2021 Compliance Year

This page includes information on the 2021 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 2021 compliance year, which differs for RECs and ZECs. Beginning April 1, 2021, there will be a new method for calculating an LSE’s initial ZEC obligation and how LSE’s remit ZEC obligation payments. See below for more information.

Renewable Energy Standard 2021 Compliance

RES 2021 Compliance Year Resources

2021 Quarter 1 Tier 1 REC Sale Price: $22.33

2021 Quarter 2 Tier 1 REC Sale Price: $22.56

2021 Quarter 3 Tier 1 REC Sale Price: $ TBD

2021 Quarter 4 Tier 1 REC Sale Price: $ TBD

2021 ACP Price: $23.79

The Renewable Energy Standard (RES) 2021 compliance year for Tier 1 RECs begins on January 1, 2021 and ends on December 31, 2021.

NYSERDA will continue to sell Tier 1 RECs to LSEs on a quarterly basis, as available. At the end of every quarter, NYSERDA will announce a sale of Tier 1 RECs. These sales will include 2021 Tier 1 RECs and any unpurchased Tier 1 RECs from 2019 and 2020.

Trading Period Date Range for Tier 1 REC Sale Announcement
Q1 March 31 – April 30, 2021
Q2 June 30 – July 31, 2021
Q3 September 30 – October 31, 2020
Q4 December 30, 2020 – January 31, 2021

 

Changes based upon the Phase 4 Implementation Plan [PDF].

The sale will conclude 21 days after each announcement.

NYSERDA will set a Tier 1 REC price for each individual quarterly sale. Prior to each quarterly Tier 1 REC Sale, NYSERDA will determine the actual average Tier 1 REC price NYSERDA paid to the generators of all Tier 1 RECs (whether a fixed or index method) being offered during that quarterly sale. Unsold RECs from previous quarters will be factored into the quarterly weighted average cost of Tier 1 RECs at the price NYSERDA purchased them.

NYSERDA’s price for a Tier 1 REC will no longer be tied to its vintage. The Tier 1 REC price could vary each quarter depending upon the volatility of the index REC payments and the number of Tier 1 RECs purchased through index REC contracts.

NYSERDA will continue to allocate Tier 1 RECs on a FIFO basis using the vintage date for NYGATS certificates in NYSERDA’s NYGATS account to ensure transparency and consistency in the inventory clearance approach. 2019 and 2020 RECs will be distributed based upon earliest payment by LSEs.

Please note that 2019 and 2020 Tier 1 RECs can be used for compliance in the 2021 compliance year.

If an LSE is unable to generate or purchase the necessary Tier 1 RECs, LSEs can fulfill their 2021 Tier 1 REC compliance by making an alternative compliance payment (ACP) to NYSERDA.

The 2021 ACP costs $/MWh for each megawatt-hour of renewable energy an LSE is unable to generate or purchase the necessary Tier 1 RECs to meet its obligation. LSEs will have the option of making ACPs after NYSERDA and the LSEs have reconciled the 2020 RES compliance year REC obligations in 2021.

Additionally, any 2021 Tier 1 RECs that remain unpurchased after the end of the compliance year will be banked by NYSERDA and may be available for purchase in future compliance years.

Tier 2 2021 Compliance

Tier 2 2021 Compliance Year Resources

LSE Tier 2 Rate: $0.02/MWh

Tier 2 Agreement [PDF]

Petition for Competitive Tier 2 Program for
Baseline Renewable Generation [PDF]

Order Adopting Modifications to the CES [PDF]

Final Tier 2 Resale Implementation Plan [PDF]

In accordance with the Order Adopting Modification to the CES [PDF], filed on October 15, 2020, NYSERDA and Staff calculate a uniform per MWh rate that would be applied to each LSE’s actual wholesale load to calculate their Tier 2 Monthly Obligation Payments, with a January 1st through December 31st compliance year.

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 Tier 2 RECs plus any Commission approved adder/ Forecasted statewide electric load

Please note: As identified in the Order Adopting Modification to the CES, The LSE Tier 2 Rate will be based on the forecasted statewide load for 6 months.

An LSE&;s Tier 2 Monthly Obligation Payment would be calculated using the LSE Tier 2 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 Tier 2 Monthly Obligation Payment = (LSE Tier 2 Rate) x (LSE’s Version 1 MWh) x (Load Modifier Rate)

Process

NYSERDA would utilize Version 1 of the total LSE load data, as settled by the NYISO each month, as a basis for each LSE’s Tier 2 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 2 Monthly Obligation Payment to NYSERDA using the formula specified above and issue an invoice. LSEs would submit their payment to NYSERDA within 15 days from the issuance of the invoice.

Reconciliation

The Annual Tier 2 Obligation amount would be determined by a final reconciliation that would occur after the close of each compliance year. The reconciliation process would be based on the LSE’s load using NYISO Version 2 data, the total load served by the LSEs and the total dollars expended by NYSERDA to purchase Tier 2 RECs during the compliance year.

The reconciliation process would occur after the Tier 2 compliance year ended on December 31st. NYSERDA would reconcile the funds collected from each LSE to the funds necessary to meet their obligation based on the Version 2 load data that is provided from the NYISO and recorded in NYGATS. This load would be adjusted for load modifiers as described in the Phase 1 Implementation Plan. NYSERDA would also reconcile the funds collected from the LSEs against NYSERDA’s financial obligations due to the purchase of Tier 2 RECs. This reconciliation would take into account the actual adjusted statewide load and NYSERDA’s actual Tier 2 REC payments during the referenced compliance year.

ZEC 2021 Compliance

ZEC 2021 Compliance Year Resources

LSE ZEC Rate: $4.20/MWh

Revised ZEC Agreement [PDF]

Final Zero Emissions Credit (ZEC) Implementation Plan [PDF]

In accordance with the Final Zero Emissions Credit Implementation Plan [PDF], filed on October 21, 2019, NYSERDA and Staff will modify how each LSE’s initial ZEC obligation is calculated, beginning April 1, 2020, and how LSEs remit ZEC obligation payments. Under the new method, 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 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.