New York PSC Staff have released a white paper regarding utility ratemaking design and distributed energy compensation under the REV proceeding.

Click here for the white paper

While the white paper places greater emphasis on principles rather than specific policy recommendations, one specific recommendation is development of a "smart home rate."

"One option for a more sophisticated mass-market rate is a smart home rate, in which granular price signals are unbundled to reflect costs associated with underlying dimensions of electricity delivery, including commodity energy, delivery costs, and possibly certain ancillary services, and have significantly more temporal granularity. A well-constructed smart home rate would provide a technology agnostic rate mechanism to incentivize greater system efficiency through behind-the-meter management. Through direct management by customers, automated controls by on-site DER, or possibly supported by third-party intermediaries, customer loads could respond to day-ahead or other price signal. On an opt-in basis, a smart home rate would allow interested customers and service providers to develop more advanced in-home energy management systems," Staff's white paper said.

Staff's white paper also recommended that utilities should propose demonstration projects focused on Time of Use (TOU) rate design. This recommendation was not explicitly limited to non-supply rates.