New York And The Standby Tariff: A Breakthrough For Clean, Distributed Energy

For New Yorkers wanting more clean, distributed energy, the recent Con Edison rate case offers some good news.

Presented to New York's Public Service Commission (NYPSC), which regulates utilities in the state, a rate case is a process utilities use to adjust policies and set rates charged to customers. A rate case occurs once every few years and provides an opportunity for state and local governments, along with consumer and environmental advocacy groups, to seek cleaner, cheaper, and more customer-friendly electricity.

The Con Edison rate case is considered a bellwether for similar proceedings involving electric utilities throughout New York State which is part of why a recent filing with the NYPSC is so important. Along with more than 20 other parties (including Con Edison, the Real Estate Board of New York, the New York Energy Consumers Council, and several environmental advocacy groups), Environmental Defense Fund (EDF) on September 20thfiled a joint proposal with NYPSC that (among other recommendations) calls for changes to the current standby tariff that are likely to be approved by the Commission.

The standby tariff is a special rate charged to commercial and industrial customers who produce some of their own electricity, but remain connected to the grid. It has been a significant roadblock to widespread deployment of distributed generation, such as combined heat and power (CHP) systems, because it imposes burdensome costs and complex regulations on businesses and institutions that produce some of their own electricity independently from the utility.

The joint proposal filed by EDF, Con Edison, and others presents several solutions for improving the standby tariff that will make it easier for people, businesses, and institutions to invest in clean, distributed energy resources.

Exemptions for Efficient CHPâ€
Together with the Pace Energy and Climate Center (the Pace Center), Environmental Defense Fund (EDF) called for changes to the standby tariff that favor clean, distributed generation, i.e. customer-sited power sources that emit low or zero greenhouse gases and greatly reduce nitrous oxides (NOx), which are harmful pollutants. This is an important distinction, since some distributed generation like diesel generators actually contribute to polluti...