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Staff White Paper on Benefit-Cost Analysis in the Reforming the Energy Vision Proceeding

Valuation, Analysis, BCA   
New York   
New York PSC Case 14-M-0101. In its Order Adopting Regulatory Policy Framework and Implementation Plan, the Public Service Commission directed Department of Public Service Staff to develop and issue a Benefit-Cost Analysis White Paper describing a framework for considering utility proposals within the Reforming the Energy Vision (REV) proceeding and related proceedings. An underlying objective of this White Paper is to facilitate a dialogue among parties addressing the components and application of a BCA in the context of REV. The Framework proposed herein is intended to address the marginal costs and benefits of Distributed Energy Resource versus traditional utility investments and expenditures to be proposed in near term Distributed System Implementation Plans (DSIPs) and tariff development. At the same time, other REV initiatives endeavor to reform traditional utility decision-making by modifying ratemaking and utility incentives to grow markets and improve system efficiencies. This Framework, and utility applied BCAs, should also adapt and evolve to reflect new market structures, products, and services as they develop.