Advanced Energy Perspectives

In this post, we look at 10 key issues before state public utility commissions (PUCs) this year, from comprehensive energy storage to rate design and utility mergers. For access to PUC dockets referenced in this column in all 50 states, along with state legislative activity, sign up for a free trial of AEE’s PowerSuite. The trial includes a free subscription to DocketDigest, our bi-weekly newsletter focused on the latest PUC advanced energy dockets.

California is currently immersed in a variety of proceedings focused on topics ranging from distribution planning to rate design to energy storage. Arguably the two most consequential proceedings are on Distribution Resource Plan (DRP) - focused on how utilities can value distributed energy resources (DER) - and Integrated Demand-Side Resource (IDER) - focused on how best to source DER needed by utilities and to consider the issue of localized incentives.

Image courtesy of Clean Energy Resource Teams, from a workshop and tour on community solar gardens at Lake Region Electric Cooperative in Minnesota.

More and more, across the U.S., consumers want access to solar energy. However, according to a new GTM market report, only an estimated 13.5% of U.S. households have rooftops suitable for solar. In what many are hailing as the solution - community solar - the remaining 86.5% of households could benefit from solar power as if the panels were installed on their homes. Community solar makes solar an option for everyone: renters, apartment dwellers, owners with shaded rooftops, consumers with sub-optimal credit, people living in historic districts, and those hampered by unfavorable building codes or zoning ordinances.

In this day and age where information is always at our fingertips and we are constantly connected, the lack of customer engagement in the electric utility industry - on which all our smart electronic devices depend - is mind-blowing. In 2014 alone, the electric utility industry in the United States had revenue of over $389 billion from end use customers. In spite of that level of outlay, it is estimated that the average residential customer only spends about nine minutes a year engaging with an electric utility. Smart meters can change all that. These sophisticated meters have the potential to transform how customers and utilities manage electricity delivery and use. Whether they will, however, depends on how they get put to use - and both utilities and their regulators have a role in that.

Disruptive new technologies, aging infrastructure, strengthened environmental regulation, and increased energy efficiency adoption are all contributing to a rapidly changing energy landscape. In order for utilities to plan for meeting future energy demand in the most cost-effective way, many states require utilities to file integrated resource plans (IRPs) with their state public utility commissions (PUCs). IRPs first started in the 1980s in response to the desire to better integrate energy efficiency into utility planning, the unexpectedly high costs of developing nuclear plants, and the oil embargoes of the 1970s. Today, new technologies, changing market conditions, and new environmental regulations are making IRPs change with the times.

Back in January, we published a list of the top 10 utility commission issues to watch in 2015. With 2015 half gone, we check in on the top issues facing utility commissions. Note: some links in this post reference documents in DocketDash, BillBoard or PowerPortal, applications in AEE's software platform, PowerSuite. Click here and sign up for a free 14-day trial of PowerSuite.

1. New York’s ‘Reforming the Energy Vision’

New York, in its comprehensive Reforming the Energy Vision Proceeding (REV), is determined to redefine the role of the utility and overhaul the utility business model, and that process is marching forward. In its Track One Order issued in February, the NY PSC approved a Distributed System Platform (DSP) model, wherein the utilities will be responsible for managing markets for distributed energy resources (DER). The order also significantly limits utility ownership of distributed solar, wind, and battery storage and increases the standard interconnection cap from 2 MW to 5 MW. On July 1, the PSC is expected to release the Track Two Straw Proposal, which will focus on such crucial matters as financial drivers for utilities - in other words, how they make money.