New York is on the path to transforming its electric industry. Since the Reforming the Energy Vision (REV) proceedings kicked off with the goal of creating a more robust and efficient electric grid, the State is now a step closer in the quest to reduce greenhouse gas emissions by 40 percent from 1990 levels. And, thanks to the New York Public Service Commission (PSC), the road is looking a lot smoother.
Last month, the PSC rolled out the Benefit Cost Analysis Order, a methodology for how electric utilities should weigh the costs and benefits of proposed investments that affect the grid. With this new order, utilities will be required to calculate the net benefits associated with portfolios of distributed energy investments, such as rooftop solar and energy storage, and compare them with traditional utility investments, like substations, power lines, and poles.
This decision is crucial for New York’s clean energy future because utilities must now value the environmental benefits of distributed energy sources, and quantify how these different alternatives can work together to create a cost-effective, resilient grid. For example, in the face of severe congestion on the grid, utilities could expand the electric system to meet growing demand. Alternatively, they could incentivize a number of different distributed resources to help bring demand down by, for instance, encouraging customers to install solar panels, participate in demand response programs, or invest in energy efficiency to avoid a grid expansion. Read More