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 1
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 2
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 3
REV Proceeding Principles Track ck One: e: Impl mplem ementa ntation Distribution-level market design, technical platform, integrated system planning & operation, 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 4
TRACK 1 Distributed Energy Resources (DER) Description • DER primarily includes distributed generation and storage • Demand-side management can be managed by utilities, ESCOs, and aggregators • Regulated utility ownership of DER is limited to: Status – Track 1 Order – “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 5
TRACK 1 Distributed System Platform (DSP) Description • System and market operator • Dispatch distributed resources • Interface with wholesale markets • Utilities will be the DSP Status – Track 1 Order – 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 6
TRACK 1 Customer Relationship • Changing relationship with customers for utilities • Consider best ways to engage customers in product and service offerings* – 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 7
Brooklyn-Queens Demand Management Description • $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 850 840 Sampl ple e Network Peak k Day Load Curv rve 830 MW Sample network 2016 peak day load curve 820 2 Hour 810 2 Hour 4 Hour 1 Hour 1 Hour 800 8 Hour 1 Hour 790 4 Hour 6 Hour 1 Hour 780 12 Hour 1 Hour 770 760 750 Hour 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8
Demonstration Project: Virtual Power Plant ConEd Solar Map January 2015 • Production is not aligned with system needs • PV alone goes offline during grid outages
Demonstration Project: Virtual Power Plant PV on a Sunny Day Firm PV with Storage Shift PV with Storage
Demonstration Project: Virtual Power Plant Market Ma t 3 Part rticip icipation tion Virtua rtual l Power wer • Expand project size to 2 Plan ant (VPP PP) bid into both capacity and energy markets at Premium emium 1 distribution and Pricing icing • Test reliability of transmission levels for Resilie liency cy VPP to perform • Participate in DSP under a range of transactions conditions • Test customers’ willingness to pay for • Test coordination resiliency capabilities and control systems for DSP preparation • Develop insights to other potential customer offerings
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) 12
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 of the Marketplace, and align with System Needs • At the end of the day………….. – It about the reductions we see at the meter that counts 13
REV: The Future Electricity Business Structure 14
Ques estio ions ns Steven Mysholowsky Section Manager – EM&V Con Edison 212.460.2120 mysholowskys@coned.com 15
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