In April 2014, New York’s Public Service Commission initiated the Reforming the Energy Vision (REV) proceeding to drive clean energy innovation, unlock private investment, and deliver electricity more efficiently and affordably.
In the nearly four years since its initiation, NY REV has established several landmark frameworks:
- the Value of Distributed Energy Resources (DER) to determine locational and temporal value of DER
- the Track 2 Order specifying utility business model modifications
- the Clean Energy Standard mandating 50% of the energy delivered in 2030 will come from renewable sources.
Of late, the focus has shifted from the conceptual to implementation. While the ambitious scale of the REV proceeding is unique to New York, the trends upon which it is building are becoming ubiquitous: greater customer choice, greater penetration of DER, increasingly powerful sensing and communications technology, and stagnant overall load growth. REV addresses these challenges in a comprehensive, no-stone-left-unturned manner.
The REV proceeding is complex with many interlocking pieces impacting all aspects of the utility operating, regulatory, and business models. While other jurisdictions may not opt for the same breadth of regulatory reform as REV, some elements of REV may be adopted a la carte. ScottMadden’s immersion in REV from the beginning offers a perspective of how these pieces fit together and how best to position a utility to adapt to a radically changing regulatory landscape.
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