Advanced Energy Perspectives

Does your utility sell you power from its own power plants, or procure power on the open market on your behalf? Do you have the right to shop around for your electric power among competitive providers? Do other states do this the same way? Do you even know?

Now you can know all this - and more.

Note: some links in this post reference documents in DocketDash, BillBoard or PowerPortal, applications in AEE's energy policy software platform, PowerSuite. Click here and sign up for a free 14-day trial of PowerSuite.

In 1932, only three utility holding companies controlled almost half of the investor-owned utilities around the country. In response to the Great Depression and the ensuing antitrust government crackdown, the Public Utility Holding Company Act of 1935 was passed by Congress in order to limit the size of utility holding companies and to keep the regulated entities separate from their unregulated affiliates. That law was repealed with the Energy Policy Act of 2005, which cracked open the door for consolidation of the utility industry. Now, that door has swung wide open.

To kick off 2015, we look at 10 key issues before state public utility commissions this year, from comprehensive grid modernization to rate design and utility mergers. Note: some links in this post reference documents in DocketDash, BillBoard or PowerPortal, applications in AEE's energy policy software platform, PowerSuite. Click here and sign up for a free 14-day trial of PowerSuite.

1. New York PSC to Issue First Major Orders in Trailblazing Reform Effort

The New York Public Service Commission’s multi-stage Reforming the Energy Vision Proceeding continues into 2015, with the Track One order expected early in 2015. That order is expected to address the major system design aspects of REV, including the role of distribution utilities in enabling market-based deployment of distributed energy resources (DER). A straw proposal addressing Track Two of REV, expected in the second quarter, will examine changes in the regulatory structure, tariffs, and incentives needed to better align utility interests with achieving the state’s policy objectives (of more efficient energy use, deeper penetration of renewables and widespread DER adoption). After stakeholder input on the straw proposal, a Track Two order will likely be issued in the second half of 2015. Following the issuance of the Track Two order, REV will move into its next stage, which will include an extensive implementation period of utility-specific filings and additional stakeholder input on a number of issues.

In 2014, state public utility commissions grappled with issues ranging from grid modernization to energy efficiency rollbacks, with some of the proceedings continuing into next year. In this year-end post, we look back at the top 10 issues on commission dockets this year - and get ready for a busy 2015. Note: some links in this post reference documents in DocketDash, BillBoard or PowerPortal, applications in AEE's new energy policy software platform, PowerSuite. Click here and sign up for a free 14-day trial of PowerSuite.

1. New York Boldly Undertakes Comprehensive Utility Reform

The New York Public Service Commission opened a groundbreaking proceeding, Reforming the Energy Vision (REV) in April 2014, which aims to address key barriers to the deployment of distributed energy resources through a significant redesign of utility planning processes, electricity market structures, and rate design. The rest of the country is watching closely, as the outcome of REV could help define the future of utility business models in many states.

AEE and its state and regional partners, Alliance for Clean Energy New York and the New England Clean Energy Council, have filed formal comments in the REV proceeding and, via the AEE Institute, published a report outlining a comprehensive approach to benefit-cost analysis for distributed energy resources needed to make REV successful.

We are now a little over four months into the landmark regulatory proceeding in New York State called “Reforming the Energy Vision,” or REV. With REV, the New York Public Service Commission (PSC) is seeking to fundamentally transform the way the state’s electric distribution utilities are regulated and how they do business – changing the way electricity is generated, bought and sold in New York. The REV proceeding is arguably the most comprehensive yet to tackle what is variously known as “Utility of the Future,” “Utility 2.0,” or as we at AEE call it, the “21st Century Electricity System.” (Users of PowerSuite can track and collaborate on this vital regulatory proceeding here.) Whatever you call it, the idea is to create a high-performing electricity system that runs on advanced energy. With the release of a new straw proposal on August 22, the PSC is moving the vision toward reality.