With increasing solar penetration, states and utilities are considering methods for proper valuation of distributed generation, with regard to potential cost-shift to non-solar customers, aggregation, and ownership models.
On April 18, 2016, a coalition of New York State electric utilities and solar companies jointly proposed a distributed generation compensation model that addresses cost-sharing issues in transitioning from net energy metering (NEM). As utilities and state regulators continue to debate over the valuation of solar power, the New York proposal could set a national precedent for utility-industry collaboration to support solar growth while addressing cost-sharing issues.
On February 23, 2016, the New York State Public Service Commission (NY PSC) announced a plan to preserve financially-struggling nuclear power plants, which, if closed, would negatively impact the state’s ability to meet its clean energy and emissions reduction objectives. The plan could set the stage for additional policy changes, since sustained operation of existing nuclear plants requires long-term financial viability facilitated by an effective market design that recognizes the range of nuclear benefits.
Key Takeaways: Reforms to the Federal Energy Regulatory Commission’s (FERC) interconnection requirements will eliminate the current reactive power exemptions for wind generators To implement the proposed amendments, each public utility transmission provider would be required to submit a compliance filing within 90 days after the final rule takes effect With growing wind energy penetration, grid…...
