ADVANCED POLICY BOOTCAMP
NEW YORK, REFORMING THE ENERGY VISION
Advanced Policy Bootcamp
Ross Astoria
Chair, Board of Directors
Dean, Advanced Policy Bootcamp
Citizens’ Climate Lobby
2
“Money prices are the product of conflicts of
interest and compromises; they thus result
from power constellations . . . [The] price
system [is] a struggle of man against man . . .
and prices are expressions of the struggle; they
are instruments of calculations only as
estimated quantifications of relative chances in
this struggle of interests.” – Max Weber,
Economy and Society
“We should recognize ‘price’ for what it is – a
tool, a means, an expedient.” – Justice Jackson,
concurring in part, FPC v. Hope Natural Gas
(1944)
We use
takeour
thevoices
most generous
to be heard.
approach
This simple
to other
act people
transforms
as possible
us from—
spectators
appreciation,
to engaged
gratitude,
citizens,
and respect.
and it reveals
We listen,
the true
we work
nature
to of
find
democracy
common to
values,
us. We
and
are
wevolunteer-driven
endeavor to understand
— trusting
our
volunteers
own biases.
to make
We are
important
honest and
decisions,
firm. We
and
know
to create
that there
and develop
is a placethings
for protest,
that will
but
beour
valued
approach
by Citizens’
is to build
Climate
consensus
Lobby. — that’s what will bring enduring change. That’s why elected officials and their staff, no m
FERC Wholesale Markets
We use
takeour
thevoices
most generous
to be heard.
approach
This simple
to other
act people
transforms
as possible
us from—
spectators
appreciation,
to engaged
gratitude,
citizens,
and respect.
and it reveals
We listen,
the true
we work
nature
to of
find
democracy
common to
values,
us. We
and
are
wevolunteer-driven
endeavor to understand
— trusting
our
volunteers
own biases.
to make
We are
important
honest and
decisions,
firm. We
and
know
to create
that there
and develop
is a placethings
for protest,
that will
but
beour
valued
approach
by Citizens’
is to build
Climate
consensus
Lobby. — that’s what will bring enduring change. That’s why elected officials and their staff, no m
Investor Owned Utilities Map
We use
takeour
thevoices
most generous
to be heard.
approach
This simple
to other
act people
transforms
as possible
us from—
spectators
appreciation,
to engaged
gratitude,
citizens,
and respect.
and it reveals
We listen,
the true
we work
nature
to of
find
democracy
common to
values,
us. We
and
are
wevolunteer-driven
endeavor to understand
— trusting
our
volunteers
own biases.
to make
We are
important
honest and
decisions,
firm. We
and
know
to create
that there
and develop
is a placethings
for protest,
that will
but
beour
valued
approach
by Citizens’
is to build
Climate
consensus
Lobby. — that’s what will bring enduring change. That’s why elected officials and their staff, no m
Rural Electrical Utilities Map
We use
takeour
thevoices
most generous
to be heard.
approach
This simple
to other
act people
transforms
as possible
us from—
spectators
appreciation,
to engaged
gratitude,
citizens,
and respect.
and it reveals
We listen,
the true
we work
nature
to of
find
democracy
common to
values,
us. We
and
are
wevolunteer-driven
endeavor to understand
— trusting
our
volunteers
own biases.
to make
We are
important
honest and
decisions,
firm. We
and
know
to create
that there
and develop
is a placethings
for protest,
that will
but
beour
valued
approach
by Citizens’
is to build
Climate
consensus
Lobby. — that’s what will bring enduring change. That’s why elected officials and their staff, no m
Barriers to DER Inclusion
1. General difficulty: the state first secures the value of
the utility’s fixed capital.
2. All other assets which are useful to the system are
valued secondarily or derivatively
3. Creates well-channeled finance patterns which need to
be overcome.
REV Orders
1. Revising utility revenues streams
2. Distributed System Implementation Plan
3. modifying low- to moderate-income programs
4. adopting a clean energy standard
5. community net metering
6. community choice aggregation
7. "resetting" the retail energy service provider market
8. establishing a benefit cost analysis framework
9. establishing a clean energy fund, Green Bank
10. valuing distributed energy resources
11. utility administered energy efficiency portfolios
Green Bank
1. Repurposing System Benefit Charges (SBCs)
2. Using a “Chapter Approach” – Green Bank is to
keep a portfolio of projects
1. Communities – model Community Choice
Aggregation ordinance
2. Commercial – Real Estate Tenant
3. Grid Modernization - DER
4. Industrial – training for energy efficiency
5. Innovation Capacity and Business
Development – supporting cleantech start
ups
Example Financing, Green Bank
1. $11 million to New York City Housing Authority
to install LEDs behind master-metered public
housing (est. saving first year 11,000 MWh and
5,500 MMt)
2. $20 million in subordinated capital to
RenewFund to extend $100 million in
unsecured loans for home energy efficiency.
(est. lifetime GHG reductions 570,000 –
605,000 MMt)
Value of Distributed Energy Resources
1. Solar now credited under Net Energy Metering
2. Short comings:
1. Over stimulate power production over
capacity
2. Insensitive to temporal and spatial location in
grid topology
3. Does not reflect other values, such as
demand flexibility
4. Does not closely capture environmental
values
The Value Stack
1. Energy Value
Commission: day ahead hourly zonal location
based marginal price as used for mandatory hourly
pricing (so would include avoided losses).
2. Installed Capacity Value
1. NYISO requires utilities (“Load Serving Entities”)
to purchase capacity based on their MW demand
during the statewide peak hour of the previous
year. Installed Capacity (ICAP)
2. ICAP now in the value stack
3. Environmental Values
Identified by the price of Renewable Energy
Credits (RECs) and fixed for a 20 year project
term.
Demand Reduction and
Location System Relief
Utility’s to produce a methodology for
identifying these values.
Market Transition Credit
• Make of the difference between NEM and the value
stack.
Community Choice Aggregation:
Sponsorship and Membership
Sponsor manages the solar garden, interfacing with
utility, contractor, and membership
Minimum 10 members, none of whom have more than
a 25 kW share of the project unless they comprise no
more than 40% of the solar garden output
Member must also subscribe to at least 1,000 kWh
annually and cannot exceed their historical average
annual consumption
Location and LMI
Solar Garden projects during phase I limited to location
“where they will bolster grid reliability or provide other
locational benefits and those that promote low-income
customer participation.”
NYDPS requires utilities to identify “Community DG
Opportunity Zones”
LMI Utility Programs
• LMI subsidized by other rate-payers
• Low Income Home Energy Assistance Program
(LIHEAP)
LMI Utility Programs
• Possible goal?:
• shift low- and moderate-income programs
from “cross-subsidies” between rate classes
and the general taxpayer to a “forward”
subsidies assigning ownership in a
renewable generating asset