New York State Electric & Gas Corp. and Rochester Gas & Electric Corp. have filed their 2020 Distributed System Implementation Plan, the Avangrid Inc. subsidiaries’ strategy to integrate distributed energy resources (DER) into the New York grid.
The plan outlines the framework for how the companies will support New York state energy and decarbonization goals by building integrated planning and interconnection, grid operations and market services functions.
“The electric power industry is in the midst of unprecedented change, enabled by innovation and advances in emerging clean energy, power delivery, and information technologies,” said Rita King, senior director of Smart Grids Innovation and Planning at Avangrid. “The DSIP provides an actionable roadmap for our companies to support the decarbonization of New York’s economy, including the electrification of transportation and buildings, and will enable the integration of greater amounts of DER within our service areas. Our approach is customer-centric, clean, integrated and smart.”
The five-year implementation plan involves investments in several key areas, including grid automation, energy storage, electric vehicles (EV), smart meter (advanced metering infrastructure) implementation and market services.
Within those areas, the utilities plan to:
• Make significant progress in implementing a long-term grid automation program to improve the responsiveness, reliability, and efficiency of the distribution system. Investments will be made in grid devices that measure, monitor and control electric power flows along the network;
• Proactively support the identification and development of energy storage projects that benefit customers and the grid and are attractive to developers;
• Support the development of the EV market within its service territories through continued development of capabilities, including integrating EV load while minimizing the impact on peak demand, supporting EV growth with sufficient charging infrastructure while understanding impact and needs on the system. As part of the recent rate case settlement filing, the companies proposed and are preparing to implement a comprehensive EV Program that would accelerate EV adoption throughout its service territories;
• Deploy smart meters, planned to begin in the spring of 2022, after approval of the recent rate case settlement filing. Smart meters will help customers manage their energy usage, and support time-varying pricing and innovative rate structures; and
• Develop an online marketplace. The platform will empower customers to make better energy management decisions by connecting them to pricing options and programs, as well as to products and services offered by competitive suppliers.
In June, after months of negotiations, NYSEG and RG&E agreed to a slate of gas reduction strategies, retracted $128 million for gas infrastructure including pipelines and funded $1.5 million for renewable heating systems for low-income residents.
As part of the settlement agreement on the gas case, filed on June 22, environmental groups secured utility commitments to plan their systems around no growth in gas use and to offset new customers’ gas use through energy efficiency, heat pumps, and other non-gas alternatives. The companies also plan to study and possibly implement district geothermal pilots. The companies further agreed to end their oil-to-gas conversion incentives in favor of approximately $1.5 million for low-income renewable heating rebates.
“We celebrate the efforts of all the groups that worked together to achieve these precedent-setting concessions in the gas rate cases,” said Jessica Azulay, executive director of Alliance for a Green Economy. “Most of the organizations who worked together to win this agreement had never been involved in a rate case before, but together we successfully went toe-to-toe with a multi-billion-dollar multinational corporation to advance our renewable energy transition.”
As part of the settlement, RG&E average residential bills will rise over the next three years to $100 more per year than before the rate case started, based on an increase of 15.5 percent in delivery rates, environmental organization officials noted.
“The transition to a clean energy future must be affordable for all New Yorkers to be sustainable,” said Kristen Van Hooreweghe, project manager for Rochester People’s Climate Coalition. “The gas case settlement, even with its environmental initiatives, has nominal rate increases. Conversely, the companies and Gov. Cuomo’s Department of Public Service failed to develop a rate plan on the electric case that adequately addresses the disproportionate energy burden facing our low-income community members, especially during the current COVID pandemic.”
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