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WEDNESDAY, SEPTEMBER 18, 2019
2:00 PM ET / 1:00 PM CT / 12 PM MT / 11:00 AM PT
LOWERING ENERGY COSTS WITH NON-WIRES
SOLUTIONS
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SPEAKERS
Lori Lybolt Consolidated Edison
Lisa SchwartzLawrence Berkeley National
Laboratory
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ENERGY TECHNOLOGIES AREA ENERGY ANALYSIS AND ENVIRONMENTAL IMPACTS D IV ISION
Lowering energy costs with
non-wires solutions
Lisa Schwartz
National Conference of State Legislatures webinar
September 18, 2019
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Agenda
What are non-wires solutions?
What is the distribution system?
Why may states be interested in non-wires solutions?
How do utilities consider them?
How can they save consumers money?
What actions have states taken?
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What are non-wires solutions (or alternatives)?
Investments in distributed energy resources (DERs) — energy efficiency, demand response, distributed generation and storage — that provide specific services at specific locations to defer, mitigate or eliminate the need for traditional transmission*and distribution (T&D) infrastructure. Focus today is on distribution.
◼ A DER is a resource sited close to customers that can provide all or some of their immediate electric and power needs and can also be used by the system to either reduce demand (such as energy efficiency) or provide supply to satisfy the energy, capacity, or ancillary service needs of the distribution grid. The resources, if providing electricity or thermal energy, are small in scale, connected to the distribution system, and close to load.
◼ Examples include solar photovoltaic, wind, combined heat and power, energy storage, demand response, electric vehicles, microgrids, and energy efficiency.NARUC Staff Subcommittee on Rate Design, Distributed Energy Resources Rate Design and Compensation Manual
* For transmission, market operations also may serve as non-wires solutions.
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What is the distribution system?
Portion of electric system composed of medium voltage (up to 69 kV) lines, substations, feeders and related equipment
Transports electricity to and from homes and businesses and links customers to high-voltage transmission system
Physical infrastructure (transformers, wires, switches and other equipment) and cyber components (information, telecommunication and operational technologies needed to support reliable operation)
See Modern Distribution Grid - Volume III (“Resources” at back of slide deck) Graphic from https://www.eia.gov/energyexplained/index.cfm?page=electricity_delivery
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Why may states be interested in non-wires solutions?
Source: Edison Electric Institute
Utility distribution system investments are large.
For investor-owned utilities, they account for the largest portion (30%) of capex:$37.5B in 2018
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States are responding to many drivers for improved distribution planning.
More DERs — cost reductions, policies, new business models, consumer interest
Resilience and reliability
More data and better tools to analyze data
Aging grid infrastructure and utility proposals for grid investments
Need for greater grid flexibility in areas with high levels of wind and solar
Interest in conservation voltage reduction and volt/VAR optimization
Non-wires alternatives to traditional solutions may provide net benefits to customers
✓
✓
✓
✓
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How do utilities consider non-wires solutions in electricity system planning processes?
Distribution planning - Assesses needed physical and operational changes to local grid
Integrated resource planning (vertically integrated states) - Identifies future investments to meet bulk power system reliability and public policy objectives at a reasonable cost Can consider scenarios for DERs and impacts on need for,
and timing of, utility resource investments
Transmission planning – Identifies future transmission expansion needs and options for meeting those needs
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0
50
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150
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Dis
trib
uti
on
Av
oid
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Co
st (
$/k
W-y
r)
PGE
SCE
SDGE
Dis
trib
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on
Avo
ide
d C
ost
($
/kW
-yr)
DERs must be in the right place and operate at the right time to meet reliability needs.
Value of DERs for the distribution system depends on location.
Value may be associated with a distribution substation, individual feeder, section of feeder, or a combination of these components.
Avoided distribution costs vary by area. DERs must be targeted to capture the highest value.
DERs must operate at the right time to ensure they will relieve the identified constraint and provide generation or load reduction during the peak day.
0
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200
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300
350
400
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PGE
SCE
SDGE
PG&E
SCE
SDG&E
E3 study for California using utility distribution planning information10
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Considering non-wires solutions in distribution planning
Annual distribution planning process Identify and define distribution
system needs
Identify and assess possible solutions
Select projects to meet system needs
Long-term utility capital plan Includes T&D solutions and cost estimates, typically over a 5- to 10-year period,
updated every 1 to 3 years
Non-wires solutions are options for solutions to meet distribution system needs related to load growth, reliability and resilience. Typically consist of a large DER or a portfolio of DERs that can meet the specified need
Screening tools used by CA, NY are publicly available (snapshot in “Extra Slides”)
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How can non-wires solutions save energy costs?
Defer or avoid infrastructure upgrades
Implement solutions incrementally, offering a flexible approach to uncertainty in load growth and potentially avoiding large upfront costs for load that may not show up
Typically, the utility issues a competitive solicitation for non-wires solutions for specific distribution system needs and compares these bids to planned traditional grid investments (e.g., distribution substation transformer) to determine the lowest reasonable cost solution, including implementation and operational risk assessment.
Locational net benefits analysis systematically analyzes costs and benefits of DERs to determine the net benefits DERs can provide for a given area of the distribution system.
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Valuation of DERs as non-wires solutions began several decades ago.
Methods were developed in the 1990s to value DERs for deferring or avoiding distribution capacity. At that time, utilities began to test targeting and deploying DERs as non-wires solutions and conducted evaluations. Transmission providers (e.g., Bonneville Power Administration) also have considered non-wires solutions for some projects.
Lessons learned
◼ Value. Value of DERs for avoiding or deferring capital upgrades may not be large for areas with high load growth where significant capacity is needed. The highest value opportunities for deferral are where low load growth is driving the utility towards large capital investments, and there is significant value per kilowatt of peak load relief.
◼ Timing. Sufficient time is required to deploy non-wires solutions, to make sure they are online before the constraint occurs and to verify reliable operation at the time needed — e.g., see New York Joint Utilities suitability criteria:
◼ 18-24 mos. for projects $300k* to $1M
◼ 36-60 mos. for projects over ≥ $1M
Source: Adapted from E3, prepared for Berkeley Lab
*Transaction costs may be too high for projects smaller than this threshold. DER aggregation can solve that problem.
N-1 Limit
DER Operation
MW
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State engagement in distribution system planning is increasing.
For example, requirements for utilities to:
Report on poor-performing circuits and improvement plans
File distribution system or grid modernization plans with public utility commissions (PUCs)
Consider non-wires alternatives (CA, CO, HI, ME, MN, NV, NY, RI) – Examples in next slides
◼ Proceedings, pilots and studies in several additional states (e.g., see OR in “Extra Slides”)
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California
AB 327 (2013) requires electric utilities to submit distribution resources plans (DRPs) to “identify optimal locations for the deployment of distributed resources,” including:“Evaluate locational benefits and costs of distributed resources … based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits, and any other savings the distributed resources provides to the electric grid or costs to ratepayers….”
PUC order on DRPs (2014) established guidance to utilities
PUC approved a Distribution Investment Deferral Framework (DIDF, 2018) to identify and capture opportunities for DERs to cost-effectively defer or avoid utility investments planned to mitigate forecasted distribution system deficiencies. ▪ Includes annual Grid Needs Assessments and
Distribution Deferral Opportunity Reports that identify distribution upgrades that could be deferred with DERs
▪ Advisory Group identifies candidate distribution deferral projects for competitive solicitation
▪ PUC approved 1st requests for offers (RFOs) in February for SCE, PG&E and SDG&E
▪ Locational Net Benefits Analysis – Avoided Cost Calculator for system-level values, plus location-specific methods
Source: PG&E presentation on 2019 RFO for 10.6 MW support of local distribution capacity relief in three 3 areas in central California
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Colorado
SB 19-236 requires PUC to promulgate rules establishing filing of a distribution system plan (DSP), including: Methodology for evaluating costs and net benefits of using DERs as Non-Wires Alternatives (NWAs)
Threshold for size of new distribution projects
Requirements for DSP filings, including:◼ Consideration of NWAs for new developments (>10,000 residences)◼ Load forecasts from beneficial electrification programs
◼ Forecast of DER growth
◼ Planning process for cyber and physical security risks◼ Proposed cost recovery method
◼ Anticipated new investments in distribution system expansion
◼ Economic impacts of NWAs◼ Estimated year when peak demand growth merits
analysis of new NWA projects
Public interest in approval of NWAs
Ratepayer benefits from NWAs
Benchmarks or accountability mechanisms Xcel Energy hosting capacity map (Denver area)
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Hawaii
PUC ordered Hawaiian Electric Companies (HECO) to issue competitive solicitations for grid services from customer-sited DERs. Instead of developing planning estimates of cost
To replace capacity, energy and ancillary services (e.g., contingency reserves) from two fossil-fuel generating plants planned for closure
HECO Integrated Grid Planning merges planning processes for generation, T&D Integrates procurement of non-wires solutions and grid-scale resources
Identifies system needs, coordinates solutions, and develops optimized, cost-effective portfolio of assets
Stakeholder council, technical advisory panel, working groups
Utility evaluates, scores and ranks bids 50/50 weighting for price ($/kW) and non-
price criteria
Eight non-price criteria
HECO selects short list of highest ranked proposals, then solicits best and final offers from proposers
Battery storage. Source: Sandia National Laboratories
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Minnesota
Minn. Stat. §216B.2425 requires utilities to submit biennial T&D plans to the PUC.
Xcel Energy must “identify in its report investments that it considers necessary to modernize the transmission and distribution system by enhancing reliability, improving security against cyber and physical threats, and by increasing energy conservation opportunities by facilitating communication between the utility and its customers through the use of two-way meters, control technologies, energy storage and microgrids, technologies to enable demand response, and other innovative technologies.”
And “conduct a distribution study to identify interconnection points on its distribution system for small-scale distributed generation resources and shall identify necessary distribution upgrades to support the continued development of distributed generation resources”
PUC established Integrated Distribution Planning requirements for Xcel Energy in Docket No. 18-251and for smaller regulated utilities including:
For projects >$2M, analyze how non-wires solutions compare with traditional grid solutions in terms of viability, price and long-term value
Specify distribution system project types (e.g., load relief or reliability) as well as timelines, cost thresholds and screening process for NWS
Xcel Energy filed its first Integrated Distribution Plan in November 2018
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Nevada
SB 146 (2017) requires utilities to file distributed resource plans
(DRPs) to evaluate locational benefits and costs of distributed generation, energy efficiency, storage, electric vehicles and demand response technologies
◼ “…based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits and any other savings the distributed resources provide to the electricity grid for this State or costs tocustomers of the electric utility or utilities.”
◼ DRP identifies standard tariffs, contracts or other mechanisms for deploying cost-effective distributed resources that satisfy distribution planning objectives
◼ DRP filed with integrated resource plan and covers utility’s three-year IRP action plan
PUC approved Distribution Planning Guidelines in 2018.
◼ 6-year forecast of net distribution system load (down to feeder level) and distributed resources
◼ Hosting capacity analysis with online maps
◼ Grid Needs Assessment compares traditional and DER solutions for forecasted T&D system constraints
“A utility may recover all costs it prudently and reasonably incurs in carrying out an approved DRP, in the appropriate separate rate proceeding.”
NV Energy filed 1st DRP in April 2019 as amendment to 2018 IRP
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Contact
Lisa Schwartz, Deputy Group LeaderBerkeley Lab
Electricity Marketsand Policy Group
(510) 486-6315; [email protected]
https://emp.lbl.gov/
Click here to stay up to date on our publications, webinars
and other events and follow us @BerkeleyLabEMP
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Resources
U.S. Department of Energy’s (DOE) Modern Distribution Grid guides
Integrated Distribution Planning: Utility Practices in Hosting Capacity Analysis and Locational Value Assessment, by ICF for DOE, 2018 Regional trainings for PUCs and state energy offices: New England, MISO footprint, West, Mid-Atlantic
Alan Cooke, Juliet Homer, Lisa Schwartz, Distribution System Planning – State Examples by Topic, Pacific Northwest National Laboratory and Berkeley Lab, 2018
Juliet Homer, Alan Cooke, Lisa Schwartz, Greg Leventis, Francisco Flores-Espino and Michael Coddington, State Engagement in Electric Distribution Planning, Pacific Northwest National Laboratory, Berkeley Lab and National Renewable Energy Laboratory, 2017
Berkeley Lab’s Future Electric Utility Regulation reports
Berkeley Lab’s research on time- and locational-sensitive value of DERs
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ENERGY TECHNOLOGIES AREA ENERGY ANALYSIS AND ENVIRONMENTAL IMPACTS D IV ISION
EXTRA SLIDES
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Non-wires Alternatives in Oregon
Staff white paper lays out proposed distribution planning process
PUC proceeding underway
Surveyed utilities and stakeholders on distribution planning strategies and practices
Pacific Power and Energy Trust of Oregon* pilot targeted energy efficiency to defer a substation upgrade.
Measure peak demand savings
Evaluate ability to replicate strategiesin other regions served by utility
Develop processes for coordinated implementation
Determine needed changes to improve targeted efficiency deployment to defer system upgrades
*Third-party administrator for energy efficiency programs
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DER Screening Tools
Project applicability: The nature of the problem and whether DER can solve it
Project timeline: Whether there is time to implement a targeted DER program in the area
Project cost: The potential value for avoiding the investment
Maximum incentive levels: Marginal avoidable cost ($/kilowatt)
Source: Adapted from E3, prepared for Berkeley Lab; table from Orange & Rockland (NY)
Capacity Expansion DER Screening Checklist Page 1 of 3
Project Name Example Substation In Service Date: 2018
Description Analysis - Avoid distribution ties and New Example sub
Author Date of Review:
Project Applicability
1. Can load reduction or generation solve this problem? Yes If no stop
If no, please identify the main project driver(s) below:
Replace obsolete / aging equipment Correct poor reliability problem
Improve reliability through secondary source etc. Comply with PSC standards
Work at the request of others Safety
Add operational flexibility
Other :
2. Is the project entirely within ISO or FERC jurisdiction? No If yes, stop
Project TimeLine
Current Date Project Commitment Date Project in-Service Date
2/1/2016 RFP Lead Time (months) 2/1/2017 Construction lead time 5/1/2018
| 12 | | 14.9 |
3. Is the project need date at least 18 months in the future? Yes If no stop
4. Is the major project commitment date closer than ___ months in the future? Yes If no, stop
Project Cost
All costs in constant dollars
Expense
Year
Energized
Year
Total Cost
($000)
Excluded cost
($000)
Net Cost
(000) Equipment (Select)
2016 2018 1,162$ 1,162$ -$
2017 2018 1,340$ 1,340$ -$
2017 2018 960$ 960$ -$
2018 2018 6,337$ -$ 6,337$
-$
-$
-$
-$
Total Cost 9,799$ 3,462$ 6,337$
Exclude land costs, if there are risks of land cost increases or loss of parcel availability
5. Is the total project cost >= $500,000 Yes If no, stop
Avoidable Cost Levels - Contract Page 2 of 3
DER Peak Load reduction (MW) needed to defer the project
Year: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2013
Minimum Total MW: 5.0 5.5 5.9 6.4 6.8 7.3 7.7 8.2 8.6 9.1
Avoidable Costs 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year
$/kW (contract) 97.72$ 173.99$ 234.00$ 281.47$ 319.10$ 348.94$ 372.52$ 391.03$ 405.40$ 416.38$
$/kW-yr (level) 97.72$ 89.65$ 82.81$ 76.95$ 71.85$ 67.39$ 63.46$ 59.95$ 56.81$ 53.99$
Maximum Incentive 488,605$ 948,230$ 1,380,595$ 1,787,316$ 2,169,914$ 2,529,820$ 2,868,380$ 3,186,860$ 3,486,451$ 3,768,273$
6. Is the total avoidable cost in any year greater than $ ___ / kW
7. Is the project sum of avoidable cost over all years greater than $ ___ / kW
8. Are either or both questions "yes" If no, stop
Discount rate: 8.75% Revision Date: Discount rate from Capital Accounting
Inflation rate: 2.30% Revision Date: Inflation from Capital Accounting
Recommendation
Candidate for RFP? (Y/N): If no, reason:
Reviewer Date of Review:
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Non-Wires Solutions
Lori Lybolt
Utility of Future Team
September 18, 2109
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Corporate Structure
BUSINESS CONTEXT
26
Today’s focus
Con Edison Transmission, Inc.
Con Edison Clean Energy Businesses,
Inc.
Consolidated
Edison
Development, Inc.
UtilitiesA$43.2B (90%), R$11.3B (94%)
Clean EnergyBusinesses
A$2.7B (6%), R$0.7B (6%)
Orange and Rockland
Utilities, Inc.(O&R)
A$2.8B (6%), R$0.9B (7%)
Consolidated Edison Company of New York, Inc. (CECONY)
A$40.5B (84%), R$10.47B (87%)
Con Edison Transmission
A$1.2B (2%), R$3M (0.02%)
Consolidated
Edison Transmission,
LLC
Rockland Electric
Company (RECO)
Consolidated Edison, Inc. (ED)Assets: $54B Market Cap: $24.5B Revenue: $12B
Con Edison Gas
Pipeline and
Storage, LLC
Consolidated
Edison Solutions,
Inc.
Consolidated
Edison Energy, Inc.
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Utility Service Territory
BUSINESS CONTEXT
27
Electric▪ 3.7M customers
▪ 97.5K miles underground cable
▪ 38.8K miles overhead cable
▪ 40% of NYS peak
Total▪ 4.9M+ customers
▪ 136.3K miles of cable
▪ 10K miles of pipes
Steam▪ 1,650 customers
▪ 105 miles of pipes
▪ 23B pounds per year
▪ Largest district in US
Natural Gas▪ 1.2M customers
▪ 9.9K miles of pipes
NYC Area Energy Transmission & Distribution▪~9.1M population; ~1.9K-square-mile area
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Vertical Landscape
BUSINESS CONTEXT
28
• The NYC metro area creates about 9% of the U.S.
GDP – home to 10% of the Fortune 500
• Peak demand of 13,320 MW – 215 MW per square
mile in Manhattan
• Average monthly residential electricity use in our
service territory is a third of the national average (at
300 kWh/month)
• New York State spends less on energy and
generates fewer greenhouse gases per capita than
any state in the nation (EIA)
Electric Consumption by
Customer Class
41%
34%
25%
Residential Commercial Industrial
United
States
Con
Edison 50% 50%
<1%
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State’s Energy Plan
NEW YORK STATE ADVANCING CLEAN ENERGY
New York State has ambitious 2030 goals with three focus areas.
29
Resources
23%Increase in Statewide
Energy Efficiency in
Buildings
40% 50%Reduction in GHG of Electricity
Emissions from Generation from 1990 Levels Renewable Energy
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50x30 State’s Clean Energy Standard
NEW YORK STATE ADVANCING CLEAN ENERGY
Requires all electricity suppliers to buy a portion of their power from renewable and qualified nuclear resources.
30
Renewable Energy Credits Zero Emissions Credits
• NYSERDA to procure RECs via 20-year REC-only
contracts; resale to LSEs
• Wind, solar, biomass, and distributed renewables
built since Jan. 1, 2015
• Out-of-state eligible if deliverable to NY
• First-of-its-kind solution to prevent premature
nuclear retirements
• Upstate nuclear units, with future eligibility for
Indian Point
• Price based on Social Cost of Carbon
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What does 50x30 really mean?
NEW YORK STATE ADVANCING CLEAN ENERGY
31
Solar Only
• 25,000 MW of solar installed capacity
• Would cover all of the 5 boroughs with solar panels
Wind Only
• 15,000 MW of wind installed capacity
• Would cover all of Long Island plus NYC with wind projects
Hydro Only
• 4,000 MW of hydro
• Roughly the size of two Hoover Dams
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Offshore Wind
NEW YORK STATE ADVANCING CLEAN ENERGY
New York State announced ambitious goals for Offshore Wind, 9,000MWs by 2030
32
2018-2020 2021-2023 2024-2026 2027-2030 2030-2035
Phase I – 800+ MW
NYSERDA RFPs OSW online
OSW developer responsible for transmission connection to shore
Phase II – 1,600+ MW (2,400 total MW)
Opportunity to consider transmission options
Phase III – up to 6,600 MW (9,000 total MW)
Will be impacted in part by transmission solutions in Phases I and II
NYSERDA RFPs OSW online
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Offshore
Collector
Substation(s)
Vision for Phase ll Transmission
NEW YORK STATE ADVANCING CLEAN ENERGY
A competitive process for Phase II transmission can improve feasibility of achieving goals while reducing costs
and environmental impacts.
33
Generator
Lead
HVDC Cable
DC/AC
Converter
Station
Onshore
Substation
Local System
HVDC Transmission
Competitive Process
Local
Upgrades
AC/DC
Converter
Station
Collector
System
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Regulatory Policy Reform
REFORMING THE ENERGY VISION (REV)
34
Distributed System
Implementation Plan
REV Track Two
Standby Rates
Earnings Adjustment Mechanisms
Platform Service
Revenues
Benefit Cost
Analysis
Demonstration Projects
Non-wires Solutions
Clawback Reforms
Clean Energy Standard
Wholesale Market Reforms
Zero Emissions
Credits
Demand Management
Programs
Renewable Energy Credits
Carbon Markets &
RGGI
Customer Choice
Retail Access
Community Choice
Aggregation
Private & Community
DG
Energy Efficiency Transition
Plan
Low Income Customer
Engagement
Smart Home Rates
Regulation of DER
Providers
Value of DER
REVTrack One Interconnection
Standards
Utility Bill Content
New York Prize
MicrogridsClean Energy
Fund
NY-Sun Solar
Incentive
NY Green Bank
NYISO DER
Roadmap
Customer Data Sharing
Rate Design
Market TransformationBeneficial
Electrification
Advanced Metering
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Utility Business Model
REFORMING THE ENERGY VISION (REV)
Economic incentives for Utilities that are aligned with clean energy policy objectives.
35
Traditional Innovative
Traditional rate
base opportunities
New rate base
opportunities
Earnings
adjustment
mechanisms
Platform service
revenues (PSRs)
• Pipes & wires
• Regulated return
on hard assets
• Regulatory assets
• DSP and software
• Energy storage
• System efficiency
• Energy intensity
• Interconnection
• Carbon reduction
• Marketplace
transaction fees
• AMI network use
• Other
Non-wires alternatives and demonstration projects
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Utility Distribution System Platform (DSP)
REFORMING THE ENERGY VISION (REV)
REV’s main theme focused on integration of distributed energy resources.
36
Customer resources
& behavior
Utility business &
operations
Power Flow
Integrate individual resources1
Integrate resource portfolios2
3 Integrate markets
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Fast tracked residential solar
REFORMING THE ENERGY VISION (REV)
We expedited the interconnection process to integrate individual resources.
37
• Launched June 2016
• PV up to 25kW
• Approval tobuild in < 1hr
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Utility dispatches portfolio to meet distribution system needs
REFORMING THE ENERGY VISION (REV)
We integrated distributed energy resources into our planning process to defer traditional infrastructure.
38
770
760
750
780
790
800
810
820
11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour
1Hour
12Hour
8Hour
1Hour
6Hour4Hour
2Hour
2Hour4Hour
1Hour
1Hour
1Hour
Network peak load
MW
Non-Wires resource
portfolio
Sample network peak day curve
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REV demonstration projects testing innovative ideas
REFORMING THE ENERGY VISION (REV)
We are integrating markets and testing new business models to enable distributed energy resources.
Connected
Homes
Beyond ‘Behind
the Meter’
Storage on
Demand
Building
Efficiency
Marketplace
Smart Home
RatesEnergyFit EV Fast Charging
Vehicle to Grid
(V2G)
Electric Buses
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Vehicle-to-grid (V2G) school bus
• Five Lion Electric Type D electric school buses serving
White Plains School District
• Con Edison will cycle bus batteries for grid services and
observe viability of vehicle-to-grid model including
impacts on battery
• 95% bus uptime during 2018-2019 school year
• Key technology partner replaced – Modification from off-board to on-board inverters.
– V2G delay from summer to fall 2019
• Project a collaboration with: Lion Bus, Nuvve, National
Express, and First Priority
REFORMING THE ENERGY VISION (REV)
We are testing innovative ways to provide grid services by using batteries in school buses.
Lion bus in Manhattan
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Utility Infrastructure Planning
NON-WIRES SOLUTIONS CASE STUDY
We integrated distributed energy resources into our planning process to defer traditional infrastructure.
Time
Lo
ad
Infrastructure
Capacity
Upgraded
Infrastructure
Capacity
Load
Forecast
TimeL
oad
Infrastructure
Capacity
Upgraded
Infrastructure
Capacity
Load
Forecast
Load Forecast
w/EE
Non-Wires Solutions ApproachTraditional Approach
New
Infrastructure
Investment
41
Defer
Infrastructure
Investment
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▪ 12 MW Load Reduction by May
2016
▪ 31 MW Load Reduction by May
2017
▪ 9 MW Load Reduction by May
2018
**1 MW can power 1,000 homes
52 MW Demand Reduction
Brooklyn Queens Load Relief Need
NON-WIRES SOLUTIONS CASE STUDY
The BQDM challenge: solution must meet 12 hour distribution capacity shortfall.
42
Feeder
Capability
2023 Forecasted
Peak Demand Curve2018 Forecasted Peak
Demand Curve
BQDM Feeder Capability vs Forecasted Customer Demand
Shortfall
System Load Relief Need
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Brooklyn-Queens Demand Management Program (BQDM)
• Peak growth in 3 networks in
Brooklyn-Queens
• In 2014 started $200 MM DER
incentive program, 52 MWs
– Customer-sided (41 MW,
$150 MM)
– Utility-sided (11 MW, $50
MM)
• In 2017 extended program
timeline, program continues
today
We deferred $1.2 billion investment in traditional network upgrades with distributed solutions.
NON-WIRES SOLUTIONS CASE STUDY
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BQDM Distributed Resource Portfolio
NON-WIRES SOLUTIONS CASE STUDY
We engaged customers to develop the portfolio of behind the meter assets.
44
-5
0
5
10
15
20
25
30
35
Load
Re
lief
(MW
)
Hour Ending (Design Peak Day)
Energy Efficiency
• Energy Efficiency
• Battery storage
• Thermal storage
• Solar
• Fuel cells
• Combined heat
and power
generators
• Demand Response
Network Peak Load
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BQDM Customer Resource Example: Solar + Storage + Fuel Cell
NON-WIRES SOLUTIONS CASE STUDY`
Customer sited resources located in low income apartment building.
• Lowers customer bills
• Meets system need during defined time
• Certainty via load reduction guarantees in contract
+ +
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BQDM Utility Resource Example: Battery Storage
• BQDM PORTFOLIO COMPONENT
Utility owns and operates 2MW, 12MWh Lithium Ion battery storage project.
NON-WIRES SOLUTIONS CASE STUDY
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Process for Non-Wires Solutions
NON-WIRES SOLUTIONS CASE STUDY
We developed a standardized framework to meet objectives and drive least cost for customers.
Identify
System
Needs
NWS
Suitability
Competitive
Solicitation
Benefit Cost
Analysis (BCA)
Evaluation &
Procurement
47