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What is regulatory innovation?

PA's David Cherney, energy and utilities expert, is quoted in an article in Greentech Media. The article discusses key takeaways from a recent PA whitepaper that offers insight on regulatory innovation in New York and California.

Commenting on this further, David states: Utilities should first define where they want to go and how they want to get there. But then they should assess the high and low bounds of a diverse range of forecasts.

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The article concludes by providing the following three near-term applications to help utilities engage in far-reaching thinking from PA's recent whitepaper, which is entitled "Regulatory foresight and the Next Generation Utility":

  • Cutting-edge non-wires alternatives, such as Con Edison’s Brooklyn-Queens Demand Management project, can be a good way for utilities to implement new technology and build new relationships with customers across different classes. At the same time, it can breed a symbiotic relationship between regulators and utilities. Non-wires alternatives can also help inform new business models.
  • Community solar is another promising area. Utilities already manage more than 110 community solar projects across 26 states. By working with regulators, utilities can ensure the right project design is in place to bring community solar to areas where it benefits both customers and the utility. The lessons learned through community solar projects can inform future distributed energy projects. 
  • Energy efficiency is also poised for transformation. Whether pay-for-performance efficiency programs or more segmented and tailored demand response offerings through a marketplace, energy efficiency is one area with many options for innovation without major regulatory rule changes.


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