We’ve blogged several times over the last two years on New York’s landmark Reforming the Energy Vision (REV) proceeding, which seeks to fundamentally reorient the way electric utilities are regulated in New York State. We have been strong supporters of this effort and, along with our state and regional partners, Alliance for Clean Energy New York and the Northeast Clean Energy Council, have filed comments at nearly every opportunity. Back in 2014, we blogged that The Devil is in the Details and later reviewed some of those details when the Department of Public Service issued its Track 2 White Paper. We also weighed in on benefit-cost analysis and, most recently, utility-solar collaboration on the future of net metering and compensation of distributed energy resources (DER). Truly, there is virtually no aspect of the regulatory framework that is not up for consideration in REV.
The details of what utility regulation will look like in New York just got clearer, when the Public Service Commission (PSC) issued its Track 2 Order on May 19. This Order addresses the fundamental issue of the utility revenue model as well as certain aspects of rate design. While there are many details still to be worked out (the Order is mainly about the framework and process), the PSC has formalized some bold ideas for how the utility business model will evolve in order to keep up with changing technology, evolving customer needs, and state energy and environmental goals.