Value of Distributed Energy Resources Proceeding

The Reforming the Energy Vision (REV) proceeding has, among other things, called for a level of Distributed Energy Resources (DERs) penetration that far exceeds current levels. To effectively and efficiently finance the level of penetration proposed, REV introduced a transitioning mechanism that will more accurately compensate the proposed DERs. The goal of the Value of Distributed Energy Resources (VDER) is to develop accurate and more granular pricing for DERs that better aligns with the actual value DERs generate. To encourage utilities, DER developers, and customers to help advance DER projects, business models and pricing will need to offer improved compensation mechanisms and other incentives. This proceeding aims to support increased DER penetration, while optimizing the benefits provided by DER installations.

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REPORTS

Regulatory Orders

Order Regarding Farm-Based Distributed Energy Resources
April 20, 2018Case 15-E0751 | On January 14, 2016, a Petition to Modify Community Net Metering Order to Incorporate Farm and Community Program (2016 Petition) was filed by Vanguard Renewables. On May 5, 2017, a Petition for Farm Distributed Generation (2017 Petition) (collectively with the 2016 Petition, the Petitions) was filed by Dairy Farmers of America, Agri-Mark Inc. and Vanguard proposing establishment of a Farm Distributed Generation (FDG) program. This order reflects these Petitions.

Order Modifying Standardized Interconnection Requirements
April 19, 2018Case 15-E-0751 | By this Order, the New York State Public Service Commission accepts the Staff’s proposed changes to Standardized Interconnection Requirements (SIR) submitted in Cases 15-E-0751 and 15-E-0557, which included stakeholder input obtained through the Interconnection Policy Working Group (IPWG) and the Interconnection Working Group (ITWG), among other forums.

Order Approving Minor Tranche Adjustments
February 26, 2018 | Case 15-E-0751 | New York State Electric & Gas Corporation (NYSEG) filed a Petition for seeking approval to adjust the Tranche 0/1 MW limit up to 62 MWs and to adjust the Tranche 3 MW limited downward to 77 MW in its service territory. In this Order, the New York State Public Service Commission finds that NYSEG’s proposed resolution appropriately maintains a net annual revenue impact on non-participating customers of under two percent, while also avoiding imposing a negative impact on developers based on NYSEG’s error. The Commission therefore grants NYSEG’s Petition and adjusts the Tranche allocations as requested.

Order on Phase One Value of Distributed Energy Resources Project Size Cap and Related Matters
February 22, 2018 | Case 15-E-0751 | In this Order, to unlock the economy of scale and efficiency benefits that will result in the development of additional clean generation without impacting nonparticipating ratepayers, the New York State Public Service Commission expands eligibility for participation in Value Stack tariffs to projects up to 5 MW, subject to existing Value of DER (VDER) tariff rules on technology eligibility, and with the exception of CHP.

Order Regarding Compensation of Community Distributed Generation Projects
January 18, 2018 | Case 15-E-0751 | In this Order, the New York State Public Service Commission establishes a Tranche 4 for utilities where Tranche 3 is full or may be filled soon, including Central Hudson, Orange & Rockland (O&R), and New York State Electric & Gas Corporation (NYSEG). Tranche 4 is established with an administratively set Market Transition Credit (MTC), similar to Tranches 1 to 3, at a level below Tranche 3, and with a fixed capacity.

Order Regarding Compensation Term for Certain Projects
September 18, 2017 | Case 15-E-0751 | On June 12, 2017, SUN8 PDC LLC filed a Petition requesting to extend the Phase One Net Energy Metering (NEM) term to 30 Years for Multiple Community Distributed Generation Projects. This Order grants the Petition in part, providing an extension of the Phase One NEM compensation term to 25 years for eight of the 14 projects described in the Petition.

Order Approving Minor Tranche Adjustments
September 18, 2017 | Case 15-E-0751 | On June 8, 2017, New York State Electric & Gas Corporation (NYSEG) filed a Petition seeking to adjust the Tranche 0/1 MW limit up to 62 MWs, and to adjust the Tranche 3 MW limit downward to 77 MW in its service territory. In this Order, the New York State Public Service Commission finds that NYSEG’s proposed resolution appropriately maintains a net annual revenue impact on non-participating customers of under two percent, while also avoiding imposing a negative impact on developers based on NYSEG’s error. The Commission therefore grants NYSEG’s Petition and adjusts the Tranche allocations as requested.

Order on Phase One Value of Distributed Energy Resources Implementation Proposals, Cost Mitigation Issues, and Related Matters
September 14, 2017 | Case 15-E-0751 | In this Order, the New York State Public Service Commission makes the necessary decisions to allow full implementation of Value of DER (VDER) tariffs, including the Value Stack compensation methodology. The Commission approves the utilities’ Implementation Proposals, with certain modifications based on stakeholder comments and Staff and Commission analysis.

Order on Net Energy Metering Transition, Phase One of Value of Distributed Energy Resources, and Related Matters
March 9, 2017 | Case 15-E-0751 | In this order, the New York State Public Service Commission enacts various regulations to support Net Energy Metering (NEM) and Value of DER (VDER).

Order Establishing the Benefit Cost Analysis Framework
January 21, 2016 | Case 14-M-0101 | This order establishes the Benefit Cost Analysis (BCA) Framework that was developed from the BCA Whitepaper filed July 1, 2015. The BCA analysis will be applied to four categories of utility expenditures; investments in Distributed System Platform (DSP) capabilities; procurement of Distributed Energy Resources (DER) through competitive selection; procurement of DER through tariffs; and, energy efficiency programs.

Independent and Stakeholder Reports

What is it Worth? The State of the Art in Valuing Distributed Energy Resources
January 2017 | Prepared by the Rhodium Group for the U.S. Department of Energy, the goal of this report is to give state and federal regulators, and electric power stakeholders, a deeper understanding of what DERs are, what services they can provide, the options available for quantifying the net value of these services, and regulatory frameworks that could accommodate or potentially hasten the transition to a cleaner and more resilient power system.

Getting More Granular: How Value of Location and Time May Change Compensation for Distributed Energy Resources
January 2018 | This report is the fourth in the Solar Energy Industries Association series on grid modernization and focuses on the ways in which the location of a DER can provide various grid benefits and may lead to changes in DER compensation.

Valuing Pollution Reductions: How to Monetize Greenhouse Gas and Local Air Pollutant Reductions from Distributed Energy Resources
March 2018 | This report presents a straightforward five-step methodology that can be used to calculate the value of pollution reductions in a technology neutral manner while relying on existing, readily accessible tools.

Distributed Energy Resources: Technical Considerations for the Bulk Power System
February 2018 | This report describes the efforts of the Federal Energy Regulatory Comission staff, that performed a series of technical assessments using industry power system models and commercially available power system simulation software to identify the potential reliability issues and likely benefits to the bulk power system resulting from an increased penetration of DERs

RESOURCES

In the Matter of the Value of Distributed Energy Resources
Case 15-E-0751 | This New York State DPS website page contains links to documents relating to the Value of Distributed Energy Resources petition, including plans and proposals, motions, reports, comments, press releases, petitions, and correspondence.

Proceeding on Motion of the Commission as to the Policies, Requirements and Conditions for Implementing a Community Net Metering Program
Case 15-E-0082 | This New York State DPS website page provides links to documents relating to the New Case Proceeding on the Motion of the Commission as to the Policies Requirements and Conditions for Implementing a Community Net Metering Program, including rulings, motions, comments, correspondence, press releases, orders, and reports.

NYSERDA: VDER Resources
Comprehensive online information / resources on the value of DER (VDER), including a description of VDER and its objectives; a solar value stack calculator; resources for contractors; information on how to become a participating contractor; tranches for community distributed generation projects; policy updates, and more.

REV Connect: Value of DER, Pricing Distributed Resources
Comprehensive information and resources on the Value of DER from REV Connect, which serves as a central channel for a company to submit ideas to further the opportunities created by New York State’s REV initiatives.

Con Edison
Last update, September 6, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by Con Edison.

NY State Electric & Gas
Last update August 31, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by NY State Electric & Gas.

Orange & Rockland
Last update August 29, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by Orange & Rockland.

Central Hudson Gas & Electric
Last update September 6, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by Central Hudson Gas & Electric.

National Grid
Last update August 24, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by National Grid.

Rochester Gas & Electric
Last update August 31, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by Rochester Gas & Electric.

PSEG-LI
Last updated May 1, 2018 | A compilation of all the documents relating to Value of Distributed Energy Resources updates by PSEG-LI.

UPCOMING EVENTS

OTHER DEVELOPMENTS