New York's Reforming the Energy Vision

New York’s Reforming the Energy Vision (REV) is an initiative to reform energy networks initiated by Andrew Cuomo in 2014.Hurricane Sandy exposed New York’s infrastructure vulnerabilities. In response, Governor Andrew Cuomo directed his staff to develop a strategy for New York’s utilities that would modernize the current energy infrastructure and increase its resilience to severe weather and environmental events.

Per Governor Cuomo’s directive, on April 24, 2014 the New York State Department of Public Service prepared a Staff Report and Proposal entitled Reforming The Energy Vision (REV). The policy initiates a move away from the traditional utility model and instead creates a framework that encourages the increased integration of distributed energy resources (DER),allows customers to make educated decisions about their energy usage, supports environmental goals, and creates and more robust and resilient energy grid. The New York State Energy Plan is well integrated with REV and is intended to provide a roadmap for executing the REV policy.

REV consists of economic, environmental, energy infrastructure goals. The detailed and necessary actions that are required of all stakeholders to execute the goals of REV have only recently been more clearly defined. Many utilities are in the process of determining how they will respond the new policy. It is unclear how long the transition to the new model will take. There exist many uncertainties as it relates to the business model and potential costs for both utilities and retail customers.

Although there is a clear goal of lowering electricity costs for customers, there is little information on the expected overall cost of overhauling the current model. One of the largest costs will be creating the two way grid to support DER. Successful implementation of REV initiatives has the potential to save residents of New York state between $1.4 to $2.1 billion dollars per year.

By increasing the availability of distributed energy, REV is an attempt to lower electricity rates for all customers. State leaders are aware that low income customers and renters may be less likely to participate in distributed energy solutions like solar, that often require financing. As a solution, NY-SUN’s Community Distribution Generation program supports these customers. REV is also poised to make changes slowly such that utilities can remain profitable and effective operators of the grid through the transition.

In the aftermath of Hurricane Sandy, a policy such as REV was relatively easily accepted in New York by both politicians and individuals who felt first hand the inconveniences of a weak energy grid. New Yorkers also currently pay some of the highest rates in the country, attributed to the current utility business model, so any policy targeted at alleviating high prices would be considered favorable. '

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