September 28, 2024
Low-Income Groups Seek Clarification on Utility Ownership in Reforming the Energy Vision
A coalition representing low-income households in New York has asked for a clarification and rehearing of last month’s Reforming the Energy Vision order to allow greater participation in the program by less affluent residents.

By William Opalka

A coalition of organizations representing low- and moderate-income households in New York has asked for a clarification and rehearing of last month’s Reforming the Energy Vision order to allow greater participation in the program by less affluent residents (14-M-0101).

The New York Public Service Commission set up a framework for the REV process that limits utility ownership of distributed energy resources with a limited number of exceptions, one of the cornerstones of the state’s path-breaking initiatives in the smart grid, distributed energy resources (DER) and energy storage. (See New York PSC Bars Utility Ownership of Distributed Energy Resources).

“While seeking to pay attention to low- and moderate-income residents, the commission continues to view low- and moderate-income households as merely consumers of energy while providing the opportunity for more affluent residents to be more active participants and owners,” according to a Tuesday filing by the Energy Democracy Working Group, a coalition of six organizations from throughout the state.

The REV generally excludes utility ownership of DER assets, but it allows exceptions for the development of DER intended to benefit the less affluent. The REV order noted that consumer advocates expressed concerns during the proceeding that those residents, including renters, would be excluded from REV benefits.

Energy Democracy agreed with the PSC’s assessment that utility investment may be needed but said the order is unclear regarding what types of investments that may mean, and how partnerships with community groups would be organized.

“We seek clarification as to whether ‘investment’ … means ‘ownership’ or whether it means providing access to financing or other support to allow low-income and moderate-income people to own distributed energy resources themselves,” it wrote.

The group also says that the assumption that DER markets will not develop without utility ownership is “premature” and that the “REV proceeding is meant to change the status quo and reduce barriers” for DER.

While the order does not define low or moderate income, Energy Democracy said it assumes standard measures that define “area median income” are used. “We hope the commission does not mean to write off the approximately 50% of New Yorkers who are low- or moderate-income as unreachable by the new REV markets,” the petition states.

“Low- and moderate-income New Yorkers represent a substantial portion of the state’s population and a large portion of the electricity market. This raises the possibility that … the exception … will represent a significant portion of the market,” it adds.

Distributed Energy Resources (DER)Energy MarketEnergy StorageNew York

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