51st State Perspectives | Distributed Energy Resources Integration: Policy, Technical, and Regulatory Perspectives from New York and California

A concise guide covering the complex regulatory environments of California and New York.

Written in partnership with ScottMadden Inc., the first paper in the 51st State Perspectives series, Distributed Energy Resources Integration: Policy, Technical, and Regulatory Perspectives from New York and California, is a condensed guide to thousands of pages of regulatory filings. Readers will see areas of overlap and divergence in the goals and execution of electricity system reform in each state.

Different starting points. Different end goals.

While New York and California are starting from very different places (regarding market structure and distributed energy resource ((DER)) penetration), and each has a different end goal for the future of their respective marketplaces, there are common elements between the two states’ approaches. Other states will benefit from the New York and California experiences both in areas where they are pursuing very similar tactics and in areas where they diverge. This report identifies the key similarities and differences between the two states’ paths to increase the penetration of DERs, so others may adopt and/or adapt them to facilitate their own market transformations.

To facilitate DER integration, both states are working to improve the interconnection process and expand hosting capacity analysis. They are considering the impacts of DERs to the distribution planning process and are developing processes that use DERs to offset traditional utility capital expenditures. Both states are considering how best to reform their rate structures. Also, as part of the planning process, they are considering how best to share planning and system data with third parties.

A holistic overview.

Further, the report compares the experiences of regulatory activities in New York and California along with: goals for DER integration, interconnection, hosting capacity, system planning, benefit-cost analysis, data sharing, use of demonstration projects, rate reform and utility incentives, and ISO interface.