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The Alliance for Clean Energy (ACE) of New York Files Letter In Support Of ESCO’s Petition Seeking Declaratory Ruling That LSRs May Sell RECs & Make Bilateral REC Transactions 

From ACE Letter In Support:

“The Alliance for Clean Energy New York (ACE NY) would like to convey our support for the CleanChoice Energy Petition seeking a declaratory ruling that large-scale renewable energy projects (“LSR projects”) may sell uncontracted renewable energy credits (“RECs”) to third parties and that energy service companies (“ESCOs”) remain permitted to make bilateral REC transactions with entities besides NYSERDA. As noted in the Petition, the RECs referred to include both Tier 1 RECs as well as any non-Tier 1 RECs generated by qualifying renewable resources that are not currently under contract with NYSERDA. ACE NY member companies focused on the development of LSR Projects have expressed great interest in this petition and the outcome it seeks. 

The December 12, 2019 Order Adopting Changes to the Retail Access Energy Market and Establishing Further Process(in Case 15-M-0127) 2 specified that ESCOs may meet minimum renewable requirements by purchasing RECs from eligible renewable generators through bilateral agreements or through NYGATS (among other options), however, unclear language in the April 20, 2023 Order Modifying Clean Energy Standard Tier 1 Obligations (in Case 15-E-0302)3 creates uncertainty that those options to procure unbundled RECs with entities besides NYSERDA are still permitted. 

The April 2023 CES Modification Order stated that NYSERDA contracts for 95% of the anticipated generation output of Tier 1 resources, which means that 5% of anticipated Tier 1 resource output remains uncontracted by NYSERDA. The April 2023 Order implies that this 5% remainder of uncontracted Tier 1 RECs “would remain available to support voluntary REC products” but does not specify the contracting method by which these RECs remain available, and to which entities. 

The April 2023 Order additionally states that load-serving entities (“LSEs”) may not have the opportunity to purchase Tier 1 RECs from entities other than NYSERDA but does not specify if this is due to lack of market liquidity or if this due to market prohibition. 

To resolve this ambiguity, we respectfully request that the Commission consider issuing a declaratory ruling that LSR Projects that have not contracted with NYSERDA are free to sell or transfer their RECs to third party market participants, including but not limited to ESCOs.”

As background, on May 2, 2025, CleanChoice Energy filed a petition seeking a declaratory ruling from the New York Public Service Commission (NYPSC) to confirm the following: (1) owners of large-scale renewable energy projects may sell or transfer their RECS to third party market participants, provided that the RECs are not under contract with NYSERDA; and (2) retail suppliers may purchase or procure RECs from sellers other than NYSERDA, provided that the transaction is recorded in the New York Generation Tracking System (NYGATS).

In New York it is common for suppliers to meet their Clean Energy Standard obligations with RECs purchased by NYSERDA and re-sold to suppliers in proportion to their load-share.  However, some suppliers like CleanChoice want confirmation from the Commission that they can continue to retire RECs purchased from Tier 1 sources directly as part of offering 100% renewable energy products.

ACE NY Letter of Support  (05/29/2025)

Petition for NYS PSC Declaratory Ruling (05/02/2025)
25-E-0270

(CleanChoice Energy’s petition for a declaratory ruling to permit conditional sales of Tier 1 renewable energy credits from large-scale projects to third-party market participants.)