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User:Holdenevelync/sandbox/Reforming the Energy Vision

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Reforming the Energy Vision (commonly abbreviated as REV) is a set of multi-year regulatory proceedings and policy initiatives launched in New York state in 2014. The Andrew Cuomo administration and the New York Public Service Commission (PSC) initiated the REV process in order to change how the state's utilities operate and incentivize improvements to the state's aging electric grid, with a focus on integration of new technologies for energy generation and management. These technologies, often referred to as distributed energy resources (DERs), include solar photovoltaics, wind power, and energy storage [1]. The end goals of REV include reducing carbon emissions from the electric sector and opening up new markets in New York state for emerging energy technologies [2]. The affected utilities in the state of New York include Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, National Grid, New York State Electric & Gas Corporation, and Orange and Rockland Utilities.

In addition to the core project of utility restructuring, the REV initiative also encompasses a number of other energy programs, some which were launched before REV itself. These include K-Solar, NY Prize, NY-Sun, BuildSmart NY and the state's Green Bank.

Utility Ratemaking and Revenue Models

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A central component of REV is transforming the way New York’s electric utilities buy and sell electricity. In 2014 the New York Public Service commission established a goal of converting the state’s electric utilities into Distributed Platform Providers (DSPs), a significant change to the traditional utility business model [3]. The REV utility restructuring is the first comprehensive attempt at redesigning utility regulation in a US state since the restructuring of the late 1990s [4].

The new business model is designed to go beyond traditional cost of service utility ratemaking. An order issued by the public service commission in May 2016 established the framework for developing new ratemaking and revenue models for utilities. According to the order, the REV process will establish the formal procedure for how New York utilities can revenue through two new categories of activity: 1) Serving as a market-based platform (such as averting capital investment through the use of advanced energy technology and supporting DSP users), and 2) Achieving performance-based outcomes, such as energy efficiency and customer engagement [5].

Process

New York's utilities are required to cooperate with the public service commission and other bodies to develop the new earnings mechanisms.

References

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  1. ^ "Governor Cuomo Announces Fundamental Shift in Utility Regulation". Governor Andrew M. Cuomo. 2014-09-28. Retrieved 2017-05-05.
  2. ^ "REV in 2016: The year that could transform utility business models in New York". Utility Dive. Retrieved 2017-05-05.
  3. ^ "Reforming the Energy Vision: Department of Public Service Staff Report and Proposal" (PDF). 4/24/14. Retrieved May 6 2017. {{cite web}}: Check date values in: |access-date= and |date= (help)
  4. ^ "The Interchange: Energy Conversations From GTM New York's Historic Utility Reform, Three Years On | GTM Squared". Retrieved 2017-05-05.
  5. ^ Research, Enerknol. "New York Adopts New Revenue Model For Electric Utilities Under REV". Breaking Energy. Retrieved 2017-05-05.
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