Reforming the Energy Vision in New York Distributech Mega-Session

E9 Insight Comprehensive research focused on public utility commissions: Tracking new proceedings Online Database Monthly Newsletter Executive summaries and docket briefs Customized Research “Eyes” on commissions with a unique professional network © E9 Insight

E9 Insight Monthly “radar screen” of new activity across these topic areas: 1. Resource Planning (including Integrated Resources Plans) 2. Demand Side Management (including energy efficiency and demand response) 3. Distributed Energy Resources (including residential solar, net metering and storage) 4. Smart Grid (including smart meters and home area networks) 5. Distribution Infrastructure (incl. distribution automation & voltage management) 6. Community Energy and Microgrids 7. Rate Structure Reform (including residential dynamic pricing and demand charges) 8. Competitive Market Investigations 9. Electric Vehicles (and Transportation) © E9 Insight

Private Ownership Public Ownership US Electricity Sales: $359.0B annual retail sales ~$1B per day (0.98) Investor-owned: (73%) 34% integrated 25% restructured 14% retail Publicly-owned: (27%) 10% municipal 11% cooperative 5% other public power = $1B annual revenue US Electricity Market Integrated Municipal RestructuredRetail CooperativeOther © Tolerable Planet Enterprises New York

Private Ownership Public Ownership US Electricity Sales: $359.0B annual retail sales ~$1B per day (0.98) Investor-owned: (73%) 34% integrated 25% restructured 14% retail Publicly-owned: (27%) 10% municipal 11% cooperative 5% other public power = $1B annual revenue US Electricity Market Integrated Municipal RestructuredRetail CooperativeOther © Tolerable Planet Enterprises 4. New York 1. California 2. Texas 3. Florida New York FL CA TX FL CA

States (all sectors) Texas $30,816 B California $ B © Tolerable Planet Enterprises NEW YORK $21,454 B Florida $ B

States (all sectors) Texas $30,816 B California $ B © Tolerable Planet Enterprises NEW YORK $21,454 B Florida $ B California Texas30,816 Florida22,983 NEW YORK21,454 Pennsylvania13,930 Ohio 13,440 …

Deep SouthUpper SouthIntermountain WestUpper PlainsLower PlainsNew EnglandPacific RimMidwestMid-Atlantic Texas Periodic Table of State Policy © Tolerable Planet Enterprises Revenue ($B) Commissioners Large IOU’s (>$250m)

New York © E9 Insight Investor Owned Publicly Owned Total Revenue ($B) Large Utility Revenue Governor / Senate / House Commissioners Retail

New York © Tolerable Planet Enterprises Hess Corporation0.6 Constellation NewEnergy0.4 Direct Energy0.4 Consolidated Edison Solutions0.3 Suez Energy0.3 Hudson Energy Services0.3 Consolidated Edison8.1 Niagara Mohawk Power2.4 NYSEG1.0 Rochester Gas & Electric0.6 Central Hudson0.5 Orange & Rockland0.4 Long Island Power Authority3.5 New York Power Authority1.1

State Regulatory Structures NY PA NJ MD DC DE VT MA CT RI NH ME

Key Issues The issues receiving the most discussion include: Distribution System Platform Provider (DSP) DER Ownership Advanced Metering System Information Customer Data Track II: Performance-Based Metrics & Ratemaking There is a healthy spectrum of views in each topic area. © E9 Insight

Core Assumptions © E9 Insight “Addressing these challenges and opportunities involves questioning two assumptions of the traditional paradigm: (1)that there is little or no role for customers to play in addressing system needs, except in times of emergency; and (2)that the centralized generation and bulk transmission model is invariably cost effective, due to economies of scale.” Staff Report (April 2014)

Implications of REV? Components of REV will migrate to or accelerate in other states: Distribution-level planning Localized value Customer data Market access for consumer technology Is REV unique? Macro trends will continue to advance consumer technology choices… © E9 Insight

THANK YOU Cameron Brooks President, E9 Insight