NY PSC issues Phase I Order in Value of DER

On March 9th, the NY Commission issued a Phase I Order in the Value of DER proceeding. This order commences the first phase away from net-energy metering towards a methodology to value distributed resources. The transition that this order lays out is compensation from volumetric NEM to Phase I NEM to Phase I Value Stack (with a Market Transition Credit for some projects) with a look into Phase II methodologies. The Value Stack is meant to serve as compensation for various aspects of value that DER resources bring to the grid for Energy Value, Installed Capacity Value, Environmental Value, Demand Reduction Value, and Locational System Relief Value. The compensation will be credited based on calculations of the value or proxy calculations applied to the hourly net injections onto the grid.

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