{"id":6919,"date":"2014-04-24T11:14:45","date_gmt":"2014-04-24T16:14:45","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=6919"},"modified":"2015-12-21T12:44:09","modified_gmt":"2015-12-21T18:44:09","slug":"new-york-among-the-first-states-to-re-evaluate-its-utility-business-model","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2014\/04\/24\/new-york-among-the-first-states-to-re-evaluate-its-utility-business-model\/","title":{"rendered":"New York Among the First States to Re-Evaluate its Utility Regulatory Framework"},"content":{"rendered":"
\"By<\/a>
By Doc Searls via Wikimedia Commons<\/figcaption><\/figure>\n

For most people, thinking about electricity is confined to two possible events: the arrival of the monthly bill and when the power goes out. The fact that most people don\u2019t think about their electricity outside these two events — and let\u2019s hope the latter is infrequent — is a testament to the robust regulation that has shaped the structure of the electric grid.<\/p>\n

But cracks are forming that threaten the very foundation of the existing regulatory compact between utilities and customers. Extreme weather events<\/a> caused by climate change and evolving consumer trends are testing the viability of the electricity system. The regulations that were crucial for maintaining stability in the 20th<\/sup> century are now forming barriers that make it difficult for utilities to adapt for a future that is fast approaching.<\/p>\n

Spurred by these issues and encouraged by rapid advances in technology, the New York State Public Service Commission today<\/a>\u00a0initiated a proceeding to proactively identify solutions that will maintain reliable and affordable power while transitioning to a future that allows for more customer control and greater grid efficiency.<\/p>\n

In a move that could have national implications, New York is now at the forefront of states looking to find answers to a rapidly-evolving energy industry. The order is the beginning of a discussion that will focus on how best to prepare for a future<\/a> in which electric vehicles, rooftop solar panels, and other types of local, on-site power generation are commonplace.<\/p>\n

Under the current regulatory environment, the needs of utilities and customers are bound together. Utilities are given the leniency to act as monopolies in a geographic area. In exchange, they are required to provide reliable service to everyone and have a right to recover the costs of providing this service.<\/p>\n

With more available solar and wind energy, better energy efficiency, and more power coming from on-site, local sources rather than from centralized power plants, a model<\/a> that incentivizes utilities to sell increasing amounts of electricity every year is unsustainable.<\/p>\n

Over the next year, New York regulators and stakeholders will work to better understand these issues and find an equitable solution that allows for a modern, intelligent, interactive electricity system<\/a> designed to maximize renewables, efficiency, and customer choice.<\/p>\n

To be clear, this proceeding is not a destination, but a significant step towards a future where people have the option to play a greater role in how they use energy. EDF applauds the state for taking a call to action that will reverberate across the country.<\/p>\n","protected":false},"excerpt":{"rendered":"

For most people, thinking about electricity is confined to two possible events: the arrival of the monthly bill and when the power goes out. 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