New York PSC Adopts "Core" Policies of Resource Diversity, "System Reliability"

The New York PSC yesterday announced that it, "commenced a process to transform its regulation of electric distribution utilities," and articulated "core policy outcomes" driving the proceeding.

Among the five core policy outcomes expressed by the Commission were:

• Fuel and Resource Diversity: "Successful market and regulatory design requires maintenance of fuel and resource diversity as a critical outcome. Increased use of clean and renewable generation on customer premises increases the diversity of supply. In addition, a stronger emphasis on demand response will effectively add a new type of resource. It is critical that the Commission ensures that the fuel mix remains diverse and its regulatory, market and grid systems are designed to accommodate and value this diversity."

• System Reliability and Resiliency: "Assurance of a secure, reliable and resilient electric system remains and indeed is growing in importance as a critical feature of daily lives and the development of the State's economy. The Commission's policies and practices should ensure the deployment and use of customer-based resources that support achievement of economically efficient system resiliency."

A written order from the Commission was not immediately available. However, both of the policies above present opportunities for increased state planning and direction for generation and supply. The impact on the retail market remains to be seen.