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In an order issued on February 11, 2021, the New York State Public Service Commission (“Commission”) established a “host community benefit program” through which owners of large-scale renewable energy facilities (25 MW+) would pay $500/MW (for solar) or $1,000/MW (for wind) each year for the first 10 years of project operation to be distributed equally among all residential utility customers residing in the municipality where the facility would be located. See Case 20-E-0249, In the Matter of a Renewable Energy Facility Host Community Benefit Program, Order Adopting a Host Community Benefit Program (issued Feb. 11, 2021) (“Host Community Benefit Program Order”). Such benefits would complement—not replace—the numerous other benefits that renewable projects bring to local communities through payment in lieu of taxes (“PILOT”) agreements and other community agreements that fund local programs and initiatives.
Continue Reading New York State Public Service Commission Establishes Host Community Benefit Program

On April 1, 2019, the State Legislature approved a $175.5 billion budget for 2019-2020, which, among other things, eliminates an important sales tax exemption that allowed certain commercial customers of Energy Service Companies (“ESCOs”) to receive electric and gas supply without paying sales tax on transmission and distribution charges.

Since 2000, shortly after New York restructured its energy markets, the NYS Tax Law has included an exemption for commercial ESCO customers that was designed to incentivize consumer choice and enhance the ability of ESCOs to offer competitive prices (“Exemption”). Under the Exemption, commercial customers that received service from an ESCO would pay sales tax on the commodity portion of their bills, but not the delivery service. In contrast, default utility customers paid sales tax on both the commodity and delivery provided by the utility.
Continue Reading New York Repeals ESCO Sales Tax Exemption for Businesses

New York Public Service Commission Creates Opportunity for Relief from Expensive “Zero Emissions Compliance” Payments in Cases of Substantial Hardship

New York’s Clean Energy Standard (“CES”) requires, among other things, each Load Serving Entity (“LSE”) to purchase Zero Emission Credits (“ZECs”) from the New York State Energy Research and Development Authority (“NYSERDA”) in proportion to the statewide load served by such LSE in a given compliance year. The ZEC payments, in turn, subsidize the continued operation of nuclear baseload power to assist New York in meeting its ambitious clean energy and environmental goals.
Continue Reading Need a Break from Excessive Zero Emissions Compliance Payment Obligations? You Have Options.

On February 22, 2018, the New York Public Service Commission (“PSC”) issued an order (“Expansion Order”) expanding the size cap on projects eligible to receive compensation under the State’s Value of Distributed Energy Resources (“VDER”) tariff from 2MW to 5MW. The VDER tariff is designed to compensate Distributed Energy Resources (“DERs”) based on their actual value to the electric grid, such as proximity to load and ability to create certain system efficiencies. Prior to the Expansion Order, eligible projects were limited to a 2MW size cap, which created artificial inefficiencies.
Continue Reading New York Expands Size Cap to 5MW for Eligible Distributed Energy Resources

Six months after the legislature adopted an Energy Storage Deployment Program (“Storage Program”), Governor Andrew Cuomo signed the bill into law on November 29, 2017, signaling continued support for energy storage development in New York. The Storage Program − which will be subject to further modifications as described below − would amend the Public Service Law by requiring the New York Public Service Commission (“PSC” or “Commission”) and the New York State Energy Research and Development Authority (“NYSERDA”) to develop an energy storage deployment program to encourage the installation of qualified energy storage systems.
Continue Reading New York Sets the Stage for Energy Storage – Details to Be Developed in 2018 Public Service Commission Proceeding

As New York’s Reforming the Energy Vision (“REV”) initiative continues to promote increased deployment of Distributed Energy Resources (“DER”), the Public Service Commission (“PSC” or “Commission”) recently established the first set of Uniform Business Practices for DER providers (referred to as the “UBP-DERS”). See Case 15-M-0180, In the Matter of Regulation and Oversight of Distributed Energy Resource Providers and Products, Order Establishing Oversight Framework and Uniform Business Practices for Distributed Energy Resource Suppliers (issued October 19, 2017).
Continue Reading New York Public Service Commission Establishes Regulatory Framework for Distributed Energy Resource Providers – Registration Required by February 1, 2018

Battery.jpgNotwithstanding New York’s aggressive efforts to lead the way in renewable energy and carbon reduction, New York’s programs have been relatively anemic when it comes to encouraging energy storage. In 2015, New York launched the NY-Sun Commercial / Industrial Incentive Program, which offered performance-based incentives for large-scale solar photovoltaic (“PV”) systems, and provided a $50,000 additional incentive for projects that integrated energy storage. Most recently, the New York Public Service Commission adopted a mandate requiring that each individual New York utility deploy two separate energy storage projects at two separate substations or feeders by the end of 2018, which spurred the utilities to file a number of Requests for Proposals to address deficiencies on their networks.
Continue Reading NY Legislature Adopts Energy Storage Program to Address Peak Load and Intermittent Renewables: Legislation Would Require Storage Target by End of 2017

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On May 10, 2017, at the Independent Power Producers of New York (“IPPNY”) conference, Richard Kauffman, Chairman of Energy and Finance for New York, announced that John Rhodes has officially accepted his nomination to head the New York Public Service Commission (“PSC”) and that Governor Cuomo will soon nominate two more PSC commissioners so that the PSC can return to its full strength of five commissioners by the end of the legislative session, which is scheduled to close on June 21, 2017. Rhodes has been the president and CEO of the New York State Research and Development Authority (“NYSERDA”) since 2013, and previously directed the Center for Market Innovation at the Natural Resources Defense Council. Once confirmed, Rhodes will fill the seat vacated by former Chairman Audrey Zibelman, whose departure left the PSC with three vacant seats and gave rise to questions concerning whether the PSC has a quorum to make regulatory decisions.
Continue Reading PSC and FERC Returning to Full Strength: Agencies Set to Square Off on New York’s ZEC Program

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Public Service Commission Proposes Revisions to Uniform Business Practices

(See Part 1: NY PSC Pushes Storage as Critical Component to Utility Planning Process)

The New York Public Service Commission (“PSC” or “Commission”) issued a Notice Seeking Comments on Revisions to the Uniform Business Practices (“UBP Revisions”or “Notice”), which is the Commission’s latest effort to amend the Energy Service Company (“ESCO”) marketing requirements. In response to a seemingly minor 2017 statutory amendment to the NYS General Business Law protecting deceased accountholders from termination fees, and a narrowly drawn petition filed by Green Mountain Energy Company to eliminate the requirement that marketers provide their full first and last name on their employee badges for safety and privacy reasons, the Commission took the opportunity to propose sweeping new regulations to the retail energy market.
Continue Reading Phillips Lytle’s PSC Report from the Capital (Part 2)

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NY PSC Pushes Storage as Critical Component to Utility Planning Process:

Utilities Must Deploy Energy Storage Projects Before 2019

(See Part 2: Public Service Commission Proposes Revisions to Uniform Business Practices)

As Public Service Commission (“PSC”) Chair Audrey Zibelman departs from her role as leader of New York’s Reforming the Energy Vision (“REV”) initiative, she gave one final push intended to “accelerate the utility planning process” for creating the long-envisioned Distributed System Platform markets.
Continue Reading Phillips Lytle’s PSC Report from the Capital (Part 1)