Stev even en My Mysh sholo lowsky wsky Sep epte temb mber - - PowerPoint PPT Presentation

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New York’s Reforming the Energy Vision (REV) Proceedin eeding Stev even en My Mysh sholo lowsky wsky Sep epte temb mber er 30, 2015

Drivers Behind REV

• Intensive Electric Grid System Upgrades 2000-2010
• Hurricane Irene – 2011
• Hurricane Sandy – 2012

– Ensuing Consequences

• Big Picture Reviewed by State
• Storm Hardening Initiatives Followed

– Storm Walls ; Submersible Pumps, etc.

• REV Initiative Instituted

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REV Core Objectives

• Enhance Customer Knowledge / Options*

– Active Customer – Passive Customer

• Market Animation
• System Efficiency

– Address Peak Reduction Utilizing a Targeted Methodology

• Fuel & Resource Diversity
• System Reliability and Resiliency
• Reduction of Carbon Emissions

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REV Proceeding Principles

4 Track ck One: e: Impl mplem ementa ntation Distribution-level market design, technical platform, integrated system planning &

• peration, new utility business models, ownership of distributed resources
• Utilities will be the Distributed System Platform
• Utility ownership of DER limited to backstop
• 5-Year Implementation Plan due June 30, 2016; annually thereafter
• Initial Demonstration Projects filed July 1
• Energy Efficiency Transition Implementation Plan (ETIP) filed July 15

Track ck Two: Regulat ulatory ry & Ratema emaking Rate design, performance-based ratemaking, extended rate case periods

• Staff straw proposal issued July 28

Track ck Three: ree: Renewa ewabl bles es Large-scale renewables, renewable portfolio standard

• NYSERDA options paper issued June 1
• Utility ownership is being contemplated among other models

TRACK 1

Distributed Energy Resources (DER)

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• DER primarily includes distributed generation and storage
• Demand-side management can be managed by utilities,

ESCOs, and aggregators

Description

• Regulated utility ownership of DER is limited to:

–

“Backstop” situations where the utility has identified a need that the market is unable to meet

–

Storage directly integrated into the distribution system on utility property

–

Low- and Moderate-Income offerings

–

Demonstration projects

• Affiliates can participate with some restrictions – e.g. independent evaluator

for utility solicitations and market operations, code of conduct rules

• Utility retains role in managing energy efficiency and demand response

programs, though DR aggregators independently participate in markets

Status – Track 1 Order

TRACK 1

Distributed System Platform (DSP)

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• System and market operator
• Dispatch distributed resources
• Interface with wholesale markets

Description

• Utilities will be the DSP

–

Utilities will become separate DSPs with certain standardized elements across the State

–

Common look-and-feel, technical protocols, and market rules

• By expanding the role of the utility to include DSP functions, utilities will

have the regulatory obligation to optimize and support DER

• Initial 5-year Distributed System Implementation Plan (DSIP) due June 30,

2016; annually thereafter

Status – Track 1 Order

• Changing relationship with customers for utilities
• Consider best ways to engage customers in product and service
• fferings*

– Customer billing is being evaluated to increase the value of information provided to

customers

– Digital marketplace will facilitate robust DER markets – Advanced metering will enable customer engagement and DER integration ??? – New rate designs are contemplated to encourage behavioral change

• Utility becomes enabler of customer options and provider of reliable

service

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TRACK 1

Customer Relationship

Brooklyn-Queens Demand Management

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750 760 770 780 790 800 810 820 830 840 850 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MW Hour

Sample network 2016 peak day load curve

1 Hour 12 Hour 8 Hour 1 Hour 6 Hour 4 Hour 2 Hour 2 Hour 4 Hour 1 Hour 1 Hour 1 Hour

• $1.2 billion substation deferral using portfolio of alternative

investments in Brownsville load area (3 Networks)

• Earn rate-of-return plus incentive based on implementation

Description Sampl ple e Network Peak k Day Load Curv rve

• Production is not aligned with system

needs

• PV alone goes offline during grid outages

ConEd Solar Map January 2015

Demonstration Project: Virtual Power Plant

Demonstration Project: Virtual Power Plant

PV on a Sunny Day Firm PV with Storage Shift PV with Storage

Premium emium Pricing icing for Resilie liency cy Virtua rtual l Power wer Plan ant (VPP PP) Ma Market t Part rticip icipation tion

• Test customers’

willingness to pay for resiliency capabilities

• Develop insights to
• ther potential

customer offerings

• Test reliability of

VPP to perform under a range of conditions

• Test coordination

and control systems for DSP preparation

• Expand project size to

bid into both capacity and energy markets at distribution and transmission levels

• Participate in DSP

transactions 1 2 3

Demonstration Project: Virtual Power Plant

REV’s Impact on EM&V

• Conduct more technology specific evaluation research
• Conduct less program based impact evaluations
• Added emphasis on M&V

– Project Based reviews – Technology Based reviews – TRM Based insights based upon in-situ metering – Better define load curves

• AMI Infusion for information & education will help ?????????
• EE/DR Program offerings continue – short term (minimum 5 years)

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Summary

• Manage the Grid Efficiently
• Engage the Customer and Offer them Choices to Manage their Costs & Energy

Consumption (Timing)

– Rate Design

• Work Collaboratively with Manufacturers / Market Partners to serve the needs
• f the Marketplace, and align with System Needs
• At the end of the day…………..

– It about the reductions we see at the meter that counts

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REV: The Future Electricity Business Structure

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Ques estio ions ns

Steven Mysholowsky Section Manager – EM&V Con Edison 212.460.2120 mysholowskys@coned.com

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