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ScottMadden partnered with the Smart Electric Power Alliance (SEPA) to develop a report summarizing the different approaches California and New York are taking regarding the integration of distributed energy resources (DERs) in each state. The report, “Distributed Energy Resources Integration: Policy, Technical, and Regulatory Perspectives from New York and California,” is a virtual summary to thousands of pages of regulatory filings in both states in the form of one concise synopsis.

The centerpiece of change in New York has been the state’s Reforming the Energy Vision (REV) proceedings, which are aimed at creating a path to utility business model transformation and DER “market animation.” While actual DER penetration in New York has been minimal to date as compared to California, REV reflects the Public Service Commission’s view that “if we build it, they will come,” with a focus on creating the infrastructure and incentives to build DER deployment.

In California, the approach to change is driven by aggressive renewable portfolio standards and solar rebates, which have led to high levels of rooftop solar adoption and penetration in some areas. This has triggered operational and planning challenges for utilities and required a more piece-by-piece problem solving approach. Importantly, California is taking a step-by-step approach through a series of legislative and regulatory actions that address discrete issues presented by DERs. The approach here is to focus on piloting key changes before finalizing rate reforms or other changes to utility business models.

Read the following report in order to gain a better understanding of the areas of overlap and divergence in the goals and execution of energy system reform between the two states.

Read more in the full report here.

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