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Commission Issues Order Clarifying Buyback Charges For DERs
Previously on July 18, 2025, the New York PSC issued an order clarifying buyback charges and exempting small hydroelectric facilities.
In this order, National Grid must file: (1) file tariffs reflecting the determinations made in the body of this order, to become effective on February 1, 2026, and (2) housekeeping tariff amendments to correct the rules and requirements under standby service regarding on-site generation sources of five megawatts or less effective February 1, 2026.
As background, in an order authorizing the commencement of Community Distributed Generation or DG programs, the NY PSC directed Staff to initiate a docket to establish valuation methods for Distributed Energy Resources (DER) and designing rates for DER providers.
Upcoming requirements:
- A summary explanation of the customer benefit contribution charge must appear on customer’s bills by December 21, 2025.
- Beginning 1/1/26 the utilities must pay eligible hydroelectric generating facilities the HValue of the value of distributed energy resources value stack.
- Beginning 10/1/27 the utilities must report the total number of H-Value renewable energy certificates they purchased and retired on behalf of the New York State residents.
- Beginning 11/1/27 NYSERDA must calculate and publish the H-Value compliance obligation per megawatt hour rate to be collected from all load serving entities.
- On a quarterly basis beginning in 2028, the utilities must invoice NYSERDA for payment for the cost of the H-Value payments made to eligible hydroelectric generators.
15-E-0751
(Proceeding To Examine Distributed Energy Resources (DER) And Designing Rates For DER providers.
