SSS Methodology
Why this methodology exists
Organizations often fund carbon-free resources through standard utility rates but cannot credibly claim that value in Scope 2 market-based reporting because of:
- No REC/EAC verification path for some default-supply resources
- No independent third-party verification of utility-level allocation methods
- Reporting gaps between utility portfolio data and customer-facing audit documentation
- Inconsistent treatment of utility inputs across reporting cycles
SSS addresses these gaps with a transparent, repeatable, and reviewable framework.
Methodology objectives
- Create defensible pro-rata allocation of qualified utility carbon-free energy
- Align reporting outputs with Scope 2 market-based quality expectations
- Preserve traceability from source datasets to final customer claims
- Reduce risk of double counting and resource-shuffling outcomes
End-to-end process (6 steps)
- Collect source datasets
- Utility resource mix, generation and retirement context, retail sales denominators, and customer load data
- Normalize + validate inputs
- Unit checks, period alignment, and consistency controls
- Apply qualification rules
- Determine which carbon-free volumes are eligible for allocation
- Run pro-rata allocation
- Allocate qualified volumes to customers by formula
- Generate reporting outputs
- Build customer-ready and reviewer-ready report packages
- Verification support
- Maintain evidence trail, assumptions register, and change logs for third-party review
Core pro-rata allocation formula
(Qualified Utility CFE / Utility Retail Sales) × Customer Load = Customer Claimable CFE
Worked example
- Qualified Utility CFE = 1,200,000 MWh
- Utility Retail Sales = 6,000,000 MWh
- Customer Load = 50,000 MWh
Allocation factor = 1,200,000 / 6,000,000 = 0.20
Customer claimable CFE = 0.20 × 50,000 = 10,000 MWh
This claimable CFE quantity is then carried through documentation and quality checks for reporting use.
Data hierarchy and evidence priority
When multiple sources exist, SSS applies a quality hierarchy:
- Supplier-attested / utility-verified data (highest confidence)
- Regulatory filings / official published disclosures
- Fallback public proxy estimates (clearly flagged and limited)
Each report records which level was used and why.
Scope 2 alignment guardrails
SSS is structured to support market-based accounting expectations by emphasizing:
- Allocation transparency (formula, assumptions, and denominator clarity)
- Temporal and boundary consistency
- Evidence traceability for assurance
- Explicit treatment of exclusions and limitations
Anti-shuffling and double-counting controls
- Controlled eligibility filters before allocation
- Source and claim boundary checks
- Separation of utility allocation from voluntary procurement claims
- Review checkpoints for overlapping instruments
Outputs delivered
- Customer claim summary (MWh and implied emissions impact context)
- Methodology appendix with assumptions and formulas
- Data lineage and source references
- Verification-ready evidence packet
FAQ (methodology)
Is this supplier qualification or resource qualification?
Primarily resource qualification with supplier data quality controls. Eligibility is tied to qualified carbon-free volumes and defined reporting boundaries.
Does SSS replace voluntary RECs or PPAs?
No. SSS establishes a utility-allocation baseline. Voluntary instruments can then address residual load.
How often should methodology runs be refreshed?
Typically aligned to reporting cadence (monthly, quarterly, annual), with reruns when source data revisions are material.
Next step
Book a Demo or contact info@sssregistry.com / support@sssregistry.com.