INTRODUCTION

In the Fall of 2012, Hurricane Sandy slammed into the East Coast of the United States, killing
hundreds of people and causing over $70 billion in property damage.i Entire communities went
dark, some for months afterwards, and roughly seven million people found themselves without
power.ii This storm, and fear of more frequent and destructive storms like it, brought climate
change, grid resilience, and reliability to the forefront of the grid reform conversation. Backed by
Governor Andrew Cuomos administration, New Yorks energy regulators launched a
comprehensive modernization initiative in 2014 known as Reforming the Energy Vision, or REV,
for short.
REV has some ambitious goals. In the words of New Yorks Chairman of Energy and Finance
Richard Kauffman:
New York is moving to a more market-based, decentralized approach with how it
shapes energy policy. This new approach will help protect the environment, lower
energy costs and create opportunities for economic growth. By developing
innovative market solutions, Governor Cuomo is changing the energy industry
into a clean, cost-effective and dynamic system that is more resilient to the
impacts of climate change.iii
While energy industry investors around the country are worried about the "utility death spiral
the idea that distributed energy resources like solar and battery storage will soon turn the
centralized electric utility into an artifact serving an ever-decreasing number of customers New
York REV is one of the most notable efforts to push utilities to adapt to the forces behind the
"spiral." In many states there have been conflicts between distributed resources and the utility,
such as in Nevada where the utility NV Energy has been sparring with advocates of residential
solar over policies like fixed charges on solar users. In contrast to this adversarial relationship,
REV seeks to transform New York utilities into collaborative partners that can facilitate and
encourage new types of customer-oriented clean energy. Because of the precedents it could set
for fundamental transformations in the utility business model, REV has been called "arguably the
most important regulatory proceeding in the country right now."iv
After more than two years of regulatory work, several major changes necessary to bring about
the goals of REV have taken place, and key elements of New Yorks grid of the future are
beginning to take shape. More work remains, v and there is still a great deal of uncertainty and
speculation about the ultimate success of REV, but a stronger market for clean energy solutions is
beginning to emerge. With new rules and incentives in place designed to push utilities into the
21st century, the regulators have laid much of the groundwork. Much of the burden now shifts to
the private sector to explore and develop innovative solutions in order to help bring about a
resilient, flexible, and cleaner grid.

YOUR TASK
You and your team are founding a start-up and looking to take advantage of the new market
opportunities emerging from New York REV. You are free to focus on any type of product or
service (software, hardware, platforms, etc.), but your idea must be directly pertinent to at least
one of the four following technology categories (with recommended subcategories as bullets):
-

Energy Storage
o Aggregation and Control
Microgrids
Distributed Generation
o Optimization
o Customer Engagement /
Interconnection
Demand Management
o Demand Response
o Energy Efficiency

Judging criteria: Responses will be evaluated on the following criteria:

-

Analysis: Identify challenges and opportunities; provide quantitative and qualitative

support; offer original insight.

Recommendations: Follow logic from analysis; address identified questions; demonstrate

sound judgment, a creative approach, and realistic answers.

Presentation: Clear, concise and structured presentation, well-balanced among team

members; aesthetically pleasing and effective slides.

Questions & Answers: Clearly answer posed questions; provide convincing explanations;
answer as a team; be open and transparent about weaknesses or flaws.

Format of submissions: Responses should be in Microsoft PowerPoint format.

ENERGY IN NEW YORK

In 2015, New Yorks Independent System Operator (NYISO) published an analysis of New
Yorks current and expected challenges with regards to its energy infrastructure. vi Among their
findings:
-

Despite an overall surplus of power resources, transmission constraints and congestion

create reliability risks. For example, the Southeast portion of the state uses some
twothirds of the states electricity, but only half of the states generating capacity is
located in this region.

In addition, maintaining future reliability through transmission upgrades is expected to be

expensive. The ISO forecasts that nearly 4,700 circuit-miles of transmission lines will
need to be replaced over the next 30 years, at an estimated cost of $25 billion.

Overall electric energy usage is not expected to grow over the next decade, while peak
demand is expected to grow.

For more detail on NYISOs analyses and forecasts, including a breakdown of New York's
current electricity mix, see Appendices I V.
New York introduced competitive wholesale energy markets in the 1990s. Under the current
system, roughly 94% of New Yorks electricity needs are met through a day-ahead market
overseen by the NYISO. 60% of the energy exchanged on that market is bought and sold through
competitive auctions overseen by the NYISO, with the remaining 40% exchanged through
bilateral contracts between generators and utilities or energy service companies (ESCOs). The
remaining approximate 6% of New Yorks energy is traded through the real-time market. vii In
addition to the traditional exchange of electrons over the day-ahead and real-time markets, New
York features markets for capacity, ancillary services, transmission congestion contracts, demand
response, and other services.viii

NEW YORK REV

New York REV is a comprehensive and ambitious process. It includes more than 40 different
initiatives spread across three strategic pillars: the Reforming the Energy Vision Regulatory
Docket, the New York State Energy Research and Development Authoritys (NYSERDA) Clean
Energy Fund, and NYPAs leadership through operations and programs.ix For purposes of this
competition, although you are welcome to explore how your business might successfully capture

incentives from all the pillars (including the Clean Energy Fund), our primary focus is on the
first of the three pillars: the REV Regulatory Docket.
Building on energy deregulation in the 1990s, the overall aim of the REV docket is to reform the
framework under which energy is generated, delivered, and sold. x As NYPSC Chair Audrey
Zibelman put it, "By fundamentally restructuring the way utilities and energy companies sell
electricity, New York can maximize the utilization of resources, and reduce the need for new
infrastructure through expanded demand management, energy efficiency, renewable energy,
distributed generation, and energy storage programs."xi
The REV docket features two "tracks." Track 1 of the proceedings focuses on developing
distributed resource markets and a new role for utilities as providers of Distributed System
Platforms (DSPs). Track 2 of the proceedings targets ratemaking and revenue stream reforms to
support the growth of the DSP model. xii The case will address each of these Tracks in turn,
beginning with the DSP model, which is in many ways the cornerstone of the regulatory changes
underway in REV.
REV - Distributed System Platforms
If you are considering partnering with or selling your product/service to utilities, it is important
to understand the new rules and incentives coming out of REV that are intended to shape utility
investment behavior.
The New York Public Service Commission (PSC) defined the distributed system platform (DSP)
as follows:
The DSP is an intelligent network platform that will provide safe, reliable and efficient
electric services by integrating diverse resources to meet customers and societys
evolving needs. The DSP fosters broad market activity that monetizes system and social
values, by enabling active customer and third party engagement that is aligned with the
wholesale market and bulk power system.xiii
Importantly, the PSC sees the DSP as primarily an enabler of innovation. In the April 2015 Order
establishing the DSP framework, the PSC wrote, "[t]he reformed electric system will be driven
by consumers and non-utility providers, and it will be enabled by utilities acting as Distributed
System Platform (DSP) providers . . . ." xiv This enabling role features a couple of key constraints
on utilities. First, utility ownership of DERs is highly restricted, except in instances with a
demonstrated need where a viable third party option is not available. Second, DER providers are
to be treated as "customers and partners, rather than competitors, of traditional grid service." The
DSP is responsible for offering information, interconnection, and dispatch services on reasonable
terms, and DER providers and their customers are entitled to compensation from the DSP. xv

This required level of collaboration is a fundamental element of New York REVs vision of a
transactive grid.
To ensure that the DSP providers fulfill their role as market enablers that encourage innovation
and grid improvements without crowding out third parties, the Commission has been rolling out
a set of new rules describing DSP functions. These functions fall into three primary categories:
integrated system planning, grid operations, and market operations.
Integrated System Planning
The new model for DSPs requires utilities to expand and modify their traditional system
planning, which has traditionally focused on justifying capital expenditures. The primary feature
of this new model is the Distributed System Implementation Plan (DSIP), a multi-year plan
containing a proposal for capital and operating expenditures required for DSP functions, and
system information required by third parties to effectively participate in the market.1
Grid Operations
Grid operations rules primarily revolve around integrating distributed energy resources (DERs)
into the electricity delivery system. The goal here is not just to add more DERs to the grid, but
also to integrate those DERs and use them to enhance grid reliability and resilience. The PSC
foresees DSPs increasingly relying on DERs to maintain reliable system operations during both
blue sky days and significant system events.xvi In order to achieve that optimal integration, the
PSC outlines a set of specific needs and functions for the DSP, including:
-

Committing and dispatching market-based DER and integrating load impact information
with core utility grid operations.

Increasing the use of intelligent grid-facing equipment (e.g. sensors, voltage monitors).

A grab bag of more advanced grid management functions such as real-time load and
network monitoring, enhanced fault detection and location, automated feeder and line
switching, and automated voltage and VAR control.xvii

Market Operations
Market enablement is perhaps the most significant function of DSPs, but it also involves the
greatest uncertainty and long-term speculation. The PSC argues that many products and rules
will have to develop over time, that price transparency will eventually yield more competitive
1 These DSIPs contain more specific information about the goals and programs of each utility.
They are publically available through the REV dockets, and you can examine them for more
detail on specific DER opportunities and challenges, as well as plans for new investments such
as distribution management systems, advanced meter rollouts, and online marketplaces.

markets, and that those markets will eventually be able to accurately value technology attributes
and capabilities with reduced regulatory involvement.xviii In the relatively short term, the PSC
outlines a core set of specific needs and functions oriented around markets:
-

DSPs will procure grid service products such as peak load modifications, non-bulk
ancillary services, and load management to defer capital investments and enhance system
security.

DSPs will offer services and pricing to enable greater penetration of DERs and
utilityscale renewables.

Service providers will be able to develop new offerings based on their own assessment of
needs and products offered by or to the DSP. These offerings could include electricity
services such as fixed commodity pricing, demand response, and efficiency.

Over the longer term, DSPs will need to establish a standardized state-wide market, with
common protocols and market rules that will simplify customer engagement, reduce
barriers to entry, and enable product development and best practice transfer.

The DSP should facilitate interaction between the retail and wholesale markets.

DSPs should, when advantageous and cost effective, incorporate microgrids into system
planning.

In its February 2015 Order, the PSC notes that [b]uilding effective retail markets for DER will
require a much smarter and technology enabled platform for mass market consumers to gain
knowledge of the services available to them in the market.xix
REV - Rate Restructuring
Platform Service Revenues
The PSC sees Platform Service Revenues (PSRs) as a new form of utility revenue that will
facilitate the growth and health of distribution markets. These revenues will take time to evolve
into a specific, clear financial incentive, but the PSC has in the meantime imposed a set of
criteria to inform the process of defining them. In order for the utility to capture PSRs associated
with providing or procuring a service, they have to satisfy the following criteria:
-

The service facilitates market growth and/or operation

There isnt already a complete and adequately served third party market for the service

Utility economies of scale will likely result in cost-effective market stimulation

Utility provision of the service is unlikely to raise significant market barriersxx

In addition, although the overall structure of PSRs is still developing, the ratemaking order did
include some specific structural changes that should immediately affect utility investment
behavior. For example, the PSC allowed utilities to earn a rate of return on software leased from
third parties. The Northeast Energy Efficiency Partnerships organization (NEEP) argues that this
opens the door to third-party vendors offering software as a service (SAAS) tools for utility
use.xxi

Earning Adjustment Mechanisms

Given that PSRs need time to evolve, the PSC devised a transitional or bridge incentive: the
Earnings Adjustment Mechanism (EAM). EAMs are intended to achieve much the same overall
outcome as PSRs, and the PSC expects that in the long term EAMs will be phased out in favor of
exclusive use of PSRs.xxii Although in its May 2016 Ratemaking Order the PSC allowed a lot of
flexibility around EAMs, they did provide a handful of guidelines and rules. In particular, they
noted that the maximum amount of earnings from EAMs should be capped at 100 basis points
total from all new incentives (equivalent to 2.4% of delivery rates or 1.1% of total bills).
However, this cap can be allowed to float if a convincing case is made for high ratepayer value
from the incentive.
In addition to laying out guidelines and ground rules, the PSC proposed four categories of
earning opportunities for EAMs:
Peak Reduction/System Efficiency: The PSC seeks to cost-effectively reduce peak demand by
anywhere from 15-20%, as well as increase load factor on the grid. Rather than impose a specific
target, the PSC required each utility to put forward cost-effective targets for peak reduction and
load factor improvement.
Energy Efficiency: Energy efficiency EAMs will be connected to targets to be developed by the
PSCs Clean Energy Advisory Council, and will reward products that can optimally reduce
demand and increase the total amount of efficiency activity.
Interconnection: The PSC promotes EAMs for interconnection in order to incentivize high
quality applications, timeliness, and reasonable costs. This EAM is limited to projects of 50 kW
or greater, and involves: a threshold requirement that interconnection times be reduced to the
requirements indicated in New Yorks Standardized Interconnection Requirements rule; and a
metric (for determining the value of the EAM) that is based on application quality and
applicant/customer satisfaction.xxiii

Customer Engagement: The PSC did not adopt a general customer engagement EAM, instead
electing to approve, on a case-by-case basis, EAMs for actions that affect customer behavior.
This could include incentives based on customer adoption of time-of-use or smart rates, customer
enrollment in demand response and efficiency programs, and customer fuel switching (e.g.
electric vehicle or heat pump adoption). The PSC notes that proposals for customer engagement
EAMs should evaluate expected customer and system benefits.xxiv
REV - Other Elements and Challenges
The Clean Energy Fund
Managed by NYSERDA, the Clean Energy Fund is a 10-year, $5 billion fund that has four key
aims. $2.7 billion is allocated towards market development, which NYSERDA defines as
reduc[ing] costs and accelerat[ing] demand for energy efficiency and other behind-the-meter
[BTM] clean energy solutions, and increas[ing] private investment. xxv $961 million is allocated
towards the NY-Sun program, which has a target of bringing solar to 150,000 new homes and
businesses by 2020. $782 million goes to the NY Green Bank, which partner[s] with private
financial institutions to accelerate and expand the availability of capital for clean energy
projects. The remaining $717 million of the Clean Energy Fund is directed at innovation and
research in cutting-edge technologies in five key opportunity areas: smart grid technology,
renewables and distributed energy resources, high performance buildings, transportation, and
cleantech start-up and innovation development.xxvi
Market Development
Thus far, REV has been an object of both frustration and excitement, and stakeholders and
experts have identified a handful of challenges, risks, and difficulties that your team should
consider when devising a product or service. One shared frustration is the lack of an animated
market at this point in the process, with some disagreement about how to best resolve that
problem. A department manager at Consolidated Edison, the primary electric utility serving New
York City, noted that there needs to be emphasis and agreement on the problems that innovators
are trying to solve, that they have to evolve beyond thinking just about widgets and all the great
things the widgets do, and towards constructive partnerships that tackle real problems in the
power sector. One of the biggest frustrations identified to date is a lack of data, with many
vendors arguing that better data-sharing from utilities would enable them to come up with
superior solutions to utility challenges.xxvii
Data Access and Cybersecurity
Amidst the debate about increased data sharing and access, one major concern for utilities is
security and customer privacy. Industry leaders broadly agree that pairing greater and greater
quantities of data with analytics can yield tremendous benefits, from de-risking projects and

reducing uncertainty to understanding load profiles and developing targeted customer solutions.
The problem is that unlocking this set of value opportunities requires increasing the exchange of
confidential information that has traditionally been under the total control of the utility. Experts
and utilities worry about the cybersecurity headaches that this greatly expanded and more open
network of data-sharing will cause. As a March 2016 report from ScottMadden put it,
implementation of the DSP model will require a deluge of sensitive data to be shared among
utilities, consumers, and third parties, and the DSPP [DSP Provider] and all relevant third-party
entities will have to implement well-thought-out cybersecurity policies and solutions.xxviii

TECHNOLOGY CATEGORIES
Energy Storage
Storage forms a critical component for the success of New York REV and for meeting the State
Energy Plans target of reducing greenhouse gas emissions by 40% by 2030. The large gap
between peak demand (nearly 34,000 MW) and average demand (18,000 MW) has grown, and
this has several implications.xxix The systems utilization factor has declined and all components
across the system generators, poles, wires, transformers, etc. are sized to meet these high
peak loads that occur very infrequently. This leads to high inefficiency across the system, likened
to building a 16-lane highway to handle traffic that only occurs on three holidays a year. xxx In
addition, another key element of the plan (installation of Distributed Energy Resources) requires
readily available storage. Figure 1 demonstrates the criticality of storage for any DER option.
Fig. 1 Storage Use Casesxxxi

Because of intermittency, widespread adoption of wind and solar relies on stable and
costeffective storage. Storage can help address the minute-to-minute fluctuations from, for
example, clouds crossing the suns path, but it is also a critical tool for longer-duration
challenges with renewables. Appendix VI shows the famous duck curve of California, in which
load requirements during the afternoon period are dropping, as the maximum expected
generation from solar and other renewables occurs during these periods. Without storage, there is

a risk of over-generation and waste of generated solar, followed by a hasty and expensive
ramping of non-intermittent power sources in the late afternoon.
Storage has multiple other benefits besides improving the capacity value of renewables. The
widespread proliferation of storage technologies should allow utilities to defer investment in
transmission and distribution upgrades, provide peak shaving and frequency regulation services
to the grid, and, by adding a layer of control, aggregate and utilize localized storage as a grid
asset. The last piece is particularly important when considering the resiliency of the overall
system, where critical facilities such as hospitals and municipal buildings will require continued
service in the event of grid outages (such as those during Hurricanes Sandy and Irene), and the
availability of large aggregated storage will allow these facilities to continue functioning.
Research by the Rocky Mountain Institute also indicates that storage is most beneficial when
placed behind-the-meter as opposed to the transmission or distribution level (Fig. 2). Behindthemeter storage has value to residential customers as a back-up source and to commercial and
industrial (C&I) customers for demand charge reduction.
Fig. 2 Rocky Mountain Institute Economics of Battery Storagexxxii

Regulatory Support
The New York Battery and Energy Storage Technology Consortiums (NY-BEST) Energy
Storage Roadmap calls for 2 GW of multi-hour storage capacity by 2025 and 4 GW by 2030. xxxiii
Under REV, NYSERDA has awarded 7 New York-based companies contracts to scale-up or
demonstrate new approaches to storage these companies will deliver bench-to-prototype
technologies including:
-

Urban Electric Power, New York City: Advanced batteries for grid-based application that
use zinc-manganese-dioxide chemistry to reduce total cost.

Varta Microbattery, Hudson Valley: Minimizing the need for additional components in
Solar PV + Storage applications and developing an island interconnection device to
allow ease of connection and disconnection of microgrids.

Enermat Technologies, Clifton Park: Improving storage capacity of lithium-ion batteries

by commercialization of graphene-based electrodes.

American Fuel Cell, Rochester: Scaling up new fuel cell technology that allows for
reduced manufacturing costs against existing products.xxxiv

Pilot Projects
REV has also driven pilot projects, such as one between Con Edison, SunPower and Sunverge,
where behind-the-meter storage in residential developments is being integrated with the grid to
function as a virtual power plant (VPP) under the control of the utility. Over 300 homeowners
will lease SunPowers high-efficiency solar systems and, for an additional monthly fee, have
access to Sunverges battery systems, which will be connected to the solar system to provide
back-up power to certain essential appliances. The real value to Con Edison will come from the
ability to aggregate these manifold solar+storage systems as a VPP to supply the grid during peak
periods through the use of intelligent real-time monitoring and control systems. With a total
energy output of 4 MWh, this project will allow utilities to test dispatching and rate models,
software and hardware platforms and validate the assumption that combined PV+storage systems
can add value to the overall grid by adding a layer of reliability and improving power quality,
while at the same time allowing utilities to defer costly distribution upgrades.xxxv
Storage also forms an important part of Con Edisons Brooklyn/Queens Demand Management
Program (BQDM), where high load growth in the region means existing capacity will be
exceeded by 2018. Rather than building a new $1 billion substation, Con Edison proposes to
invest $200 million in customer-side load management strategies (of which storage will be a
part) and $300 million in traditional utility upgrades.xxxvi The BQDM program is discussed in
more detail under the demand management section of this case.

Significant Players
Tesla, AES and Aquion Energy (among many others) are some of the prominent movers in the
battery storage space. While Tesla and AES both offer lithium-ion solutions that do not differ
significantly from existing laptop and cellphone batteries, Aquion has chosen a different tack by
utilizing saltwater manganese oxide chemistry offering batteries that are cradle to cradle
certified.xxxvii (Other storage technologies include Lead-Acid, Nickel-Cadmium, Sodium Sulfur,
and a host of non-battery options such as Compressed Air (CAES), Thermal Storage, Flywheels,
and Pumped Hydro.xxxviii)
Stem, Inc. operates on a subscription model, in which customers do not own the asset, but instead
pay a monthly fee for a suite of services. Stem is responsible for the supply, installation and
operation of these storage assets. Stem assembles batteries from third-party manufacturers and
integrates software monitoring and control prior to installation. An early success of this model
has been the award from Southern California Edison (SCE) for 85 MW of distributed capacity in
the Los Angeles area, to be installed behind-the-meter by 2021 to serve as a flexible resource at
the command of the utility.xxxix
Geli, on the other hand, has chosen to focus purely on software and services, providing software
design and management tools for storage. This model relies on a set of software / firmware
drivers that are compatible with leading battery suppliers, and adds monitoring and control
capabilities to aggregated storage, thus allowing Geli to offer services to utilities as a controller
of distributed assets.xl
As DG penetration grows, battery technology matures, and storage prices continue their decline
(Appendix VII), the list of opportunities for market entrants in the energy storage space will
continue to grow. Opportunities include providing pure storage system software, non-intelligent
storage hardware, or integrated storage solutions that combine hardware and controls. Vendors
further can choose whether their play is residential behind-the-meter, C&I BTM, or utility-scale.
Constraints
Despite the obvious benefits of battery storage at both the utility and customer-level, several
barriers have historically existed to widespread deployment. xli The REV process is beginning to
break these down through utility business model revision and rate reform.
Nature of existing markets: In general, existing market and rate structures do not allow for full
compensation or incentivizing of DER and Storage. For instance, while utility programs or tariffs
such as energy efficiency, distributed generation etc. cover some areas, many other benefits such
as upgrade deferrals, frequency response or environmental impact have not been covered.
Limited availability of financing: In many respects, energy storage financing is where solar PV
was a few years ago no standardized processes that mitigate risks for investors, limited

thirdparty financing and loan guarantees as well as manufacturing incentives. This creates a need
for advanced analytics to help de-risk projects and lead to more standardized financing.
Sharing of information: For a robust storage market, all participants require complete information
on system capabilities, existing networks, customer needs by location, etc. in order to map out
the most effective places for DER services. Additionally, third-party service providers such as
energy service companies need information on customer accounts and usage, in order to tailor
and market their services.
Microgrids
In its most basic form, a microgrid provides improved reliability to clusters of users, by allowing
decoupling from the grid in case of outages and ensuring continued supply. This is particularly
pertinent in the case of New York, given its recent experience with Hurricane Sandy. New York
University (NYU) was one of the few locations in New York City that did not experience
significant power outages during the hurricane, due to the availability of a microgrid that
continued operating when the main grid was affected.xlii
Microgrids create value for regulators, utilities, and end-use consumers by combining several
disparate elements (Fig. 3). A typical microgrid could involve renewable energy elements such as
rooftop solar and small wind turbines; residential, commercial and grid energy storage; and most
importantly, monitoring and control that is constantly talking to the grid, all while leveraging
existing infrastructure and equipment.
Fig. 3 The many components of a microgridxliii

While current microgrids rely mostly on conventional energy resources such as natural gas and
diesel generation, renewables and storage are forming an increasing part of overall U.S.
microgrid capacity. 30% of capacity is expected to come from these two sectors by 2020.xliv
Regulatory Support
One of the key tenets of REV is to move towards a framework that nudges utilities to work with
developers to set up microgrids. Under the new structure, utilities stand to earn money by making
systems more efficient and resilient.xlv This is in contrast to business-as-usual, where utilities
would view a movement of consumers away from the grid as a threat rather than an opportunity.
The NY Prize (a partnership between NYSERDA and the Governors Office of Storm Recovery)
has allocated $40 million for communities that build their own energy systems, are able to supply
themselves and also provide power to critical community assets such as fire stations and
hospitals while supplying excess power to the grid. Under this program, more than 80
communities across the state have received $100,000 grants to study project feasibility, and Stage
2 applications are now open for detailed engineering and commercial assessments that evaluate
the feasibility of installing / operating a community microgrid within New York State with
funds of up to $1 million each available to 10 selected applicants, followed by Phase 3, which
will provide up to $7 million in funding to a maximum of 5 participants to support construction
of microgrids.xlvi Phase 2 and Phase 3 projects will require cost-sharing with the affected
communities.

Pilot Projects
National Grid has partnered with Clarkson University in order to develop a community
resilience microgrid for Potsdam with an underground distribution network and coordination of
new and existing distributed energy resources as a demonstration project under REV.xlvii This
project is meant to test billing models, control of microgrids, disaster recovery and DER
procurement. Working in close collaboration with the local government, the Canton-Potsdam
Hospital and SUNY Potsdam, the project team has analyzed National Grids existing customers
in terms of service recovery requirements, generated benefit-cost analyses incorporating societal
benefits (were critical fire, police and emergency medical services to be lost) and begun thinking
of different tiers of service to be offered through the microgrid.
Similarly, the Clean Coalition has partnered with the Long Island Power Authority and PSEG
Long Island to perform feasibility studies for the implementation of a microgrid in East
Hampton, Long Island. This microgrid would achieve almost 50% of its power requirements
from local solar resources, and would help defer or avoid multi-million dollar transmission
upgrades by combining up to 15 megawatts of solar power with a 25-megawatt-hour energy
storage system.xlviii The project would also provide back-up power to water pumping and
filtration plants, as well as fire-fighting facilities.
Significant Players
Total U.S. microgrid capacity is expected to exceed 1.8 gigawatts (or a total value of $3 billion)
by 2018. Much of the growth in this capacity is non-utility.xlix
Many microgrid plays are oriented around monitoring and control services. SolarCity has been
one of the pioneers in offering microgrids as a service, providing a range of customization and
financing options for municipalities, communities, hospitals, and other groups to install
microgrids under its GridLogic solution. SolarCitys value offering relies on the fact that
SolarCitys in-house grid engineering team will design and install each GridLogic project with a
system of software-based monitoring and controls that manage the mix of distributed energy
resources and utility power to maximize savings.l Siemens has taken a similar path by providing
Microgrid Software as a Service (MSaaS), where customers can choose to forego on-site IT
infrastructure, and instead allow Siemens to provide monitoring and control of distributed
resources over the cloud.li
Other providers offer control services primarily to utilities. General Electric offers monitoring
and control functionality under its Grid IQ Microgrid Control System, allowing grid operators to
control energy assets with the goal of minimizing the total cost of operation. lii ParetoEnergy,
based out of Washington, DC, has developed an interconnection solution called GridLink,
utilizing power electronics rather than mechanical switches to enable utilities to synchronize with
and control microgrids.liii

ABB has recently begun shipping a plug-and-play modular microgrid, with all components in a
single container. The microgrid can be scaled up to 4,600 kW to meet different demands. It
features battery storage, power controllers where the customer can plug in different sources such
as solar, wind, the grid or even diesel generators, and a cloud-based remote control system.liv
Constraints
Some of the same constraints that limit the market for storage (lack of developed markets,
limited availability of financing, protocols for information-sharing) have historically affected
microgrids. The problem is in part compounded, because microgrids are aggregates of many
different elements, (DERs, storage, grid controls, etc.) each with their own cost and financing
challenges. As costs of these individual elements decline, microgrids are expected to become
increasingly viable.lv
The fact that microgrids are generally highly customizable, and can be matched in various
configurations, makes a like-to-like comparison difficult. In addition, microgrids are typically not
entirely greenfield, but instead utilize existing grid assets such as distribution wires. S&C
Electric has identified different levels of microgrid implementation (Fig. 4), and this may provide
one way to analyze projects and identify how best to meet customer needs.
Grid stability has long been a concern for utilities, with the risk of unintentional islanding,
where a portion of grid becomes separated but is not completely shut down, posing a safety risk
to utility workers. However, the aforementioned market players have moved to address this
concern. In addition, the Institute of Electrical and Electronics Engineers (IEEE) has developed
international standards to guide the design and operation of DER systems in concert with the
grid, thus providing a common reference point for different users.lvi
Fig. 4 Levels of Microgrid Implementationlvii

Distributed Generation
The number of distributed power generators has grown prodigiously across the country in a short
amount of time, soaring from just over 17,000 in 2005 to over 200,000 by 2014, according to the
U.S. Energy Information Administration (EIA).lviii Distributed generation can refer to any power
source that is located close to where it is used, as opposed to the traditional generation model of a
power plant on a grid connected to energy users who may be many miles away. But while this
term can include geothermal, diesel engines, and other energy sources, rooftop solar panels have
been the most important distributed technology driving the boom. As costs of photovoltaic solar
have fallen about 54% since 2008lix and novel financing methods have arisen, rooftop solar has
become an increasingly feasible choice for homes and businesses to install. For example, in
September 2016, the 35,000th rooftop solar installation in New Yorks Long Island was
completed, adding up to 320% growth in solar over four years.lx
New York also hits above its weight class when it comes to solar. Despite gloomy winters
contributing to an overall below average amount of solar resources, New York has similar or
even greater potential to use distributed solar to offset the total sales of electricity by utilities
compared to more naturally sunny states like Arizona and Texas, according to a recent study
from the National Renewable Energy Laboratory.lxi Part of the reason for that potential is the
states relatively high number of rooftops that are particularly suitable for solar generation.
New York Governor Andrew Cuomo has laid out a goal of adding more than 3 GW of solar
capacity in the state by 2023. Cuomos NY-Sun Initiative offers a set of incentive programs for
rooftop solar to help residences and businesses meet that goal.
Grid Infrastructure
REV aims to shore up distributed generation in New York by removing barriers that prevent
customers from receiving the full value of the power they self-generate, as well as setting up new
potential sources of revenue for distributed power. Beyond building a direct path, REV also aims
to indirectly facilitate distributed generation by fostering a transmission and distribution
environment in which it can thrive. This broadly entails 1) optimizing the electric grid to allow
for two-way flows in a market where the electric consumer is also generating his or her own
power for the grid and 2) installing advanced meter infrastructure.
Advanced meters can help distributed solar unlock its full economic potential. The Federal
Energy Regulatory Commission (FERC) defines advanced metering infrastructure as a metering
system that records customer consumption hourly or more frequently and that provides for daily
or more frequent transmittal of measurements over a communication network to a central
collection point."lxii

A customer using distributed solar power is saving resources in the sense that when electricity is
being generated by the solar panels, the wires connected to the utilitys system are not being
tapped. But if that customers electricity usage is only being tracked by a conventional meter,
read just once a month, it is difficult to gauge the system contribution made by the solar panels.
But with smart meters that can be read on an hourly basis or less, the amount of energy that
comes from distributed generation can be tracked and more easily turned into cost savings to
reflect the expensive, wires assets that were not used.
One of the key tenets of REV is that non-wires alternatives (NWAs) to solving electric load
problems should be pursued wherever feasible in order to further push the utility away from
building and managing expensive assets like transmission and distribution infrastructure and
more toward facilitating the consumer. While non-wires alternatives cover a host of technologies
beyond just DG, like storage and demand response, smart meters combined with distributed solar
panels are one powerful way to make these alternatives a reality. Con Edison has predicted it
could save substantially in deferred substation and subtransmission projects through NWAs.
Fig. 5 Con Edison Capacity Savings through NWA investmentlxiii

But on this point New York faces a big challenge if it is to switch to a dynamic model of a grid
that encompasses both sides of the utility meter and relies increasingly on distributed resources
and dynamic load management, as the PSC laid out in its Track 1 REV order. New York ranks at
almost the bottom of the pack of the 50 states in terms of advanced meter penetration, according
to a 2014 survey from the EIA. lxiv The survey found that just 0.4% of New Yorks meters can be
considered advanced, 49th out of 50 states, and compared to 96% and 92% for Nevada and
Maine, respectively, the top two states on the list.

Under challenges to achieving REV objectives across its service territory, in a June 2016 filing
National Grid noted that only 0.3% of its customers have interval meters and that more than
50% of the distribution line miles operate below 5 kV and as such have limited capacity to host
significant distributed energy resources.
In part due to efforts associated with REV, however, New York could start catching up. In 2015
Con Edison announced plans to install 4.7 million smart meters for its gas and electric customers
at a cost of $1.3 billion.lxv
One REV demonstration project pursued by utility National Grid provides an early example of
what distributed solar in New York could ultimately look like. In collaboration with Solar Liberty
and Buffalo Niagara Medical Campus (BNMC), National Grid is installing 500 kW worth of
solar PV arrays on the rooftops of 100 homes adjacent to the BNMC in Buffalo. The Fruit Belt
Neighborhood solar project, as it is called, will provide a monthly electric bill credit to the 100
customers for the output of the panels. In addition, fifty other customers in the neighborhood
who are not hosting panels will, through lottery, be selected to also receive a credit. lxvi The
project, scheduled to be completed in October 2017, therefore simulates one of the main goals of
REV: compensating distributed solar not only for the power it directly produces but also for the
greater societal benefits it achieves by reducing peak loads and deferring the need for new
centralized generation and grid infrastructure.
DGs value grows when it is combined with other technologies. This summer, Con Edison began
a demonstration project to integrate residential solar with battery storage for over 300
homeowners.lxvii SunPower will provide the solar systems, which will be connected to Sunverge
battery systems. Con Edison will use the pilot to examine if this combination of solar and storage
can turn a residential area into a virtual power plant to supply the grid during peak demand times.
SunPower is a solar panel manufacturer that also sells complete solar systems, like its Helix
platform. Previously, SunPower provided Con Edisons energy services company, ConEdison
Solutions, with solar systems that ConEdison Solutions can lease to homeowners for up to 20
years, while SunPower offers a 20-year warranty and production guarantee. SunPower has been
considered the second-largest solar panel manufacturer in the US after First Solar.lxviii
Net Metering
REV also seeks to eventually transition New York away from net metering.lxix As the net metering
debate consumes the clean energy conversation in states like Nevada, New York regulators want
to create market conditions in which distributed generation can receive a direct rate that captures
its full value. Regulators and stakeholders in the state are working on an idea to value distributed
energy at what has been called LMP + D. LMPs are locational marginal prices the
marginal price of energy calculated at specific locations on the grid. The D portion contains a
range of benefits that distributed energy can provide for the energy system that are not currently
valued. These 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, according to the PSC.lxx
On October 31, the New York Department of Public Service released a paper that called for
existing solar projects to receive the full retail-rate net metering credit for 20 years from the date
of a projects installation. New projects, however, would receive the credit through 2020, after
which the credit would decline until it aligns with the LMP+D value.lxxi
As this valuation process continues, New York distributed generation is in a unique position to
expand. Up until recently, New York regulators dealt with concerns about net metering by
capping the amount of net-metered energy based on a percent of a utilitys electricity demand. lxxii
But in October 2015 the PSC temporarily removed the cap on net-metered solar energy and
ordered that the ceiling on net metering should be allowed to float until the REV process is
further along.
Fig. 6lxxiii

Interconnection
One challenge for distributed generation in New York is a heavy backlog of interconnection
requests. A new distribution generation user proposing a project of a certain size must apply to
his or her utility and meet a set of requirements laid out by the PSC, known as the Standardized
Interconnection Requirements. The states interconnection queue has grown at an
unprecedented rate over just the past year as more and more home solar users try to get their
systems running, according to the Acadia Center.lxxiv But some groups complain that projects that
have been abandoned but never bothered to formally withdraw are clogging up the queue of
projects for interconnection approval, thus delaying solar projects that are otherwise ready to go.

New York has tried to reform and simplify the interconnection process with steps like increasing
the minimum size of distributed systems that must meet the requirements from two megawatts to
five megawatts.lxxv But these reforms only apply to projects submitted after the effective date of
the new rules, meaning they did not by themselves clear up the existing backlog. Since
establishing minimum barriers to entry for clean energy technologies is one of the key
objectives of REV, proposals to help distributed generators navigate the unwieldy
interconnection process could be important for New Yorks broader energy transformation. A
community solar model is one way to potentially solve some of New Yorks interconnection
woes. For example, under the NY-Suns Shared Solar program, a sponsor, which could be a
private developer of a project, or another private company or entity, can propose a community
solar project and band together groups of renters, homeowners, businesses, and municipalities
and apply to share in the projects ownership and resulting electric bill reductions.lxxvi
Future Risks
Dark clouds over distributed solars future include uncertainty over future rate design, the
potential for punitive fixed charges, and the eventual sunsetting of the Solar Investment Tax
Credit (ITC). The ITC deducts 30% of the cost of the system from the claimants taxes. The
credit has created a market for many solar projects that would otherwise be uneconomic. But
under legislation passed by Congress at the end of 2015, the credit will be reduced to 26% in
2020, 22% in 2021, and 10% from 2022 onwards.
One of the most controversial aspects of the future of rooftop solar in New York revolves around
the question of ownership. The PSCs 2015 REV Framework order declared that utility
ownership of DER will be the exception rather than the rule under REV: A basic tenet
underlying REV is to use competitive markets and risk based capital as opposed to ratepayer
funding as the source of asset development, the order said. "Utility ownership of DER conflicts
with this objective and for that reason alone is problematic." lxxvii Exceptions where the PSC has
said it will be open to utility ownership, at least in the short term, include the REV demonstration
projects, as well as instances where a public interest for a distributed resource has been
identified, but a market solution has not yet materialized for example, a program for low to
middle-income customers to save money through rooftop panels.

Demand Management
From a system perspective, managing and reducing customer demand is among the lowest-cost
approaches to solving a number of REV goals, including peak demand reduction. Peak demand
reduction is one of REVs most important aims. The PSCs Track 2 REV order mandates that
each state utility propose targets for reducing their peaks over the next five years. Peak reduction
is particularly important to REV because of how many capital-intensive generation, transmission,
and distribution assets exist to service load at the few times of day when peaks are at their
highest. REVs aim is to replace these assets as much as possible with distributed tools that, due
to lower costs, are more within reach of the typical consumer. Utilities and their industry
partners should be encouraged to innovate and build policy priorities into their enterprise-wide
business plans, as opposed to simply carrying out defined tasks that are dictated by the
Commission, the PSC order said. For example, Con Edison believes it can avoid building a $1
billion substation to service the grid in Brooklyn and Queens and instead spend just $200 million
on non-traditional solutions that will defer the need for the substation until 2026 by cutting
electricity demand.lxxviii
In a REV project that shows how demand side management runs the gamut of viable REV
technologies, Con Edisons Brooklyn Queens Demand Management (BQDM) Program was
approved by the PSC in December 2014. In August 2016, Con Edison approved a number of
awards for third parties to take part in the project and provide 22 MW of demand response to cut
peak load in two periods, from 4 pm to 8 pm and 8 pm to midnight. lxxix Stem Inc. will provide
battery storage systems, while a number of other companies, such as EnerNOC Inc. and Direct
Energy, will try to sign up Con Edison customers to agree to curtail energy usage or deploy
distributed technologies like solar or storage during peak hours.
Fig. 7lxxx

Boston-based EnerNOC Inc. sells software to businesses for a range of energy purposes such as
tools to collect data on sustainability goals or analysis of how a distributed solar system is or
isnt saving money. EnerNOC also has products specific to utilities such as software to
coordinate demand response. The company recently announced it would be reducing its global
workforce by about 15% as it restructures its subscription-based energy intelligence software
business to focus on more specific industry segments and high potential customers.lxxxi
Direct Energy, headquartered in Houston, rose to prominence as electricity deregulation, mainly
in the 1990s, opened many regional markets to alternative electricity suppliers. On a competitive
basis, the company buys electricity or natural gas wholesale and supplies it to retail customers in
many parts of the country. More recently, Direct Energy has tried to sweeten the deal for
electricity customers by bundling the retail services with technologies like the smart thermostat
made by Alphabet Inc.s Nest Labs.lxxxii But another focus for the company is a commercial and
industrial services business. To help sell services such as energy auditing in the New York
market, in 2014 Direct Energy purchased a demand response management system from a
vendor.lxxxiii Direct Energy has several other lines of business, such as Direct Energy Solar, which
designs and installs solar systems for residential and commercial customers.lxxxiv
For an example of the times utilities need to target for peak reduction, here are National Grid's
times of peak electricity demand over the past several years.lxxxv
Year
2011
2012
2013
2014
2015

Date of Peak
7/22/2011
7/17/2012
7/19/2013
9/2/2014
7/29/2015

Time of Peak
Hour ending 5 PM
Hour ending 3 PM
Hour ending 6 PM
Hour ending 5 PM
Hour ending 5 PM

Data
REVs demand management goal illustrates a pervasive theme: the importance of data sharing,
and particularly data sharing between utilities and third-party technology providers, if the state is
going to be able to fully harness and enable innovative technologies. Large amounts of data are
needed to facilitate demand and peak forecasting, coordinate hundreds of thousands of
distributed energy resources across the grid, provide necessary visibility for system planning, and
achieve many other elements of REV.
In a 2015 interview,lxxxvi New York state Energy and Finance Chair and key REV architect
Richard Kauffman explained why data is so critical for the whole process with a comparison to
Apple and its model of third-party app development: "Theres a virtuous cycle that takes place,
where the more Apple invests in the platform to make it valuable to the app developers, the more

Apple gets paid back in revenue," Kauffman said. Thats the kind of dynamic we need to create
between the utilities and third parties.
Data is particularly critical for demand reduction because many of the tools for analyzing,
predicting, and controlling peak load are only as powerful as the data they receive. Some REV
demonstration projects are trying to set a precedent as to how data can be shared. In Ithaca, N.Y.,
Avangrid, the subsidiary of Spanish multinational Iberdrola and the parent company of utilities
New York State Electric and Gas and Rochester Gas and Electric, is planning the Energy Smart
Community, which they describe as a "test bed of a variety of REV initiatives." lxxxvii The project
entails 12,000 smart meters to be rolled out in Ithaca to improve customers ability to manage
their energy use.
But to further enhance the feedback given by these smart meters, Iberdrola is combining the
project with several other software tools: Customers will have access to an online portal where
data from their smart meters will combine with other information to create personalized
recommendations about an individual consumers energy usage. Data will generate a heat map to
identify constrained regions on the distribution network that could be improved through REV
technologies like distributed generation or storage. Customer usage data will be used as granular
information for vendors to propose behavior-based demand response programs.
Behavioral Incentives
But while better data analytics might help the response to changing consumer behavior, New
York also wants to directly influence behavior with new incentives for consumers to manage
their peak energy use. In many parts of the country, regulators have begun this shift by instituting
time-of-use rates variable electricity rates that increase in peak hours and decrease in off-peak
hours. But while nationwide adoption rates of opt-in time-of-use rates are around 25%, for New
York utilities adoption is between just 0.1% and 1.9%, the PSC pointed out in its May order.lxxxviii
A potential solution to this problem of low adoption, the PSC staff has proposed, is for electric
rates in New York to move to what have been dubbed "Smart Home" rates. These rates, outlined
in a PSC white paper,lxxxix would combine time-of-use rates with "LMP + D" compensation (see
section on distributed generation for more info on LMP + D.) The PSC has ordered utilities to
work with the state and third-party developers on projects to demonstrate Smart Home rates.
"The ideal SHR participant will combine generation (such as PV), electric vehicle charging,
storage, and load management (such as a smart thermostat) with an inverter that allows two-way
power flows and reads voltage and other system characteristics," the PSCs Track 2 order said.
Outside of the smart home rate, the PSC regards increased adoption of time-of-use rates as a
desirable goal of the customer engagement piece of the REV process.

Demand Response
Demand response is the catch-all term for a variety of services that essentially play the role of a
negative power plant. Instead of producing electricity, demand response decreases electricity
use among customers. Like a power plant, a grid operator can dispatch demand response at
certain times when curbing power is most advantageous for the grid or utility.
Changes in technology over time have transformed demand response from a small-scale, manual
process, into an increasingly sophisticated and automated product that regulators see as a central

component, alongside distributed generation and two-way power flows, of the 21 st-century grid.
Decades ago, utilities would literally pick up the phone and call large corporate customers and
ask them if they could turn off certain pieces of equipment in order to cut load at certain times.
Today, mobile apps on smartphones can control energy systems in real time, turning a home or
business into a virtual power plant, generating negawatts that can smooth peak load on the
grid, regulate grid frequency, and ease the integration of intermittent renewables that might
produce power at inconvenient times.
Demand response still exists in large part as a bilateral deal in which utilities pay customers to
not produce electricity at certain times. But demand response has been evolving into a more
holistic set of tools that cut or shift electricity usage, often with the help of advanced software
and data analytics. Navigant Research has estimated that the product category of demand
response management systems, which includes software to communicate between the customer
and distribution network and manage electricity to hit load reduction goals, could grow from
$46.1 million in 2016 to $232.3 million in 2025. xc High costs and complexity, however, have
slowed adoption of these systems.
The New York Independent System Operator has calculated that demand response as it currently
stands in the state can be the equivalent to the output of two medium-sized power plants serving
about 300,000 to 400,000 households. But that role is still small compared to other forms of
energy.xci Fig. 8

REV seeks to enable and grow a technologically-advanced, user-friendly form of demand

response, primarily in order to significantly reduce peak demand (see earlier section on REV for
discussion of peak reduction goals). But the PSC also sees demand response as an indispensable
tool alongside energy storage to enhance the cost-effectiveness of weather-variable and
intermittent generation.
Demand response is also an enabling service for another technology that can help achieve REV
objectives: electric vehicles. An ancillary benefit of electric vehicles is that utilities could help
reduce peaks: the charge contained in electric vehicles could be essentially tapped as a
distributed resource, and some utilities like Southern California Edison have already explored
this potential.xcii As a result, the PSC has mentioned that one step utilities could take to benefit
from an earnings adjustment mechanism under REV is to adopt programs to encourage electric
vehicles.xciii
Energy Efficiency
While demand response focuses on short-term alterations of electricity use in order to reduce
peaks and improve load factors, energy efficiency is about improving customers overall
efficiency. Examples of efficiency incentives include rebates for more efficient appliances or
incentives for residences to install smart thermostats to automatically control heating and
cooling. New York had previously mandated these sorts of programs through an Energy
Efficiency Portfolio Standard that was adopted in 2008 with the goal of saving 15% of energy by
2015.xciv But with the expiration of this standard in 2016, regulators are seeking new ways to
expand energy efficiency.
In September 2016 Con Edison reached an agreement with regulators to implement $99 million
of efficiency programs and cut 0.7% of its load by 2019, above the 0.3% in cuts previously
proposed under Con Eds plan to fulfill the Energy Efficiency Portfolio Standard.xcv
The PSC recommended that regulators offer utilities a positive earnings adjustment if they meet
efficiency goals, and also recommended they require that at least 10% of incremental peak
reduction be achieved through efficiency. To accomplish such goals, the PSC wants utilities to
work with third parties that can bundle energy efficiency with other distributed energy resources.
The energy intensity of efficiency improvements can be measured toward these goals in a
number of ways, such as kWh per capita, kWh per customer and kWh per GDP.
REV demonstration projects illustrate how efficiency can work in concert with solar, storage and
other technologies. Such projects include Con Edisons CONnectED Homes, a platform that Con
Edison is developing in collaboration with energy management software company Opower.
Targeting Con Edison customers in Brooklyn and Westchester County, the project will try to
overcome a lack of customer understanding about how to best manage their energy usage.
Specifically, Con Edison wants to develop personalized recommendations for bundled distributed
energy solutions based on each customers unique energy consumption patterns. Opower will
provide the software analytics platform that customers can use to figure out what products or
services such as smart thermostats, energy audits, battery storage, or rooftop solar would
make the most sense for them based on cost, and match the customer with a vendor. Con Edison
sees several potential revenue streams from the project, including:

Lead and conversion revenue from fees paid by service providers.

Revenue from retail sales made when Con Edison buys products and services wholesale
and turns them around to customers.

Advertising revenue from fees paid by third-party providers who want access to the
platform.xcvi
Recently acquired by Oracle Corp., Opower provides a variety of software solutions to help
consumers manage home energy use. Utilities are a major customer base for Opower, as the
company offers utilities software and other tools designed to improve their demand response and
efficiency programs. The company has a tight relationship with the biggest New York utilities. In
addition to selecting Opower for the REV project, Con Edison has also brought them on to
support an initiative to upgrade the utilitys website with more tools for consumers to understand
their energy use.xcvii Con Edison announced that agreement with Opower in March 2016, and that
same month National Grid said it selected Opower to deliver personalized energy insights to
customers in New York, Massachusetts, and Rhode Island, including nearly 3 million NY
residents.xcviii

APPENDICES
Appendix I: 2015 NY Average Net Electricity Generation, by Source (excluding DG)xcix

Other
2%

Petroleum SolarThermaland
PV
1%
0%
Coal
2%

Wind
3%

Hydroelectric
Conven9onal
19%

Nuclear
32%

NaturalGas
41%

Appendix II: Electric Energy Usage Trends in New York State: 2000-2025c

Appendix III: Electric Peak Demand Trends in New York State: 2000-2025ci

Appendix IV: Regional Load and Capacity in New York Statecii

Appendix V: Distributed Solar Photovoltaics in New York: Historic & Forecastciii

Appendix VI: Californias Duck Curveciv

Appendix VII: Changing PV and Battery Costscv

Appendix VIII: Example of Time-of-use rates from Orange & Rockland Utilities cvi

i
ii

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xxi

xxii

xxxvi

xxxvii

xxxix

xl

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xxix
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xxxiv
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xlvi
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lx
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lxiv
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lxvi
National Grid Initial DSIP.
lxvii
https://www.coned.com/newsroom/news/pr20160613.asp lxviii
http://news.energysage.com/best-solar-panel-manufacturers-usa/
lxix
http://www.bdlaw.com/news-1892.html
lxx
http://blog.sandw.com/energyfinancereport/topic/lmpd
lxxi
https://www.greentechmedia.com/articles/read/new-york-resets-distributed-energy-rates-maintains-residentialnetmetering
lxxii
http://programs.dsireusa.org/system/program/detail/453
lxxiii
https://enerknol.com/new-york-electric-utilities-and-solar-companies-partner-to-revalue-solar/ lxxiv
http://acadiacenter.org/interconnection-reform-good-for-the-grid-and-the-climate/
lxxv
http://www.irecusa.org/2016/03/new-york-takes-first-steps-to-update-interconnection-for-a-distributedresourcesfuture/
lxxvi
https://www.nyserda.ny.gov/All-Programs/Programs/NY-Sun/Communities/Shared-Solar

lxxvii

Order Adopting Regulatory Framework and Implementation Plan, New York PSC, Case 14-M-0101, February
26, 2015. lxxviii Con Edison Initial DSIP
lxxix
http://www.utilitydive.com/news/coned-awards-22-mw-of-demand-response-contracts-in-brooklynqueensproject/424034/
lxxx
https://conedbqdmauction.com/
lxxxi
http://investor.enernoc.com/releasedetail.cfm?ReleaseID=990674 lxxxii https://www.directenergy.com/nest
lxxxiii
http://www.utilitydive.com/news/with-new-control-technology-demand-response-set-to-becomeoperationaltool/428247/ lxxxiv

https://www.directenergy.com/docs/der191031_mch_fly_FactSheetsUpdates_7LRc.pdf lxxxv National Grid Initial

DSIP, filed with New York PSC in Case 14-M-0101, June 30, 2016. lxxxvi
http://www.vox.com/2015/11/20/9769856/new-york-kauffman-interview lxxxvii Rochester Gas and Electric,
Reforming the Energy Vision Demonstration Project Assessment Report, March 15, 2016. lxxxviii Track 2 order. lxxxix
New York PSC, Staff White Paper on Ratemaking and Utility Business Models, Case 14-M-0101, July 28, 2015.
xc
https://www.navigantresearch.com/research/demand-response-management-systems xci
http://www.nyiso.com/public/webdocs/markets_operations/services/market_training/workshops_courses/Training_C
ourse_Materials/NYMOC_MT_ALL_201/Demand_Response.pdf
xcii
http://www.greentechmedia.com/articles/read/sce-tests-electric-vehicles-for-demand-response xciii
Track 2 order.
xciv
http://energy.gov/savings/energy-efficiency-portfolio-standard-0 xcv https://www.nrdc.org/experts/milesfarmer/con-edison-commits-significant-new-efficiency-programs xcvi Con Edison Connected Homes Platform
Demonstration Project, July 2015. xcvii https://opower.com/news-and-press/con-edison-selects-opower-customerxcviii
engagement-initiatives/
https://opower.com/news-and-press/national-grid-expands-opowers-customerengagement-efficiency-programto-entire-u-s-service-territory/ xcix Energy Information Administration 2015 data by
state, Total Electric Power Industry. c NYISO Power Trends Report. ci NYISO Power Trends Report. cii NYISO
ciii
civ
Power
Trends
Report.
NYISO
Power
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Report.
cv
http://www.caiso.com/Documents/FlexibleResourcesHelpRenewables_FastFacts.pdf
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oru.com