The New York State Department of Public Service (Department) announced the first seven demonstration projects. These projects are part of Governor Andrew M. Cuomo’s Reforming the Energy Vision (REV) strategy for embracing the historic potential of clean energy to empower customers and build a stronger economy and a healthier environment.

 

The REV demonstration projects moving forward today provide insight on how businesses and innovators can work with utilities to unlock private investment in clean energy and deliver new products and services to customers. These projects, a direct response to the State’s REV regulatory initiative, show how new energy business models are advancing New York’s leadership in building a cleaner, more resilient and affordable energy system for all New Yorkers.

 

“Some like to pit the environment against the economy as if it’s one or the other,” said Richard Kauffman, Chairman of Energy and Finance for the State of New York. “These demonstration projects provide another illustration of how New York is proving that premise wrong through innovative new business models that reduce carbon emissions by animating private investment in clean energy. New York is directly taking on the challenge of finding solutions to fix a costly and inefficient energy system in order to benefit consumers and protect the environment.”

 

“These demonstration projects represent, collectively, important first steps in how utilities will develop new business models to improve the customer experience in New York,” said Department CEO Audrey Zibelman. “They further Governor Cuomo’s REV strategy by supporting clean-energy innovation and investment, and they will provide customers, including low-income customers, with opportunities to gain greater control over their energy use and reduce power bills. As a result of these projects, utilities will be positioned to operate more efficiently through better integration of distributed resources, working with third parties in new kinds of business relationships.”

 

While the traditional utility business model is based on spending electric consumer dollars and earning a regulated rate of return, these projects include private investment from third-party partners and are intended to demonstrate how new revenue streams can be created from the market, rather than from the traditional rate base.  These innovative business arrangements and new, market-based revenue streams can provide a return on investment that motivates utilities and third parties to work together.

 

The first REV demonstration projects engage a wide variety of customers from across the state, from homeowners, to renters, to commercial business, to low-to-moderate income New Yorkers.  These projects also involve a diverse array of third party partners, including growing startup companies based in New York.

 

The projects test how new business models and partnerships with third parties can harness the utility platform, expertise, and brand to reduce clean-energy costs and barriers related to marketing, financing, and operations and maintenance. They also demonstrate how the utility platform can open access to new value streams based on the benefits local energy resources provide to the system, which improves project economics for clean-energy developers and customers.

 

The projects include:

These projects provide benefits for all involved, where participating customers get improved access to clean energy products and services at a lower cost, third parties expand their market, utilities tap into a new type of revenue stream, and all ratepayers benefit from reduced emissions and a stronger energy system, funded by the market and avoided costs, rather than the rate base. By identifying ways to align the incentives for each of these parties, the projects demonstrate how clean energy can transition from being a utility compliance activity, to a true business opportunity with momentum to scale on its own.

 

In the coming weeks, the Department will release documents detailing how these projects met the REV demonstration project criteria, and will begin to work with the utilities and their partners to develop implementation plans.  The utilities will then file quarterly reports to evaluate success and provide actionable results to inform the REV regulatory proceeding.

 

These projects are the beginning of a process to explore new ways for the utilities to engage with third parties and customers. There have been an additional five projects that have been filed with the Department which will continue to be refined. Meanwhile, the utilities will be proposing additional demonstration projects on an ongoing basis. To promote a transactive environment and enable greater engagement between utilities, third parties, and communities, New York State is also hosting a REV4NY Exchange from September 24-25th in New York City. Here’s how to register: https://goo.gl/O9U7Va

 

Specific details on the REV demonstration projects may be obtained on the Department’s website by going to the Documents section at www.dps.ny.gov and entering Case Number 14-M-0101 in the input box labeled "Search for Case/Matter Number."  Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

 

Reforming the Energy Vision

www.ny.gov/REV4NY