Advanced Energy Perspectives

How Do You Spell the Future of Net Metering? Maybe like this: LMP+D

Posted by Ryan Katofsky

May 12, 2016 4:00:00 PM


There are lot of hot topics in energy these days, but perhaps none more so than net energy metering (NEM). This simple rate design allows customers with onsite generation (usually rooftop solar, but also other technologies, like fuel cells and small wind systems) to send excess electricity onto the grid and spin their meters backwards. At the end of the month, the customer receives either a bill or a credit, depending on whether there was net excess generation in that month. This makes owners of distributed generation happy - and makes utilities nervous.

Although NEM clearly sets out what distributed generation (DG) customers get paid for their electricity, it does not fully answer the question of what that DG is worth, not only to that customer but to all the other customers who depend on the grid. That’s exactly what New York’s Public Service Commission asked for comment on in the latest round of filings under its “Reforming the Energy Vision” proceeding. In response, AEE Institute, and its state and regional partners engaged in that proceeding, submitted a proposal for setting the balance between deploying distributed energy resources (DER) and maintaining the grid for all. What’s the not-so-secret formula? LMP+D. For what that means, read on.  

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Topics: State Policy Update, 21st Century Electricity System

What can utility CEOs and advanced energy companies agree on? Quite a lot!

Posted by Arvin Ganesan

May 9, 2016 6:30:37 PM

Article originally posted on Bloomberg Gov


The electricity industry is entering a period of fundamental change, driven by strong technology and policy forces, as well as changing consumer demands and expectations. Business-as-usual is no longer sustainable in a future with increasing distributed energy resources and a smarter, cleaner, more interactive electric grid. Why? Traditionally, utilities collected revenues to cover their costs, plus profit, through the electricity sold to consumers. However, as more rooftop solar and energy efficiency come online due to customer preference, the amount of electricity sold by the utility declines, reducing revenues and cutting their profitability.

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Topics: 21st Century Electricity System

Facilitating Utility-Solar Collaboration on Net Metering in New York

Posted by Lisa Frantzis and Danny Waggoner

Apr 25, 2016 3:47:33 PM


As an ambitious proceeding intended to revolutionize the electricity marketplace in New York State, “Reforming the Energy Vision,” has generated a lot of filings, but none more noteworthy than the one submitted last week by New York’s six investor-owned utilities and three solar development companies – all members of AEE. Under the name of the Solar Progress Partnership, utilities including ConEdison and National Grid joined with SolarCity, SunEdison, and SunPower on a filing that put forth a framework for the transition from the current full-retail value of net metering to the REV-envisioned future of a new system of compensation for distributed energy resources (DER). Though it did not sign on to the filing, AEE Institute facilitated the discussions that led to this landmark statement between sometime industry antagonists over the issue that most divides them.

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Topics: State Policy Update, 21st Century Electricity System

New England Energy Leaders Talk Finance, Business Models for a Modern Grid, and Vow to Grapple Further With Rate Design

Posted by Lisa Frantzis and Ryan Katofsky

Dec 17, 2015 12:54:19 PM


Top energy leaders from the six New England states met with utility and advanced energy industry leaders last month to explore common efforts to modernize the electric power grid to maximize the benefits of distributed energy resources like solar, battery storage, energy efficiency, demand response, and microgrids for reliability and customer choice. In a daylong session led by the AEE Institute, Northeast Clean Energy Council, and the Boston Green Ribbon Commission, and held in the Boston offices of law firm Mintz Levin, government officials, utility executives, and business leaders took a regional look at creating a 21st century electricity system in New England – and pledged to continue working together on the question of rate design for distributed energy resources, including the increasingly contentious subject of net metering.

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Topics: 21st Century Electricity System

New York Gets into the Details of a New Business Model for Utilities

Posted by Ryan Katofsky

Nov 5, 2015 5:36:14 PM


A little over a year ago, in an update on New York’s groundbreaking Reforming the Energy Vision (REV) proceeding, we wrote that the “devil is in the details.” Today, we have a lot more details. In late July, the Public Service Commission issued its “Staff White Paper on Ratemaking and Utility Business Models.” As the title suggests, this document makes initial proposals to change how utilities make money (the business models) and how they would charge customers to reward certain behaviors and discourage others (ratemaking). As with other participants in the proceeding, we have spent the past three months poring over this White Paper and thinking through the benefits and risks to advanced energy companies of its various provisions. Although the details are still devilish, the REV vision of a dynamic electric power system built around energy efficiency, onsite solar and wind, energy storage, cogeneration and microgrids, and other distributed resources, rather than a static, one-way system of central power plants, poles, and wires, continues to look bright for advanced energy.

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Topics: State Policy Update, 21st Century Electricity System


Advanced Energy Perspectives is AEE's blog presenting news, analysis, and commentary on creating an advanced energy economy. Join the conversation!

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