSE’s actual load share ratio (the LSE’s load during the ZEC Compliance Period divided by the total New York State load during the ZEC Compliance Period). To meet its compliance obligation, the LSE must acquire ZECs from NYSERDA in an amount that equals its load share ratio multiplied by the total number of ZECs purchased by NYSERDA during that ZEC Compliance Period.

   The ZEC obligation is separate from any obligation on LSEs to encourage generation utilizing renewable resources under the Renewable Energy Standard (RES). For more information on RES, please see RES Frequently Asked Questions.

3. How is the initial ZEC Rate determined?

   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 rate to be paid by each LSE for the compliance year would be calculated according to the following formula:

   LSE Tier 2 Rate = NYSERDA’s maximum expected total cost to procure ZECs plus any Commission approved administrative added Tier 2 RECs / Forecasted statewide electric load

4. How will NYSERDA inform LSEs of the initial ZEC Rate? When will NYSERDA inform LSEs of the initial ZEC Rate?

   NYSERDA will email LSEs of the annual ZEC rate at the end of December , prior to the start of a new compliance year. NYSERDA will also update the Clean Energy Standard website to reflect the new compliance year’s ZEC rate.

5. How did NYSERDA calculate each LSE’s Monthly ZEC payment amount?

   NYSERDA utilizes Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s ZEC Monthly Obligation Payment to NYSERDA. NYSERDA typically receives load data from the NYISO on or around the 15th day of the following month. NYSERDA would then determine the LSE’s ZEC Monthly Obligation Payment. 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.

   As described above, the LSE’s actual ZEC compliance obligation will be based on the LSE’s actual load during the ZEC Compliance Period and the total number of ZECs generated in that compliance period.

6. Will the amount of Preliminary ZECs Charges that NYSERDA will invoice an LSE during the Compliance Period equal an LSE’s Final ZEC Charges for a compliance year?

   It is unlikely. Monthly ZEC Charges are based on an LSE’s V1 load data that NYGATS receives from the NYISO. The Final ZEC Charges will be based on the V2 load data as directed in the Final ZEC Implementation Plan [PDF].

7. What are the terms and conditions of the ZEC Agreement?

   In accordance with the Final Zero Emissions Credit Implementation Plan [PDF], filed on October 21, 2019, including the Agreement for the Sale of Zero-Emissions Energy Certificates from NYSERDA to LSEs. NYSERDA posted the Standard Zero-Emissions Energy Certificate Purchase Agreement [PDF] on its webpage. NYSERDA recommends reviewing the Agreement carefully as it contains important information regarding payment and delivery schedules.

8. What if my LSE withdraws from the New York Market?

   LSEs who withdraw from the New York Market will still be required to pay their ZEC obligations to the time where load is no longer being served. Additionally, LSEs would potentially owe to NYSERDA or be credited funds after the ZEC Reconciliation is complete.

9. When is the ZEC reconciliation?

   The ZEC reconciliation will occur each year in the September/October timeframe after the final load data has been made available in NYGATS.

1. My Load Serving Entity (LSE) is new to the New York Market. What do we need to do?

   The LSE should contact NYSERDA at [email protected]. NYSERDA shall provide an overview of the program and LSE requirements. NYSERDA will also provide a link so the LSE may accept the Commission approved Tier 4 LSE Agreement. LSEs should reach out to NYSERDA prior to serving load in New York.

2. How is an LSE Tier 4 Compliance Obligation calculated?

   The obligation of each LSE will be determined based on the actual load served by that LSE from January 1 through December 31 (Tier 4 Compliance Period). The Department of Public Service has stated that load will be calculated without losses (wholesale).

   Final load data will be available approximately five months after end of the Tier 4 Compliance Period (approximately May 15). Once final load data for the Tier 4 Compliance Period has been reported to the New York Generation Attribute Tracking System (NYGATS), each LSE’s Tier 4 obligation will be determined using each LSE’s actual load share ratio (the LSE’s load during the Tier 4 Compliance Period divided by the total New York State load during the Tier 4 Compliance Period). To meet its compliance obligation, the LSE must acquire Tier 4s from NYSERDA in an amount that equals its load share ratio multiplied by the total number of Tier 4s purchased by NYSERDA during that Tier 4 Compliance Period.

3. How is the initial Tier 4 Rate determined?

   Each year, NYSERDA will determine, in collaboration with Staff, the dollar per MWh charge (LSE Tier 4 Rate) owed by each LSE for the next compliance year of the Tier 4 program.

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

   LSE Tier 4 Rate = NYSERDA’s Forecasted Net total cost to procure Tier 4 RECs, plus any Commission approved adder/ Forecasted statewide electric load.

4. How will NYSERDA inform LSEs of the initial Tier 4 Rate? When will NYSERDA inform LSEs of the initial Tier 4 Rate?

   NYSERDA will email LSEs of the annual Tier 4 rate by November 1st , prior to the start of a new compliance year. NYSERDA will also update the Clean Energy Standard website to reflect the new compliance year’s Tier 4 Rate.

5. How did NYSERDA calculate each LSE’s Monthly Tier 4 payment amount?

   NYSERDA utilizes Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s Tier 4 Monthly Obligation Payment to NYSERDA. NYSERDA typically receives load data from the NYISO on or around the 15th day of the following month. NYSERDA would then determine the LSE’s Tier 4 Monthly Obligation Payment. An LSE’s monthly Tier 4 payment obligation will be calculated using the LSE Tier 4 REC Rate, the number of MWh the LSE served using the NYISO Version 1 load data, and a Load Modifier Rate, according to the following formula:

   LSE Tier 4 monthly payment obligation = (LSE Tier 4 REC Rate) x (LSE’s Version 1 MWh) x (Load Modifier Rate)

   It should be noted that the Load Modifier Rate only applies to a subset of LSEs. NYSERDA will work directly with the effected LSEs.

   As described above, the LSE’s actual Tier 4 Compliance Obligation will be based on the LSE’s actual load during the Tier 4 Compliance Period and the total number of Tier 4s generated in that compliance period.

6. What are the terms and conditions of the Tier 4 Agreement?

   In accordance with the Tier 4 Implementation Plan [PDF] filed on June 13, 2025, including the Agreement for the Tier 4 LSE Agreement [PDF] from NYSERDA to LSEs, NYSERDA posted the Tier 4 LSE Agreement [PDF] on its webpage. NYSERDA recommends reviewing the Agreement carefully as it contains important information regarding payment and delivery schedules.

7. What if my LSE withdraws from the New York Market?

   LSEs who withdraw from the New York Market will still be required to pay their Tier 4 obligations to the time where load is no longer being served. Additionally, LSEs would potentially owe to NYSERDA or be credited funds after the Tier 4 Reconciliation is complete.

8. When is the Tier 4 reconciliation?

   The Tier 4 reconciliation will occur each year in the May/June timeframe after the final load data has been made available in NYGATS.

9. Does NYSERDA sell Voluntary Tier 4 REC?

   Yes, NYSERDA holds Voluntary Tier 4 REC sales. If a party is interested in participating and purchasing Voluntary Tier 4 RECs, please see the Voluntary REC Page.

10. Can Tier 4 RECs purchased via the NYSERDA Voluntary Sales or Third-Parties be used towards RES Compliance?

    NO, Tier 4 RECs purchased via the Voluntary Sale or Third-Parties cannot be used for RES Compliance. LSE RES Compliance is strictly based upon load share of the Tier 4 RECs purchased by NYSERDA.

1. My Load Serving Entity (LSE) is new to the New York Market. What do we need to do?

   The LSE should contact NYSERDA at [email protected]. NYSERDA shall provide an overview of the program and LSE requirements. NYSERDA will also provide a link so the LSE may accept the Commission approved BES LSE Agreement. LSEs should reach out to NYSERDA prior to serving load in New York.

2. How is an LSE BES Compliance Obligation calculated?

   The obligation of each LSE will be determined based on the actual load served by that LSE from January 1 through December 31 (BES Compliance Period). The Department of Public Service has stated that load will be calculated without losses (wholesale).

   Final load data will be available approximately five months after end of the BES Compliance Period (approximately May 15). Once final load data for the BES Compliance Period has been reported to the New York Generation Attribute Tracking System (NYGATS), each LSE’s BES obligation will be determined using each LSE’s actual load share ratio (the LSE’s load during the BES Compliance Period divided by the total New York State load during the BES Compliance Period). To meet its compliance obligation, the LSE will pay NYSERDA in an amount that equals its load share ratio multiplied by the total BES cost accrued by NYSERDA during that BES Compliance Period.

3. How is the initial BES Rate determined?

   Each year, NYSERDA will determine, in collaboration with Staff, the dollar per MWh charge (LSE BES Rate) owed by each LSE for the next compliance year of the BES program.

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

   LSE BES Rate = NYSERDA’s Forecasted Net total cost of BES Program, plus any Commission approved adder/ Forecasted statewide electric load.

4. How will NYSERDA inform LSEs of the initial BES Rate? When will NYSERDA inform LSEs of the initial BES Rate?

   NYSERDA will email LSEs of the annual BES rate by November 1st , prior to the start of a new compliance year. NYSERDA will also update the Clean Energy Standard website to reflect the new compliance year’s BES Rate.

5. How did NYSERDA calculate each LSE’s Monthly BES payment amount?

   NYSERDA utilizes Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s BES Monthly Obligation Payment to NYSERDA. NYSERDA typically receives load data from the NYISO on or around the 15th day of the following month. NYSERDA would then determine the LSE’s BES Monthly Obligation Payment. An LSE’s monthly BES payment obligation will be calculated using the LSE BES Rate, the number of MWh the LSE served using the NYISO Version 1 load data, and a Load Modifier Rate, according to the following formula:

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

   It should be noted that the Load Modifier Rate only applies to a subset of LSEs. NYSERDA will work directly with the effected LSEs.

   As described above, the LSE’s actual BES Compliance Obligation will be based on the LSE’s actual load during the BES Compliance Period and the total cost of BES accrued in that compliance period.

6. What are the terms and conditions of the BES Agreement?

   In accordance with the BES Implementation Plan [PDF] filed on June 13, 2025, including the Agreement for the BES LSE Agreement [PDF] from NYSERDA to LSEs, NYSERDA posted the BES LSE Agreement [PDF] on its webpage. NYSERDA recommends reviewing the Agreement carefully as it contains important information regarding payment and delivery schedules.

7. What if my LSE withdraws from the New York Market?

   LSEs who withdraw from the New York Market will still be required to pay their BES obligations to the time where load is no longer being served. Additionally, LSEs would potentially owe to NYSERDA or be credited funds after the BES Reconciliation is complete.

8. When is the BES reconciliation?

   The BES reconciliation will occur each year in the May/June timeframe after the final load data has been made available in NYGATS.