21st Century Electricity System

21st Century Electricity System (21st CES)

AEE is helping to accelerate the transition to a high-performing electricity system in the United States by convening CEOs, Executives, and policymakers together in targeted states to develop and take action on new business models for utility regulation. Seven CEO Forums were held from 2013 through 2015 in this multi-year effort in Cambridge, MA; San Antonio, TX; Aspen, CO; New York, NY, Boston, MA (to represent CT/RI/MA), Novi, MI; and San Francisco, CA.

Caption: Companies that Attended the CA 21st CES CEO Forum - California ISO, ChargePoint, EnerNOC, Ford Motor Company, GE Power & Water Digital, General Catalyst Partners, Gridco Systems, Itron, Microsoft, Morgan Lewis, Navigant, Nest Labs, Pacific Gas & Electric, Recurrent Energy, RES Americas, San Diego Gas & Electric, Siemens, Smart Wires, SolarCity, Southern California Edison, Sovereign Energy Storage, Stem, SunEdison, SunPower

Learn more about our 21st CES CEO Forums >

AEE is also facilitating more detailed discussions in specific states to provide leadership and input to policymakers on electric utility industry changes required to support a viable utility business model that allows a high degree of distributed assets (e.g., distributed generation, energy storage, micro grids), smart grid technologies, demand response, energy efficiency, and other related customer behavioral changes, to optimize the costs and maximize the benefits of meeting energy and environmental policy objectives.

Learn more about our 21st CES state policy objectives >

21st CES CEO Forums

AEE is helping to accelerate the transition to a high-performing electricity system in the United States by convening CEOs, Executives, and policymakers together in targeted states to develop and take action on new business models for utility regulation.

Seven CEO Forums were held from 2013 through 2015 in this multi-year effort in Cambridge, MA; San Antonio, TX; Aspen, CO; New York, NY, Boston, MA (to represent CT/RI/MA), Novi, MI; and San Francisco, CA. Attendees to date for these invitation-only events have included CEOs/executives from: SCE, ConEd, SDG&E, PG&E, Detroit Edison, National Grid, PSEG, Northeast Utilities, NYPA, APS, CPS Energy, NRG Energy, NextEra Energy Resources, ERCOT, California ISO, Nest Labs, SunEdison, SunPower, Siemens, Itron, Navigant, Silver Spring Network, Gridco Systems, Landis+Gyr, Opower, First Solar, Stem, EnerNOC, RES-Americas, Recurrent Energy, Intel, Microsoft, GE, Verizon, Ford, and others.

The first five forums were held in conjunction with MIT’s Industrial Performance Center. Later in 2015, AEE will host a CEO Forum in the northeast and we are planning another forum in Pennsylvania that will take place in early 2016.

The overarching theme that has emerged is that of utility business and regulatory model changes necessary to accelerate innovation and advanced energy deployment to meet the multiple challenges facing the industry.

View and download our CEO Forum summaries>

21st CES State Policy Engagement

AEE is facilitating more detailed discussions in specific states to provide leadership and input to policymakers on electric utility industry changes required to support a viable utility business model that allows a high degree of distributed assets (e.g., distributed generation, energy storage, micro grids), smart grid technologies, demand response, energy efficiency, and other related customer behavioral changes, to optimize the costs and maximize the benefits of meeting energy and environmental policy objectives. These policy objectives include, but are not limited to, continuing to provide reliable energy services; supporting economic growth; increasing resiliency; providing services to all customers in a fair, affordable and sustainable manner; reducing greenhouse gas emissions; helping customers to manage their energy costs; and adapting to climate change.

The AEE team:

  • Is actively involved and has filed formal comments to the Reforming the Energy Vision (REV) proceeding in NY. Many of the key elements in the Track 1 Order were in alignment with AEE’s formal comments that were filed jointly with our partners Alliance for Clean Energy in New York (ACE-NY) and the New England Clean Energy Council (NECEC).
  • Facilitated a San Antonio Smart Cities Innovation Forum to support CPS Energy in the implementation of some of these new business model concepts and technologies.
  • Has developed a position paper on what needs to be done to the electricity system to achieve the various State of California policy objectives. The emphasis is on regulatory and business model changes needed to facilitate the transition to a low-carbon, customer-focused, efficient, reliable and resilient grid in California.

NY Reforming the Energy Vision (REV)

REV Track One Order Summary and Alignment with AEEI/ACENY/NECEC Position

Advanced Energy Economy Institute (AEEI), the Alliance for Clean Energy New York (ACENY), and the New England Clean Energy Council (NECEC) have been filing joint comments with the New York Department of Public Service (DPS) in the Reforming the Energy Vision (REV) Proceeding. Click the following link to view a high-level summary and comparison of those joint comments and the substance of the Track One Order, issued February 26, 2015. The complete Track One Order and the detailed filings of AEEI/ACENY/NECEC can be found on AEE's DocketDash.

View joint comments document >

Comment Letter on the NY Reforming the Energy Vision Straw Proposal

Comments submitted by the Advanced Energy Economy Institute on the straw proposal from the staff of the New York Public Service Commission, in its "Reforming the Energy Vision" proceeding, for reorienting the state's utility regulatory process to unlock the value of advanced energy to meet state policy objectives and empower customers to make informed choices on energy use.

View comment letter >

Position paper on creating a 21st Century Electricity System for NY

The electricity industry is in the midst of dynamic change, with many of the underlying assumptions that have shaped it for decades in transition. This document summarizes the collective thinking of an informal Working Group (WG) that was formed to provide input to New York State policymakers, regulators and other stakeholders on potential changes to the electric utility industry that:

  • Better align the state’s utility regulatory framework with the state’s energy, environmental, and economic policy objectives
  • Successfully address the underlying technology and market forces shaping the “Utility of the Future"

The WG process was facilitated by Advanced Energy Economy (AEE) personnel over a three month period prior to the opening of the REV proceeding.

Download “Creating a 21st Century Electricity System for New York State” >

Request for Information - Issued March 10, 2015

Regulatory and Ratemaking Models to Support a 21st Century Electricity System in New York State

With this RFI, AEEI is seeking to identify companies that would be able to support our continued involvement in the REV proceeding. In particular, “Track 2” of REV will be getting underway in Q2 2015 when the NY Department of Public Service (NY DPS) releases a Straw Proposal. We anticipate needing some expert support during this phase of the proceeding. Specifically, Track 2 is addressing the detailed regulatory changes needed to implement REV. This includes performance-based regulation, tariff designs and other revenue models, and rate plans.

Responses to this RFI are due on April 15, 2015.

Download the RFI to learn more >

Toward a 21st CES for CA

On February 25, 2015, Advanced Energy Economy Institute hosted a meeting of senior executives from advanced energy companies and California’s investor-owned utilities (IOUs). The California 21st Century Electricity System CEO Forum was an opportunity for energy industry leaders to discuss the drivers of industry change and to start to examine utility business models and regulatory concepts that can adapt to and thrive in the emerging energy market environment. Out of that meeting came a desire by the participants to advance the ideas and concepts discussed. Toward a 21st Century Electricity System for California summarizes that effort. Produced by a working group that included representatives of IOUs, California Independent System Operator, and more than a dozen advanced energy companies active in California, this position paper presents a broad vision of how stakeholders in California can work together in a more integrated fashion to achieve the state’s ambitious and important energy and environmental policy objectives.

Download the Position Paper

On August 13, a group of those involved in the writing of this paper presented the findings at a Thought Leaders forum at the California Public Utilities Commission.

Download the presentation >

Benefit-Cost Analysis for Distributed Energy Resources - report

Utility regulators need a new framework for benefit-cost analysis to accurately assess the value of distributed energy resources like energy efficiency, demand response, distributed generation (such as rooftop solar), and energy storage, according to a report submitted to New York's Public Service Commission (PSC) as part of its "Reforming the Energy Vision" regulatory proceeding.

The benefit-cost paper, produced by Synapse Energy Economics, a consulting firm based in Cambridge, Mass., was submitted to the PSC in a filing made by the Advanced Energy Economy Institute (AEEI), a nonprofit charitable organization affiliated with the Advanced Energy Economy (AEE) business association, along with its state and regional partner organizations Alliance for Clean Energy New York (ACE NY) and New England Clean Energy Council (NECEC), all of them active participants in the path-breaking proceeding to reform electric utility business and regulatory models launched in April by the PSC.

According to the Synapse paper commissioned by AEEI, the benefit-cost analysis techniques traditionally used to evaluate energy efficiency resources in New York State and many other states around the country are increasingly seen, by the PSC and other utility regulators around the country, as too narrow, overlooking benefits important for meeting state energy goals. Synapse draws on new thinking by energy efficiency experts to propose innovative screening mechanisms to determine whether various distributed energy resources (DER) deserve ratepayer-funded support to meet electric power system, economic, and societal objectives.

Smart City Innovation Forum

On November 6th, 2014, Advanced Energy Economy Institute (AEEI) and CPS Energy co-hosted a Smart City Innovation Forum in San Antonio, TX. The desired outcome of the Forum was to make recommendations for CPS Energy as they develop a pathway to innovation and enhanced services for their customers. CPS Energy's Vision 2020 "transitions CPS energy from a company that is highly dependent on power from traditional generation sources to a company that provides competitively priced power based on a diverse generation portfolio" enabled by the evolution of the electric grid into a dynamic network.

To support the transition toward this vision, forum participants, predominantly advanced energy providers, discussed the opportunities for San Antonio's growth as a leader in smart city innovation through the framework of the following questions:

  • How is your company taking advantage of technology and business models to move toward Smart Cities?
  • What is your Vision for a Smart City by 2020, 2025? What are the key challenges that have to be addressed?
  • What can be done to help address these challenges e.g. partnerships, policy, and/or financing?

Participants included: AT&T, City of San Antonio, CLEAResult, Conservation Services Group, CPS Energy, Duke Energy, EnerNOC, FirstFuel Software, Gridco Systems, Landis + Gyr, Leidos Engineering, Microsoft, Nest Labs, Omnetrics Group, Philips, Rackspace, Silver Spring Networks, Veolia, Verizon, Walmart, and Younicos