Order Adopting Dynamic Load Management Filings With Modifications

Monday, June 29, 2015

(June 18) The New York Public Service Commission has issued an order adopting dynamic load managementf filings with modifications.

The introduction is excerpted below:

In the Reforming the Energy Vision (REV) proceeding,1 a process has been adopted for transitioning the electric system to new paradigm focused on harnessing new technology and markets in a customer-centered manner while continuing to ensure safe and adequate service at just and reasonable rates. As part of this process, the proceeding on Dynamic Load Management (DLM) was initiated on December 15, 2014 in the DLM Order.2 There, it was explained that DLM strategies, including Demand Response (DR), can provide a number of system and public policy benefits consistent with the REV objectives, including reliability, economic, and environmental benefits. These benefits also include deferral or avoidance of distribution or bulk power infrastructure spending, improvement of overall system efficiency, and furtherance of system reliability and resiliency.

In the DLM Order, the Commission recognized that Consolidated Edison of New York, Inc. (Con Edison) had implemented and developed distribution-level DR programs in response to Commission directives and was deriving substantial benefits from those programs. Based on this existing experience, it was determined that distribution-level DR programs are proven “no regrets” cost effective programs, for which immediate implementation was appropriate. For these reasons all electric distribution utilities without dynamic load management (DLM programs) were directed to develop DLM programs and file draft tariffs for such programs for implementation for the summer of 2015.3 Draft tariff filings were received from Central Hudson Gas & Electric Corporation (Central Hudson), New York State Electric & Gas Corporation
(NYSEG), Niagara Mohawk Power Corporation d/b/a National Grid (Niagara Mohawk), Rochester Gas and Electric Corporation (RG&E), and Orange and Rockland Utilities, Inc. (O&R) (jointly, the utilities), on March 23, 2015.

In this order, those draft tariffs are approved with modifications and each utility is directed to submit final
tariffs as a compliance filing with an effective date of July 1, 2015. This will allow the DLM programs to begin operation this summer. Since significant expansion of several of the programs for the summer 2016 period is expected, each utility shall make a filing before January 7, 2016 proposing those changes and such other changes as are deemed appropriate. Each utility shall also file an annual report on DLM programs.

The DLM programs adopted today will be instrumental in the delivery of longer term benefits to New Yorkers, including avoiding or delaying transmission and distribution system investment, promoting energy efficiency, and improving the reliability and resiliency of electricity delivery systems. These programs, however, are only a first step to addressing the development of DLM. It is expected that Department of Public Service Staff (Staff) will continue to facilitate stakeholder discussions on developing innovative programs to address market needs, leveraging the resources that these programs will produce, and complementing other third-party product and service offerings. Demonstration projects developed through REV will also reveal opportunities for integration of dynamic load management into utility systems. These developments will continue in parallel as the REV proceeding moves forward. DLM programs will ultimately be integrated into utility system planning and operations and be accomplished by market mechanisms.