Concentric Energy Advisors
The Concentric Connection • May, 2016 www.ceadvisors.com
Concentric Energy Advisors
Reforming the Energy Vision (REV): National Implications

NEW YORK’S LANDMARK PROCEEDING TO BRING THE ENERGY INDUSTRY INTO THE 21ST CENTURY ENTERS A NEW PHASE

New York’s REV proceeding was initiated two years ago, yet many significant policy issues remain to be resolved, even as the State’s investor-owned utilities embark on a multi-year implementation effort. REV aims to expand the role of electric distribution utilities by emphasizing their accountability to (i) provide a platform that enables and accelerates the deployment of distributed energy resources; (ii) consider lower-cost alternatives to traditional utility investments without sacrificing network performance; and (iii) promote new customer products and services. New York’s “clean” objectives are woven throughout the REV fabric and are addressed through a separate Clean Energy Standard that was announced by Governor Cuomo on January 21, 2016.

Numerous policy questions remain unresolved and are being addressed in a growing number of related dockets. These issues include, but are not limited to:

• The design of Earnings Impact Mechanisms (“EIMs”) to incentivize utility performance;

• The design of a Benefit-Cost Analysis (“BCA”) framework to guide utility investments;

• Identification and prioritization of distribution investments that could be deferred or displaced by Non-Wires Alternatives;

• The procurement of clean energy resources through community-based programs;

• Ownership models for the renewable assets on which the Clean Energy Standard relies;

• Standardized approaches to protect the privacy and security of customer and system data; and

• Provision of benefits for low- and moderate-income customers.

Many of these issues have been litigated through a paper hearing process and are awaiting Commission orders. Certain other issues have been addressed in technical conferences, with less formal evidence. A new initiative is addressing the controversial subject of the future of Net Energy Metering and the appropriateness of transitioning to an alternative resource compensation model that recognizes its energy, local distribution system value, and environmental attributes (referred to as “Value of D”). Initial responses to a set of questions issued by Staff were filed by parties on April 18, 2016.

While these policy issues are yet to be resolved, New York’s investor-owned electric utilities are preparing Distributed System Implementation Plans (DSIPs) scheduled to be filed on June 30, 2016. These filings will document existing capabilities, and each company’s plans to (i) implement a new integrated distribution system planning process that considers distributed energy resources (“DERs”) as a distribution system resource, (ii) build new distribution and information technologies, information systems, and processes to manage a more complex grid network, and (iii) facilitate customer engagement through RFP and tariff mechanisms. The initial DSIPs will identify utility investments in infrastructure and systems that will promote market development, and will document opportunities for market participants to develop non-wire alternatives (“NWAs”) to alleviate resource needs on the system.

New York’s investor-owned utilities are working together to engage stakeholders to develop a common State-wide approach to technical issues that will facilitate the evolution of a statewide platform for bringing energy consumers and energy service providers together. The utilities will make a joint filing reporting on the progress of these stakeholder engagement efforts (the “Supplemental DSIP”) on November 1, 2016. The utilities are also implementing demonstration projects to test these technologies and new business models that will change the way that utilities work with third-party vendors and customers.

Concentric’s work for the Joint Utilities, on this broad and growing range of regulatory and implementation requirements, encompasses advisory support on technical regulatory issues, coordination of efforts to achieve alignment with external stakeholders, and overall project management for the joint efforts to approach the REV proceeding. Our goal is to ensure that REV provides significant benefits for customers, while ensuring that utilities are appropriately rewarded for continuing to provide exceptional service to customers throughout New York State.



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Concentric Energy Advisors
Jordan Cove/Pacific Connector Pipeline Joint Petition for Rehearing Puts New Evidence of Market Demand Before FERC and Disputes Basis of Commission’s Decision in March to Deny Project Authorizations

On April 8, Jordan Cove Energy Project, LP (JCEP)(CP13-483) and Pacific Connector Gas Pipeline, LP (PCGP)(CP13-492) filed a joint request for rehearing of FERC’s order issued March 11th that effectively denied JCEP’s application for authorization under section 3 of the Natural Gas Act (NGA) to construct and operate a liquefied natural gas (LNG) production and export facility and Pacific Connector’s application for authorization under section 7 for authorization to construct and operate a natural gas pipeline.



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Concentric Energy Advisors
Mark your calendar for the Energy Bar Association’s 2016 Annual Meeting & Conference on June 7-8th!

Concentric is a proud sponsor of the EBA’s Annual Meeting. Discussions will be focused on the legal issues related to all aspects of energy law including antitrust, international energy transactions, legislation and regulatory reform, electric utility regulation, alternative dispute resolution, finance and transactions, and environment and public lands at federal, state, and international levels.

Event Dates: Tuesday, June 7, 2016 – Wednesday, June 8, 2016

Event Location: Renaissance Downtown Hotel 999 Ninth Street NW Washington, DC 20001

Concentric is Pleased to Announce Expansion of Our Gas Market Modeling Capability!

Concentric has expanded our capabilities in the area of the modeling of natural gas markets. Our experts utilize a variety of tools, including the Gas Pipeline Competition Model (GPCM) and other proprietary modeling tools and databases to develop gas market simulations and price forecasts. By marrying this analytical capability with our experts’ extensive experience in gas market economics, we can provide clients with market insights that confer a competitive advantage. The gas modeling team has successfully deployed these competencies to provide clients with long- and short-run price forecasts, analyses of changes to infrastructure on market conditions, and identification of new market opportunities, in a variety of commercial and regulatory settings.



Contact Concentric’s Gas Market Experts to Learn More ›
Concentric Energy Advisors
Concentric Energy Advisors
Integrated Resource Planning Today – Challenges and Opportunities

Integrated resource planning has been a fundamental part of the utility landscape for decades. Despite regulatory and technological changes that have transformed the industry, the basic purpose of integrated resource planning has remained largely unchanged – to provide analysis-driven long-term planning that ensures sufficient resources to meet forecasted customer needs at the least cost, taking into account the variety of supply and demand resources and applicable environmental mandates.

While this core purpose has not changed, integrated resource planning has clearly evolved over time. Today, integrated resource planning reflects several key trends: 1) numerous and diverse filing requirements; 2) a focus on non-wires alternatives to traditional grid investments (NWAs) and distributed energy resources (DERs); 3) the need to weigh complex and nuanced policy questions; and 4) increased uncertainty regarding key cost drivers. These trends embody significant challenges for utilities. They may also represent an important opportunity, however, if utilities employ an approach that is comprehensive, strategic, and proactive.

This article discusses these challenging trends and key elements for transforming them into opportunities.



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Utility M&A: Realizing the Value of the Deal

Utilities increasingly look to mergers and acquisitions to enhance the performance of the combined entity and create opportunities. Benefits of the right transaction may include savings for customers, earnings for investors, diversification/mitigation of risk, improvements in service, safety and reliability, enhanced career opportunities, benefits to the local community, and advancements in regulatory policies.

As utility mergers have increased so have their stakeholder and regulatory scrutiny. Recent mergers have seen active interventions by a broad array of parties ranging from the traditional consumer advocates to other utilities, local communities, environmental groups and participants in various segments of the energy industry.



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Concentric Energy Advisors
Careers at Concentric
Concentric is Seeking a Utility Finance Expert

We are looking an experienced individual that can direct a team of financial analysts and assume responsibility for a diverse set of client work products that include expert testimony, reports and presentations on cost of capital and other financial issues, asset valuations, due diligence and other transaction support services.



Apply Today ›
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