New York’s REV initiative, unveiled in 2014, seeks to transform the state’s utility regulatory structure by creating distributed service platform (DSP) providers for integrating greater levels of DERs and empowering customers with better energy management options. The DSP is the functional center of the REV framework and is defined as an intelligent network that will provide safe, reliable, and efficient electric services by integrating diverse resources to meet customers’ and society’s evolving needs. The REV Track 1 proceeding focuses on the development of DER markets and DSP providers, while the parallel Track 2 focuses on reforming utility ratemaking practices and revenue streams to accommodate the DSP provider model. Utilities will act as distributed system platforms to develop energy systems and services enabling consumers to better manage their electricity use.

In an innovative approach, NY PSC issued an order in the Value of Distributed Energy Resources (VDER) proceeding (Docket No. 15-E-0751) in March, establishing compensation for energy storage combined with eligible DG systems. NY PSC has also issued an order in its distributed system implementation platforms proceeding (Docket No. 16-M-0411) directing the state’s investor-owned utilities to deploy at least two energy-storage projects by December 31, 2018.