IEEE Power & Energy Magazine - May/June 2016 - 21
Service Commission, in October 2015, temporarily lifted the
costs. The Westchester County pilot project is intended to in-
6% cap on net metering statewide. This moratorium will give
clude residential and small nonresidential customers and to per-
the commission time to conduct an inquiry into issues re-
mit aggregation of both electric and natural gas purchases.
lated to net metering and the value of DERs.
The 12- to 14-month inquiry is expected to result in more
precise methods in valuing DER benefits and costs as well as
new rate designs and valuation mechanisms that can be used
by the state as it develops REV initiatives into the future. This
process will address two closely related tasks.
1) Identify an interim approach to valuing DERs that can
be adopted prior to January 2017 and act as a foundation for an interim successor to net metering.
2) Establish a methodology and process for determining
the full value of DERs to develop compensation mechanisms for DER built upon an LMP+D approach (wholesale LMP plus the full range of values provided by distribution-level resources). Value of D refers to the benefit
that should be provided to the customer in terms of
total cost avoidance or how DERs reduce costs to the
distribution system. These can include load reduction,
frequency regulation, reactive power, line loss avoidance, resilience and locational values, as well as values
not directly related to delivery service such as installed
capacity and emission avoidance.
Benefit-Cost Analysis and DSIP Guidance Order
The implementation of REV depends upon the platforms
that will be adopted through the DSIP filing process. DSIP
filings by utilities are due 30 June 2016 and will identify opportunities to avoid traditional utility distribution and investments by calling upon the DER marketplace. When utilities
present their DSIPs, each utility will identify its system needs,
proposed projects for meeting those needs, potential capital
budgets, particular needs that could be met through DER or
other alternatives, and plans for soliciting those alternatives in
The benefit-cost analysis (BCA) framework will work
in coordination with the DSIPs, upon the identification of
processes for assuring fair, open and value-based decision
making. A BCA analysis will be applied to four categories of
* investments in DSP capabilities
* procurement of DERs through competitive selection
* procurement of DER through tariffs
* energy efficiency programs.
Community Choice Aggregation Programs (Case 14-M-0224)
The commission ruled in January that utility DSIPs can-
In February 2015, the New York State Public Service Com-
not go forward in the absence of the BCA framework. There-
mission approved the first pilot implementation of commu-
fore, the BCA handbooks that set forth the BCA framework
nity choice aggregation (CCA) under REV. In the CCA pilot,
must accompany the DSIP filings.
a nonprofit organization, Sustainable Westchester, will purchase gas and electricity for residents and small businesses
in 18-24 communities of Westchester County, effectively
giving the customers more control over their energy costs.
As the commission considers a statewide CCA program, the
Utility Energy Efficiency Budgets and Targets (Case 15-M-0252)
Authorizing annual budgets and targets for electric and gas
energy efficiency portfolios for each utility for 2016-2018
equal to the 2015 budgets and targets.
Sustainable Westchester pilot is expected to provide valu-
Community Distributed Generation (Case 15-E-0082)
able experience on CCA design and outcomes.
Phase 1 ends 30 April 2016. Phase 2 begins 1 May 2016 with
In approving the pilot program in Westchester County,
utilities opening their entire service territory to community
Commission Chair Zibelman said that it "furthers the gov-
distributed generation (CDG) subject to policies or require-
ernor's strategic REV plan by supporting communities that
ments adopted in REV for net metering.
desire to find ways to negotiate with third-party energy pro-
Utilities were previously required to file CDG operating
viders to meet their community's energy supply needs and
procedure manuals with the commission by November 2015.
to get the best price possible."
The potential benefits of CCA programs include price stability for a fixed contract term, the potential for lower prices and
more favorable terms, and the ability to design a program that
DERs Oversight (Case 15-M-0180)
Considering uniform business practices, data sharing, aggregator
eligibility requirements and other issues related to DER suppliers.
reflects local preferences and needs, including a preference for
Eligibility Requirements for Energy Service Companies
cleaner power sources. CCA programs also have the potential to
(ESCOs) (Case 15-M-0127)
enable eligibility requirements for energy service companies to
Proposals are being considered to reflect lessons learned
secure a large number of customers at relatively low marketing
and strengthen retail energy markets.
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