Powering a New Generation of
Community Energy
New York Market Development Summit
Boosting Biogas Production at
Wastewater Treatment Plants
Cornell Club
New York, NY
May 21, 2015
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Greg Hale
Senior Advisor, Energy & Finance
Office of the Governor
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Energy Leadership Team
Ø  Richard Kauffman
Chairman of Energy & Finance, Office of the Governor
Ø  Audrey Zibelman
Chair, New York State Public Service Commission
Ø  John Rhodes
President & CEO, NYSERDA
Ø  Gil Quiniones
President & CEO, NYPA
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Outline
1. WHY
Why we need to rethink our clean energy policy
2. WHAT
What we’re driving towards
3. HOW
How we’re going to get there
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Why
Ø  Economic Burden on Customers
New York households spend nearly $2,500 per year on energy and
face the some of the highest rates in the country.
Electric Bill for Average Middletown Household* (600 kWh) : 2004-‐2013 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Delivery Commodity Surcharge 6
Why
Ø  Economic Burden on Customers
Over the past ten years, we spent $17 billion to maintain our
electric power grid. We predict that number to jump to $30
billion over the next decade.
$17B vs. $30B 7
54%
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NEW YORK’S EXTREME
WEATHER PROBLEMS
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Business-as-usual is no longer an acceptable
option for New Yorkers
CHALLENGES:
OPPORTUNITIES:
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Aging infrastructure
Poor system efficiency
Flat load growth
Climate change
• 
Rapidly falling technology costs
Rise of the digital economy and
new capabilities from IT
Proliferation of new business
models to create customer value
Historical regulatory approach and utility business
models are not well adapted to address challenges
and capture opportunities!
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Future of Energy
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What – REV: NY’s State Energy Plan
Reforming the Energy Vision (REV)
Reforming the Energy Vision — New York’s comprehensive
State Energy Plan to enable self-sustaining clean energy markets
at scale, supporting a cleaner, more reliable, and affordable energy
system.
Ø  What Do We Want and Need?
ü  Affordability
ü  Resilience & Reliability
ü  Choice, Control & Value ü  Clean Energy, Emissions Reductions
ü  Economic Development & Jobs
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Pillars of REV
1. Groundbreaking Regulatory Reform
§  REV Regulatory Proceeding – Tracks I & II
§  Distribution System Platform (DSP)
2. Evolution of State Programs
§  Clean Energy Fund
§  New York Green Bank
3. Leading by Example
§  Using the State’s Energy Assets
§ New York Power Authority (NYPA)
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In the face of these trends, the PSC has set out several
policy objectives for the future of NY’s electricity system
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Enhanced customer knowledge and
tools to support bill management
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Market animation – leverage customer
contributions w/ private capital
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System wide efficiency
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Fuel and resource diversity
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System reliability and resiliency
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Reduction of carbon emissions
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REV sets out our vision of a transformed electricity system
that will meet these policy objectives
•  Reorient the electric industry and the ratemaking
paradigm toward a customer-centered approach
that harnesses technology and markets.
•  Distributed Energy Resources - a primary tool in
planning and operating electric distribution
systems to achieve optimal system efficiencies.
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1. Establishing the DSP
DSP
•  Intelligent network
platform
•  Obligation and incentive
to support DER
•  DER providers as
customers and partners
•  Fair, open, transparent
transactive markets
DSP Responsibilities
•  Integrated system
planning
•  Grid operations
•  Market operations,
structure & products
DSP Provider
•  Utilities will be the DSP
providers
•  Represents expansion
of existing obligations
•  Will be supported
through Track 2
business model
changes
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2. Engaging Customers
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Create a vibrant digital marketplace (e.g., Amazon for power products)
to inform and transact
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Support low and moderate income customers
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Ease interconnection
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Increase the informational value of customer bills
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Implement key customer protections
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3. Animating the Market
Goal: create market confidence and build the DER asset base in the near-term
System Data
•  DSIPs provide system
planning information
Market Power
Early Actions
•  Utilities cannot own
DERs except in very
limited cases
•  Demand response tariffs
•  DSP will provide system
data at appropriate
granularity and timeliness
•  PSC monitoring &
recourse
•  Utilities charge fees for
value-added data analysis
•  Create market
oversight committee
•  Demonstration
projects
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4. Meeting Environmental Objectives
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Energy efficiency
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2015 targets are a minimum for 2016
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Increased flexibility and responsibility for utilities
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Focus on market transformation curve
• 
REV best practices guide to be created
Large-scale renewable energy
• 
New REV track (LSR track) to create options paper by June 1
Why
REFORMING NYSERDA
NYSERDA’s transformation includes the goals and vision of this
administration...
Principles
q  Fill in market gaps, as opposed to being the market
q  Leverage private sector capital
q  Focus on reducing soft costs, not subsidizing hard costs
Examples
q  NY Green Bank
q  Clean Energy Fund
q  Community Aggregation
19 What
How
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Clean Energy Fund
•  Ten-year, $5 billion funding commitment to support NYSERDA’s
clean energy programs and tactics, designed to deliver market
enabling strategies to:
•  Reduce Green House Gas emissions through efficiency and
renewables
•  Increase private investment and accelerate growth in the State’s
clean energy economy
•  Reduce customers’ energy bills
•  Provide more value to the customer
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Clean Energy Fund Approach
•  Enable competitive markets
•  Overcome specific market barriers through temporary interventions / support:
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*Enable market to develop trusted solutions customers can say “yes” to
*Reduce soft costs—customer acquisition, project development, financing
*Support technologies/market approaches as they bridge to wide-scale adoption
*Accelerate the progress of those market actors already doing good work
•  Strategic use of incentives as a bridge to a market solution; to enable the
development of market infrastructure; assist the underserved; maintain market
stability during transitions
•  Broaden fuel neutrality, to enable all promising solutions
•  Operate in a more market- and partner-responsive manner
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What to Expect
•  2015
•  2016
•  Groundwork
•  Transition
•  CEF Supplemental Filing
•  Stakeholder comments
•  Coordination with utilities and
transition plans
•  Responsible and orderly
transition/ ramp- down of Certain
Programs
•  Ongoing Partner Engagement
•  Operate new programs and
strategies
•  Continue and refine certain
programs, adjusting as needed
•  Continued partner engagement
•  Test, measure and adjust
approach to all programs and
strategies
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EVOLVING NYPA
NYPA’s transformation includes:
Ø  New Municipal Customer Services Business Model
Ø  Financing for Municipalities
Ø  Five Cities Energy Master Plans
Ø  New York Energy Manager
Rendering of facility
to open at CNSE in
early 2016
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How – Community Engagement
Communities are an important component
of this revolution...
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Opportunities for Water Resource Recovery Facilities
Ø  Anaerobic Digestion
Ø  Distributed Generation – Behind the Meter
•  Reduced Municipal Expenses – frees up operating $ for other
priorities
•  Combined Heat and Power (CHP)
•  Potential Additional Distributed Energy Resources (e.g., solar, EE)
Ø  REV Concepts
•  REV Demonstration Projects
•  Load Management through DERs with Storage
•  Integration into Community Microgrids
Ø  Innovative Financing Models
Ø  Community Choice Aggregation 2.0