EDF Envisions a New Electric Utility Business Model That Will Incorporate Clean Technologies, More Customer Engagement in New York

(New York, NY – July 18, 2014) Environmental Defense Fund (EDF) today filed comments (Track 1 and Track 2) in the groundbreaking “Reforming the Energy Vision” (REV) proceeding by the Public Service Commission to lead the way to a new regulatory paradigm and electric utility business model in New York State. EDF’s comments focus on both traditional objectives of resource adequacy and reliability of electrical service as well as clean energy solutions, customer engagement, and openness to innovation.

“New York gave birth to the electric power industry 130 years ago and is now boldly innovating its way toward the clean energy economy we need in the 21st century,” said Rory Christian, EDF Director, New York Clean Energy. “As advances in telecommunications and information systems create new opportunities for energy services we could not imagine just a few years ago, the outmoded utility business model that rewards monopoly utilities for selling an increasing amount of electricity from a centralized, fossil-fueled power plant to customers is out of sync with what we need now.”

EDF believes the Commission can achieve its objective of developing a new regulatory model for electric utilities that incorporates new technologies while addressing climate change in part by: 1) transitioning from traditional rate of return regulation to performance-based regulation; 2) fully valuing all costs and benefits associated with distributed energy resources; 3) removing barriers to non-utility entities participating in energy service markets; and 4) requiring the utility to optimize the load it serves.

EDF commends the Commission for considering these important issues and for the opportunity to provide comments.