Clean Energy Standard

On August 1, 2016, the Public Service Commission issued an Order Adopting a Clean Energy Standard (CES Order). This order is to help push the state towards its goal that 50 percent of the electricity consumed by New Yorkers will be produced from renewable sources by 2030. The CES Order requires that all Load Serving Entities (i.e. utility companies, ESCOs) collect the cost of Renewable Energy Credits (RECs), Zero-Emission Credits (ZECs) and Alternative Compliance Payments (ACPs) from their customers through a per kilowatt-hour surcharge. This legislation put RECs and ACPs into effect on January 1st, 2017. ZECs will be taking effect on April 1st, 2017.

FAQs

  • Am I going to be subject to this charge?

    If you are an electricity consumer in New York, yes. No matter who your supplier is, anyone who uses electricity in New York will be subject to this charge including residential, commercial and industrial users.

  • By how much should I expect my bill to increase?

    All customers’ rates will increase by between $0.003/kwh and $0.0035/kwh. For the average household (10,000 kwh annual usage) this translates to about a $2.83 increase in their monthly bill, or $34 annually.

  • I’m currently enrolled in a fixed price electricity plan, will my rate increase?

    Unfortunately yes. The state requires that all competitive ESCOs be responsible for collecting the costs associated with this order from their customers. Your rate will still be fixed at its current rate plus the CES surcharge after the order has gone completely into effect. All forward fixed prices will include the cost of CES already built in.

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