Energy Committee Update
June 2, 2014
Staff Contact: Darren Suarez
- Committee Meeting
- End of Session Legislation
- REV Proceeding
- Clean Energy Fund
- 2014 NYISO Energy Conference
- 2014 Renewable Energy Conference
All members of the Business Council are welcome to join a quick meeting of the Energy Committee on June 6th at 9am in the 4th floor 12 Corporate Woods Blvd. conference room. The meeting will be focused primarily upon end of session legislation. A section of the meeting will be devoted to the development of a schedule of future committee meetings to discuss the REV proceeding, Green Bank, and the Clean Energy Fund.
An opportunity to join the meeting through conference call will be provided.
New York’s legislative session is scheduled to end June 19th. This end of session will have more uncertainty than most. The legislative agenda will likely be heavily influenced by significant political insecurity surrounding the November legislative elections. In the energy arena, the end of the legislative session will likely focus upon net metering, hedging of energy costs, consumer advocates, and other unseen items. The Business Council as always will endeavor to hear from all sides on issues and provide opinions where those opinions are likely to inform the legislative discussion.
A list of legislation of interest will be shared with members prior to the June 6th meeting. Any member wishing to have specific legislation noticed, discussed, opposed or supported, please share a list of that legislation prior to June 5th for inclusion in the June 6th meeting agenda.
REV Proceeding (CASE 14-M-0101)
As discussed in an earlier energy committee update the Public Service Commission has taken significant steps in the pathway to fundamentally transform the way electricity is distributed and used in New York State. During the Reforming Energy Vision (REV) proceeding the PSC will examine how existing practices should be modified to enable utilities to actively manage and coordinate distributed energy resources and provide a market enabling customers to optimize their energy priorities, provide system benefits, and be compensated for providing such system benefits. And consumers won’t have to sacrifice their comfort as existing practices change accompanied by reductions in their utility bills.
The proceeding will also examine how the State’s regulatory practices could be modified to incentive utility practices that best promote energy efficiency, renewable energy, least cost energy supply, fuel diversity, system adequacy and reliability, demand elasticity, and customer empowerment.
According to the REV Proceeding Order the two tracks of the REV Proceeding will proceed in parallel, with Track One focused on the Distributed System Platform Provider (DSPP) , and Track Two on regulatory and ratemaking reforms. The PSC has requested the first status report on the DSPP issues outlined at the PSC’s July 10, 2014, session. For Track 2 an initial staff straw proposal on regulatory changes and ratemaking issues is anticipated in mid-July 2014. The straw proposal would then be subject to collaborative discussions with stakeholders, and interested parties could submit comments on the initial draft. A status report on the regulatory reforms is expected at the NYPSC’s September 4, 2014, session and a generic Commission policy determination” is expected in the first quarter of 2015.
The Business Council has become a party to the proceeding because of the potential direct and lasting impact on millions of residential, commercial and industrial customers in New York. The Business Council urges individual members with a potential concern with the proceeding to become an active party. The Business Council energy committee in the coming months will prepare positions and policy papers on the future of REV.
Clean Energy Fund (CASE 14-M-0094)
On May 8th the Public Service Commission commences a proceeding to consider the development of a Clean Energy Fund (Clean Energy Fund or Fund). The intent of the proceeding is to ensure continuity of the State’s clean energy programs, and to enhance program efficiency and leverage, while also managing their transition from an almost exclusive reliance on ratepayer surcharges to tariff and sustainable market based clean energy activities such as those envisioned in the Commission’s related proceeding for Reforming the Energy Vision (REV Proceeding).
The proceeding acknowledged that the authorization for the current Renewables Portfolio Standard (RPS) and Energy Efficiency Portfolio Standard (EEPS) programs are scheduled to expire at the end of 2015, and both RPS and the EEPS goals are unlikely to be attained. At the end of 2013, RPS was at 49% of the 2015 goal and EEPS electric and gas programs were at 55% and 59%, respectively of their 2015 MWh goals.
The proceeding is moving at an expedited pace, NYSERDA was directed to develop and submit for Commission consideration by August 13, 2014 a proposal for a comprehensive Clean Energy Fund. The proposal will include recommend annual ratepayer collection levels for each year of the 2016-2020 program cycle and beyond. The Commission has indicated that the proposed annual collection levels should ideally be below the authorized 2015 total annual collection levels and should decline in reflection of the full capitalization of the Green Bank and the expected transition of utility EEPS programs to programs consistent with the policy direction from the REV proceeding. The proposal should also identify directional goals and objectives for the fund that align with and support State Energy Plan policies.
The Business Council has become a party to the proceeding because of the potential direct and lasting impact on millions of residential, commercial and industrial customers in New York. The Business Council urges individual members with a potential concern with the proceeding to become an active party. The Business Council energy committee in the coming months will prepare positions and policy papers on the future of the Clean Energy Fund.
Grid Modernization & Competitive Markets: Shaping the Future Electric System, will be the focus of this year’s conference to be held June 23, -24 2014 at the Grand Hyatt New York. To learn more about the conference please review the NYISO website.
Poughkeepsie, New York
You will hear from leading experts in the field of energy. The format of the Conference will allow for concurrent tracks to give you the information that is most important to you. Afternoon sessions will focus on the Impacts of Changing Electric Energy Markets as well as the Practical Market Applications for Renewable Energy.