Late last month, New York took a major step toward rethinking utility economics when it issued the “Order Adopting a Ratemaking and Utility Revenue Model Policy Framework” (also known as Track 2 Order). This action aims to better align New York’s electricity system with Reforming the Energy Vision (REV), the state’s initiative to transform the electric grid into a cleaner, more efficient, and affordable system.
But buried in this 180-plus page document is another important development for New York’s clean energy future: Nearly 10 pages are dedicated to re-examining the state’s controversial standby tariff.
Frequently cited as a major obstacle to distributed power generation (e.g. combined heat and power (CHP) systems, rooftop solar panels, energy efficiency, and storage), the standby tariff is a special electricity rate charged to large commercial and industrial customers who produce some of their own electricity but remain connected to the grid. While utilities say they need standby tariffs to recover the costs of maintaining a reliable electric grid, many potential and existing large electricity customers producing their own power see standby tariffs as perversely designed to undermine the business case for distributed generation.
Unless the standby tariff is fixed in a manner that clears the way for investment in customer-owned and sited distributed generation, it will be hard to make REV’s revolutionary vision for a decentralized, competitive electricity market a reality. Read More
New York City may not be the place that comes to mind when you think of clean air, but NYC has done tremendous work in improving air quality – and now our neighbors in upstate Westchester County are following suit.
Seeing the positive health impacts from the phase-out of highly polluting heating oil in NYC, the Westchester County Legislature yesterday approved a resolution to phase out No. 6 and No. 4 oil in their buildings over time – No. 6 heating oil by 2018, and No. 4 oil by 2020.
These oils emit fine particular matter (PM2.5) and harmful chemicals like sulfur dioxide. When burned, they can become lodged in the lungs and worsen respiratory and cardiovascular issues. There were only a few hundred such buildings in Westchester county – compared to thousands in NYC – but that was still too many for Westchester officials to rest on their laurels. The county legislature went to work cleaning their air, and that work is paying off. Read More
Throughout the United States, utilities earn a profit through a tried and true regulatory model that has worked well for over 100 years. This model was built on the assumption that customers would use ever increasing amounts of electricity, and it worked for some time. But, as the need to save power and make electric systems more efficient becomes essential to adapt to climate change, this and other assumptions no longer hold true. Without changing how utilities are compensated, we run the risk of experiencing a true irony: utilities, the cradles from which our modern civilization rose, may become the chains preventing us from advancing toward a clean energy future.
Last week, the New York State Public Service Commission (PSC) – which regulates the state’s utilities – took action to transition to a new model aligned with Reforming the Energy Vision (REV), the state’s initiative to transform the electric grid into a cleaner, more efficient and affordable system. By issuing the “Order Adopting a Ratemaking and Utility Revenue Model Policy Framework,” the PSC is changing how New York’s utilities will be compensated, taking a major step to break the chains holding utilities back, and moving from a system where utilities get paid according to how much electricity they sell to one where utilities are compensated for producing environmental benefits aligned with the public good. Read More
Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.
Top clean energy conferences featuring EDF experts in June:
June 19-21: Citizens’ Climate Conference & Lobby Day (Washington, D.C.)
Speaker: Michael Panfil, Director of Federal Energy Policy and Senior Attorney
- Citizens’ Climate Lobby is a non-profit, non-partisan, grassroots advocacy organization focused on national policies to address climate change. Attendees will hear speakers and receive training to speak on this issue on behalf of future generations. The conference’s keynote speaker is Dr. Michael Mann, Distinguished Professor of Atmospheric Science at Penn State University and director of the Penn State Earth System Science Center. In 1998, it was his research – conducted with Raymond Bradley and Malcolm Hughes – that led to the famous “hockey stick” graph that shows the alarming rise in average global temperatures during the 20th Century.
Superheroes are all the rage these days. Whether at the theater or on our TV screens, we are surrounded by stories of powerful men and women working to make the world a better place.
And what would a good superhero be without a thriving metropolis to defend? If you want a great setting for your hero, look no further than New York. Known by a variety of names in the comics (Gotham, etc.), New York is where heroes go to prove themselves and save the day.
But what if I were to tell you that superheroes are not only real, they are being placed in public and private organizations around New York this summer to work towards making our city and state more energy efficient? Read More
New York is preparing for a future in which clean, distributed energy resources – such as energy efficiency, electric vehicles, rooftop solar panels, and other types of local, on-site power generation – form an integral part of a more decentralized electric grid. This is the future the New York Public Service Commission (PSC) wants to see realized through its signature initiative, Reforming the Energy Vision (REV).
This vision means the role of the customer is changing: from recipient to both user and provider of electricity and other grid services. By investing in clean, distributed energy resources, customers can make the electric system more efficient and contribute to a cleaner environment, while gaining greater control over their energy bills. Read More