N.Y. Staff Says "Further Development" of ConEd Bundled Value-Added Services Demonstration Project Needed, Project Not Among Those Initially Approved (ESCOs Had Called Program Anti-Competitive)

Consolidated Edison's proposed CONnectED Homes Platform, a Reforming the Energy Vision demonstration project which envisions the utility bundling and reselling value-added services to customers, was not among a set of initial demonstration projects which received approval from Staff this week.

As previously reported, under the CONnectED Homes Platform, ConEd would analyze a customer's usage to tailor unique distributed or smart energy offers to the customer. Third-party energy service vendors of smart energy services would pay a fee to be referred to appropriate customers based on these analyses and to advertise as part of the program; however, the platform also envisions certain services will be bundled and resold by ConEd itself.

For the demonstration project, ConEd has initially selected three types of services to be offered, with companies selected by ConEd outside of an RFP. The services are solar systems, to be offered by SunPower; energy efficiency audits/retrofits and energy appliance installations and repairs, offered by HomeServe USA; and an "exclusive" bundle of smart thermostat with energy savings services, offered in conjunction with Nest, including Nest seasonal savings

The demonstration project, which is proposed to last through the end of 2017, would be limited to residential customers in Brooklyn and Westchester

Retail suppliers have called the CONnectED Homes proposal anti-competitive.

PSC Staff informed ConEd that, "Staff believes that while the CONnectED Home Platform represents a potential, relevant and innovative REV demonstration project, further development is required in order to determine compliance with the Commission's Order. During the upcoming meeting, Staff will provide details regarding the basis of its assessment, and the additional information needed to complete its review. Staff will also work with the company's team to establish a mutually agreeable schedule for the submission of addendums to the project's July 1, 2015 filing."

Staff did find that another residential ConEd proposed demonstration project complies with the REV principles, allowing the plan to move forward -- ConEd's Clean Virtual Power Plant demonstration project. Under the Clean Virtual Power Plant demonstration project, SunPower, SunVerge and ConEdison will offer residential customers a resiliency service, bundling solar with energy storage. The project will test customer demand for this premium service that can keep the lights on during an outage, and will aggregate and manage the projects in a "virtual power plant" that can provide grid services during blue sky days. A future phase of this project may also test time of use pricing.