BILL NUMBER: S9500
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the public service law, in relation to establishing the
New York State grid reliability and energy affordability transition act
 
PURPOSE:
To generate customer utility savings and emissions reductions through
the establishment of a virtual power plant program in New York State
 
SUMMARY OF PROVISIONS:
Sec. 1 - Short title: "New York State grid reliability and energy
affordability transition act" or "GREAT Act"
Sec. 2 - Legislative findings and intent
Sec. 3 - Amends the public service law by adding a new article 12
241 - Establishes a Virtual Power Plant Program, and provides that each
utility shall file with the commission a virtual power plant program
proposal including standard terms and conditions for participation and
compensation in accordance with the requirements of this act. Sets addi-
tional terms and conditions for the virtual power plant program.
242 - Cost recovery. Provides that utilities may recover costs to facil-
itate the program. Utilities may recover the cost of performance
payments. The commission may allow a reasonable rate of return on the
costs approved under this chapter.
243 - Program targets & performance incentive mechanisms. Directs the
commission to initiate a proceeding to develop program performance
targets and incentive mechanisms, including: (a) a system peak reduction
service; (b) financial rewards and may include financial penalties; (c)
additional targets and performance incentives for additional grid
services.
244 - Reporting. Provides that each utility shall file an annual report
each year which shall include total capacity enrolled in each program
rider, broken out by technology type, customer class, aggregator &
direct participation status for each grid service and recommendations to
increase participation in the program.
Sec. 4 - Effective date.
 
JUSTIFICATION:
New Yorkers face rising energy costs and grid reliability risks driven
by extreme weather, aging infrastructure, and use of expensive, pollut-
ing fossil fuel plants to meet peak demand.
A "virtual" or distributed power plant is a coordinated network of
customer-owned resources like batteries, electric vehicles, and smart
thermostats working together as a reliable power source. During periods
of peak demand for electricity, distributed power plants can lessen
demand, supply electricity, and provide other essential grid services,
preventing blackouts and reducing the need for costly upgrades to utili-
ty infrastructure.
Distributed power plants can also reduce emissions of greenhouse gases
and other air pollutants, especially from aging "pecker plants" in
disadvantaged communities. Distributed power plants also pay participat-
ing families and businesses for supporting the grid, enabling and
encouraging them to invest in distributed energy resources and reduce
their net energy costs. This can help the state meet its goals for equi-
ty, renewable energy, and energy storage. The United States Department
of Energy estimates that the United States could deploy 80-160 gigawatts
of distributed power plants by 2030 (a tripling of current levels) to
support the rapid electrification of vehicles and homes and provide on
the order of $10 billion in ratepayer savings annually. In New York
State, current market rules, complex program structures, and inadequate
compensation to participating customers are preventing our state from
fully using distributed power plants, leaving a huge potential source of
grid reliability and ratepayer savings untapped, There are significant
barriers to deployment and operation of distributed power plants in New
York, including New York Independent System Operator rules that do not
allow distributed energy resources of less than 10 kw to participate in
the wholesale market as part of a resource aggregation. Existing utility
programs are complex, offer minimal compensation to customers and have
not attracted substantial customer participation. To unlock the grid,
ratepayer, and customer benefits that residential battery storage and
other distributed energy resources can provide, our state must establish
new opportunities for customers to participate in utility-administered
grid support programs.
This bill directs the establishment of a community power plant program
in New York State, to leverage the expertise of private, non-utility
entities to advance innovation and implement cost-effective clean energy
solutions that deliver energy affordability.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
TBD,
 
LOCAL FISCAL IMPLICATIONS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect immediately.