Compliance Information for Retail Electric Suppliers

Any company that sells retail electricity in Massachusetts is required to submit an Annual Compliance Filing that demonstrates it has met all RPS Class I, RPS Class II, and APS percentage obligations.

Annual Compliance Filing Forms and Guidelines

The Renewable Energy Portfolio Standard (RPS) and Alternative Energy Portfolio Standard (APS) Regulations require each Massachusetts Retail Electricity Supplier's total annual sales of each Massachusetts Retail Electricity Product to include a minimum percentage of energy sales from these obligations:

  • RPS Class I (formerly "RPS")
  • RPS Class I Solar Carve-Out
  • RPS Class I Solar Carve-Out II
  • RPS Class II Renewables
  • RPS Class II Waste Energy
  • APS

In order to demonstrate compliance with these requirements, each Retail Electricity Supplier must submit an Annual Compliance Filing to the Department of Energy Resources no later than July 1 of the subsequent Compliance Year. 

2016 Email for RPS & APS Annual Compliance & Webinar, 5-19-17

2016 RPS and APS Annual Compliance Filing Instructions 

2016 RPS & APS Compliance Workbook REV 1.6, 6-8-17 

2016 RPS/APS Compliance Filing Webinar

RPS Compliance Basis Guideline (5/24/12)

Guideline on the RPS Class II and APS Compliance (5/25/10)   

RPS and APS Minimum Standards

Each class and subclass of RPS and APS has its own percentage obligation for compliance; those percentages rise each year in the case of RPS Class I and APS, but not for RPS Class II. Beyond 2020 the RPS Class I and APS programs are scheduled to continue to grow annually at 1% and 0.25% respectively. The RPS I Solar Carve-Out, RPS Solar Carve-Out II, and RPS Class II Renewable Minimum Standards are set each August for the following year; the standards are based on formulas that take into account current market conditions. Each year the Retail Suppliers must show that they have purchased a sufficient amount of Renewable Energy Certificates (RECs), Alternative Energy Certificates (AECs), Waste Energy Certificates (WECs), Solar Renewable Energy Certificates (SRECs), and Solar Renewable Energy Certificate IIs (SREC IIs) to meet the Minimum Standard for that class. In general, the Retail Supplier determines the number of certificates that are needed each Compliance Year by multiplying their total annual sales times the Minimum Standard.

RPS and APS Minimum Standards through 2020

RPS Solar Carve-Out Minimum Standard Calculations 2012-2015

The RPS Solar Carve-Out Minimum Standard is set each August per formulas contained in the Class I Regulation. The results of these calculations from prior years can be found on the following page.

RPS Solar Carve-Out and Solar Carve-Out II Exemptions

The RPS Solar Carve-Out and Solar Carve-Out II Programs provide compliance exemptions for load under contract prior to certain dates. In particular, 225 CMR 14.07(2)(a)4 and 5 exempts any load under contracts signed prior to June 28, 2013 from complying with a Solar Carve-Out Minimum Standard higher than what would have existed had the Solar Carve-Out Program Cap not been increased from 400 MW. This exemption will first apply in 2015. 225 CMR 14.07(3)(b) exempts any load under contracts signed prior to April 25, 2014 from complying with the Solar Carve-Out II Program. This exemption will first apply in 2014.

In an effort to provide transparency to market participants, DOER requested that all retail suppliers provide projections of the number of MWh that they will serve to customers under contracts that qualify for each of these exemptions through 2019. The aggregate data collected from all suppliers provides information on how the exemptions are expected to reduce market demand for both SREC and SREC II certificates. The following spreadsheet contains the aggregate information collected, with the first tab containing data on the Solar Carve-Out exemption and the second containing data on the Solar Carve-Out II exemption.

SREC I and II Exempt Load Projections  

2017 RPS Class II Renewable Energy Minimum Standard

The RPS Class II Renewable Energy Minimum Standard is set each August per a formula contained in the Class II Regulation. The 2019 Minimum Standard calculation is detailed in the following document:

Determination of CY 2019 Class II Renewable Minimum Standard 

Previous Years’ Determinations:

Determination of CY 2018 Class II Renewable Minimum Standard 

Determination of CY 2017 Class II Renewable Minimum Standard 

Determination of CY 2016 Class II Renewable Minimum Standard 

Compliance Year Load Obligations

Annual Compliance obligations are assessed based on the total load served by Retail Suppliers. DOER obtains the final retail load obligation after the close the calendar year, and before the close of the REC trading year, in order to determine the total compliance obligation. For 2016, total retail sales in Massachusetts equaled 46,864,431 MWh. The following table contains the total load obligations figures for current and past compliance years.

Total Load Obligations

Alternative Compliance Payment Rates

Any Retail Electricity Supplier that is required to comply with the Massachusetts Renewable Energy Portfolio Standard (RPS) and Alternative Energy Portfolio Standard (APS) regulations may, if necessary, discharge some or all of its obligations by making an Alternative Compliance Payment (ACP) in the appropriate amount to the Massachusetts Clean Energy Center (MassCEC). The ACP rate for the first year of each standard was specified in regulation. The ACP Rate for each subsequent Compliance Year must be published by DOER by January 31 of that year and must be adjusted in accordance with the previous year's Consumer Price Index (see table below).

The RPS Class I Solar Carve-Out and RPS Class I Solar Carve-Out II have different ACP Rates and annual adjustments than the rest of RPS Class I and are not based on the Consumer Price Index. Retail electricity Suppliers should visit the Current Status of the Solar Carve-Out Program and Current Status of the Solar Carve-Out II program pages for more details on future ACP Rate adjustments.

It should also be noted that Competitive Retail Electric Suppliers may meet their RPS Solar Carve-Out compliance obligations for load under contract prior to January 1, 2010, with an Alternative Compliance Payment at a rate equal to the RPS Class I ACP rate for the applicable Compliance Year.

ACP Rates for the 2017 Compliance Year:

  • RPS Class I = $67.70 per MWh
  • RPS Class I Solar Carve-Out = $448.00 per MWh
  • RPS Class I Solar Carve-Out II - $350.00 per MWh
  • RPS Class II Renewables = $27.79 per MWh
  • RPS Class II Waste Energy = $11.12 per MWh
  • APS = $22.23 per MWh

The MassCEC will give each Retail Electricity Supplier a receipt for each ACP transaction. Each Supplier must include copies of its receipts in its Annual Compliance Filing. Suppliers must submit filings for the 2016 Compliance Year to the Department of Energy Resources (DOER) no later than Monday, July 3, 2017.

Annual ACP Rate Adjustments

DOER must publish each Compliance Year's adjusted rate for ACPs by January 31 of that Compliance Year (per the RPS/APS regulations). The ACP Rate is equal to the previous year's ACP Rate adjusted up or down according to the previous year's Consumer Price Index (CPI). DOER uses the "Consumer Price Index - All Urban Consumers: Northeast Region All Items," which is issued by the U.S. Bureau of Labor Statistics and is not seasonally adjusted. DOER uses the following formula to calculate the adjusted ACP rate each year:

ACP Rate of Next Compliance Year = (ACP Rate of current Compliance Year) x (CPI of current Compliance Year / CPI of previous Compliance Year)

 

Compliance Year

CPI

RPS Class I ACP Rate

RPS Class I Solar Carve-Out ACP Rate

RPS Class I Solar Carve-Out II ACP Rate

RPS Class II Renewable Generation ACP Rate

RPS Class II Waste Energy ACP Rate

APS ACP Rate

2017   $67.70 $448.00 $350.00 $27.79 $11.12 $22.23

2016

254.850

$66.99

$472.00

$350.00

$27.50

$11.00

$22.00

2015

252.185 

$67.07

$496

$375

$27.53

$11.01

$22.02

2014

252.463

$66.16

$523

$375

$27.16

$10.86

$21.72

2013

249.038

$65.27

$550

N/A

$26.79

$10.72

$21.43

2012

245.698

$64.02

$550

N/A

$26.28

$10.51

$21.02

2011

240.997 

$62.13

$550

N/A

$25.50

$10.20

$20.40

2010

233.868

$60.93

$600

N/A

$25.00

$10.00

$20.00

2009

229.343

$60.92

 N/A

N/A

$25.00

$10.00

$20.00

2008

229.306

$58.58

N/A

N/A

 N/A

 N/A

 N/A

2007

220.512

$57.12

 N/A

N/A

 N/A

 N/A

 N/A

2006

215.0

$55.13

 N/A

N/A

 N/A

 N/A

 N/A

2005

207.5

$53.19

 N/A

N/A

 N/A

 N/A

 N/A

2004

200.2

$51.41

 N/A

N/A

 N/A

 N/A

 N/A

2003

193.5

$50.00

 N/A

N/A

 N/A

 N/A

 N/A

2002

188.2

N/A

 N/A

N/A

 N/A

 N/A

 N/A

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