FTC Staff Reply Comment Before the State of New York Public Service Commission in the Reforming the Energy Vision Proceeding, Concerning the NY PSC Staff White Paper on Ratemaking and Utility Business Models

FTC staff submitted a comment in the New York State Public Service Commission’s (NY PSC’s) Reforming the Energy Vision (REV) proceeding regarding that agency’s “Staff White Paper on Ratemaking and Utility Business Models.” The comment suggests that the White Paper, which describes the REV’s objectives only in terms of lower prices or lower power bills, should also focus on improvements to electric system efficiency and on increases in the value that customers derive from customized electricity services. The comment encourages the NY PSC to consider concerns about potential cross-subsidization by distribution utilities and unfair competition in services that independent firms provide to DER investors, owners, and organizers. It also suggests adjustments to some of the distribution utilities’ financial incentives in order to improve customer benefits and avoid harm to competition and efficiency.