UPDATE: 

Staff of the New York State Department of Public Service (Staff) issued a straw proposal on Track One issues. The straw proposal included numerous recommendations for the Commission to consider in this proceeding, including the identity of the DSP, the extent to which electric utilities will be permitted to engage in the DER market, access to customer data and utility energy efficiency programs. 

To ensure full public participation in its regulatory reform efforts, the Department conducted a series of informational sessions and public statement hearings, seeking public input and comments on Staff’s straw proposal and Track One issues. At the information sessions, representatives from Staff had provided an overview of what the REV initiative means for customers and were available to answer questions.  These information sessions were followed by public statement hearings where all those wishing to comment had the opportunity to make a statement on the record.

About the Initiative

The energy industry is in transition.  Technological innovation and increasing competitiveness of renewable energy resources, combined with aging infrastructure, extreme weather events, and system security and resiliency needs, are all leading to significant changes in how electric energy is produced, managed and consumed.

To meet this challenge, the New York State Public Service Commission (Commission) commenced a proceeding to reform New York’s energy industry and regulatory practices.  The initiative, called Reforming the Energy Vision (REV), will align electric utility practices and the Commission’s regulatory model with technological advances that have created alternatives to traditional solutions to meeting electricity demand. 

The REV initiative will lead to regulatory changes that promote more efficient use of energy and a deeper penetration of renewable resources such as wind and solar.  The Commission is considering a new business model for energy service providers where distributed energy resources (DER) – such as distributed generation, on-site power, micro-grids, demand response, and storage – become a primary tool in the planning and operation of the electric system.  These changes will empower customers by allowing them more choice in how they manage and consume electric energy.

The Commission identified six policy objectives supporting this effort that will: 

• enhance customer knowledge and tools to enable customers to manage their energy bills and provide more choice in how they use energy
• animate the market and leverage ratepayer contributions
• promote system-wide efficiency
• increase fuel and resource diversity
• enhance system reliability and resiliency
  
• reduce carbon emissions

The Commission Order instituting the REV proceeding designated two tracks for this initiative:

1. Track One: examines the role of distribution utilities in enabling system-wide efficiencies and market-based deployment of DER and load management, ultimately providing a market in which customers are able to optimize their priorities with respect to reliability, cost and sustainability. This track considers whether the incumbent electric utilities should serve as the Distributed System Platform (DSP) provider (the entity that will manage and coordinate DER), as well as examining wholesale market issues and opportunities for customer engagement.

2. Track Two: will address the regulatory changes and ratemaking issues that will be necessary to implement the REV vision.  This track is on a later timeline than the first track.

Public Involvement

The REV initiative was instituted as a public proceeding to gather input from all stakeholders into the decision making process.

Track One began with a collaborative process where working groups tackled issues related to market structure, platform technology, wholesale markets, microgrids and customer engagement. A public symposium and two technical conferences were held before the Commission on Track One issues. 

On August 22, 2014, the Staff of the New York State Department of Public Service issued a straw proposal entitled “Developing the REV Market in New York: DPS Staff Straw Proposal on Track One Issues.”  The straw proposal made numerous recommendations that the Commission will be considering in the context of a Track One Order in this proceeding including, among others, the identity of the Distribution System Platform provider, the extent to which electric utilities will be permitted to engage in the DER market, access to customer data and utility energy efficiency programs. Parties filed comments and reply comments on the straw proposal.

Public Comment Receieved

Public comment on the straw proposal and Track One issues has ended.  The proposal can be viewed by visiting the Commission’s website, www.dps.ny.gov, and clicking on the “Reforming the Energy Vision (REV)” link at the top of the page and opening the document entitled “August 22, 2014 – DPS Staff issues REV Straw Proposal.”  All comments become part of the record considered by the Commission. 

Staying Connected

• Subscribe to the Document and Matter Management System- Stay informed of any proceeding activities such as case filings or Commission issuances by subscribing to the Department’s on-line document management system. Registered users of the application can self-subscribe to the service or party list, submit comments and E-File. Visit the REV webpage on www.dps.ny.gov for more information about this service.
• Monitor the Case on Department’s Website- Interested persons who choose not to sign up to receive e-mail notifications can visit www.dps.ny.gov to check on the status of the proceeding. All documents filed by parties, correspondence, hearing transcripts, and documents issued by the Commission are posted on the website. Filings received by individuals who are not a party are posted under the ‘public comments’ tab on the webpage for Case 14-M-0101 (Reforming the Energy Vision).

Click here for a printable copy of the REV factsheet.

For more information on the case, and to be brought to the DPS website click here.