Lessons from REV Demos in New York’s Energy System...•Include partnership between utility and third party service providers. • Utility should identify questions it hopes to answer

REV CONNECTREV CONNECT

Lessons from REV Demos in New York’s Energy System

January 17, 2018


Webinar hosted by REV Connect

• Brings companies and New York’s electric utilities together to accelerate innovation, adopt new business models and technologies, and advance New York State’s Reforming the Energy Vision (REV) goals.

• Helps companies that offer distributed energy and smart grid solutions connect with utilities to develop high quality REV demonstrations and other innovative projects.

• Shares good practices and convenes market participants to enhance the culture of innovation and collaboration in the energy sector.

Value to Customer

Value to UtilityValue to Market Partner


Housekeeping

• Participant microphones will be muted throughout the presentation.

• Participants can submit questions throughout the presentation by using the GotoWebinarcontrol panel.

• Presenters will address submitted questions during the Q&A session.


Agenda

1. Principles for REV Demonstration Projects

2. NYS Utilities – Lessons from REV Demos and 2018 Priorities

3. Q&A


Introductions

Fouad DagherDirector of Solution Development, National Grid

Laura ButlerDirector of Digital Customer Experience, Central Hudson

Margarett JollyDirector of Demonstration Projects –Customer Energy Solutions, Con Ed

Marco PadulaDeputy Director of Market Structure, NYS Department ofPublic Service

Drury MackenzieManager of Smart Grid Innovation Programs,NYSEG and RG&E

Vanessa UlmerSenior Project Manager

Dan BradleyDirector-in-Charge


Principles for REV Demonstration Projects


REV Demo Projects support New York’s energy strategy

• Reforming the Energy Vision (REV) is Governor Andrew M. Cuomo’s strategy to build a cleaner, more resilient, and affordable energy system for all New Yorkers.

• REV is driving New York's six investor-owned utilities to work with energy innovators to lower costs, test advanced technologies, and design new replicable business models through REV Demonstration (REV Demo) Projects.

• REV Demos aim to drive innovative, scalable, and replicable solutions for the benefit of energy customers and utility shareholders.


Principles for REV Demo Projects

• Include partnership between utility and third party service providers. • Utility should identify questions it hopes to answer or problems or situations on the grid and the market should

respond with solutions. • Delineate how the generated economic value is divided between the customer, utility, and third party service

provider(s).• The market for grid services should be competitive; utility ownership of DER only under specific exceptions.• While some demonstrations may be bilateral, utilities and service provider should test and propose rules that will

help create subsequently competitive markets.• Inform pricing and rate design modifications.• Deploy advanced distribution system to enable Distributed System Platform (DSP).• Explore opportunities to work with various residential and commercial (C&I) customers.

The NYS Public Service Commission outlined the following principles for REV Demos:

https://nyrevconnect.com/rev-briefings/principles-rev-demonstrations/


REV Demo Project development

• REV Demo Projects are intended as utility initiatives and therefore the utility is free to select the types of projects it wants to pursue.

• Commission expectation of ongoing development of REV Demo Projects after the initial filing date of July 1, 2015, as the implementation of REV continues.

• NYSDPS process includes Approval Letter, Assessment Report, and Implementation Plan.

• Each utility has a dedicated REV Demo Project team to develop and implement projects.

• Regular meetings with NYSDPS Staff to review progress and challenges and to discuss new project ideas that are in the pipeline.

• Quarterly status reports filed with the Commission to track progress and direction.


Customer Engagement Modifying Grid Operations Community / LMI Engagement Battery Storage

CenHub Marketplace

CONnectED Homes Platform

O&R Residential Customer Marketplace

RG&E Energy Marketplace

Con Ed Building Efficiency Marketplace

Smart Home Rates (NYSEG/RGE/CENHUD)

Smart Home Rates (CONED/ORU)

Clean Virtual Power Plant(on hold)

Buffalo Niagara Medical Campus Distributed System

Platform Engagement

Resiliency Demonstration in Potsdam

Flexible Interconnect Capacity Solution

NGRID DG Interconnection

ORU Hosting Capacity

Fruit Belt Neighborhood Solar

Demand Reduction Demonstration in Clifton Park

Community Energy Coordination

Con Ed LMI

NGRID Smart Cities Schenectady

Con Ed Commercial Battery Storage

Con Ed Storage on Demand

O&R Storage / PV

RGE FOM Storage

RGE EV Charging

NYSEG FOM Storage

NYSEG BTM Storage

Con Ed EV Charging

Categories of current REV Demo Projects(Projects in italics are in the development pipeline)


Have an idea for a REV Demo Project?

• New York is seeking REV Demo Projects on an ongoing basis.

• If you have a product, service, or business model that can create and share added value among customers, third parties, and utilities, submit an idea to REV Connect.

• Submissions will be assessed and shared with the six investor-owned utilities and the New York State energy agencies' team supporting the exploration of REV Demo Projects.

• Expert guidance, feedback and facilitation will be offered; ultimately, matching ideas with customers, communities, and utilities.

Value to Customer

Value to UtilityValue to Market Partner

https://nyrevconnect.com/submit-an-idea/


NYS Utilities Share Lessons from REV Demos and 2018 Priorities

% of Residential CustomersHeating with Natural Gas or Electricity

Heating Saturation

Flat Peak Demand Forecast2016 Peak Demand

% of Residential Customers withCentral Air Conditioning

Central AC Penetration

Electric Customers

256,000 Residential

302,000 Total

Natural Gas Customers

68,500 Residential

80,000 Total

1,088 MWCarbon Impact% of Carbon Emissions Associatedwith Electricity & Natural Gas Usage

Point of Sale

Outcomes: CentralHudson.com Traffic Trends from 2015 to 2017

Users

98%Pageviews

192%Session Duration

16%Bounce Rate

3.6%

• 45% of Our Residential Customers Have a CenHub Account

• 7% Home Profile Completion Rate

• 20% Open Rate

• 2.3% Ecomm Conversion Rate

Areas of Interest for Future Demos

Deliver Information in New and Novel Ways

Beneficial Electrification• EV Adoption• Geothermal

Increase Options Through Market Engagement• ESCO’s• Solar Providers/CDG


Con Edison

January 17, 2018

AGENDA

• REV Demonstration Project Portfolio Update– Connected Homes– Building Efficiency Marketplace– Smart Home– Gas Peak Demand – New– New Energy Solutions for Low-Income Customers– Battery Storage Configurations– Electrification of Transportation

CECONY DEMONSTRATION PROJECTS

Connected HomesProject Description

Targeted offers for high value DERs (e.g. home services and solar)

DER products on Con Edison Marketplace (e.g. appliances & electronics)

Pathways for customers to purchase DER solutions

Customers learn about DER offers through multiple channels

Home Energy Reports Online marketplace Marketing Campaigns

Rev

enue

from

Adv

ertis

ing

and

sale

s to

Con

Edi

son

Rev

enue

from

DER

sal

es/le

ads

to C

on E

diso

n


Building Efficiency MarketplaceProject Description

CECONY DEMONSTRATION PROJECTS Connected Homes and Building Efficiency Marketplace

Connected Homes• Targeted Offerings (HER)

– Message is key: “trending, comfort, smart” double click-through rates, as opposed to “bill savings, efficiency, andcontrol”

– Customers receiving print + digital far more likely to become a lead than print only– More single-family homeowners and high income customers engage

• Marketplace– 65% traffic through mobile devices– Broad age group – highest among 35-44– Busiest shopping hrs 7 – 10 am– More male than female shoppers– Facebook and Display Ads drive awareness. Email, paid search and ConEd.com drive conversion rates/sales

Building Efficiency Marketplace

– Best method to target commercial customers has been “High-Touch” outreach– Virtual Energy Assessments are accurate but can be refined to be even more effective– High Touch Outreach has provided new customer insights– Refining technology offerings

Lessons Learned

CECONY AND O&R DEMONSTRATION PROJECT

Smart Home Rate Project Description (includes O&R)

The Market OpportunityRate Design

Current bundled rates, assessed mainly on an undifferentiated,

volumetric basis, limit the potential of market based solutions to achieve

greater system efficiency

TechnologyThe platform needed for

communicating complex, dynamic price signals and enabling seamless, price responsive automation of loads

does not yet exist

MarketUtilities and technology providers

lack the evidence to fully characterize the value proposition

of potential solutions

Project: Bring smart pricing & smart home technology together in pilot setting

Collect empirical data on customers’ responses, willingness to use

technologies, and level of satisfaction with their experience

Introduce participating customers to automated energy management

technologies that will interact with sophisticated price signals from the utility and enhance the efficiency of

their home energy footprint

Test new pricing structures reflecting cost drivers and temporal and

locational granularity for various unbundled system cost components


Gas Peak Demand Management

• RFI Q2 2018

• Business models solutions with commercially proven technologies– E.g. Air and ground source HP– REV Connect team can provide feedback in advance of RFI

• Non-Pipes Solutions – RFP out

• DR programs under development

• Existing EE programs will be expanded

Status


Solutions for Low & Moderate Income CustomersProject Description


Solutions for Low & Moderate Income Customers

RFI Results

• Cross functional internal stakeholders and external consultants evaluated and selected project finalists

• Answered 115 questions from 13 distinct organizations

• Received 33 proposals

• 96 organizations participated in first round of the RFI process

• Almost every proposal submitted was a “hybrid”

• The number of proposals received, by primary focus area: ‒ Energy Efficiency – 12 ‒ Financing and Billing Innovations – 4‒ Distributed Energy Resources (DER) – 10 ‒ Education and Outreach – 6

Status and Lessons Learned

3 Finalists• Customer Centered EE through high-touch messaging• Aggregated Portfolio Savings – Third party financing paid through ‘pay for success’• Shared solar subscriptions at NYCHA


Commercial Storage – Contracting Stage


Storage On Demand – Contracting Stage


Clean Virtual Power PlantProject Description


Clean Virtual Power Plant

• Project temporarily suspended Q1 2017

• Permitting of residential battery storage by FDNY and NYC Department of Buildings proved more difficult than anticipated

• Contract with market partner (Sun Power) terminated

• Con Edison continues to work with both FDNY and DOB to create a clear path to residential battery system permitting

• Con Edison remains committed to the project and is evaluating opportunities to deliver the program under new agreements



Electrification of Transportation

• Encouraging charging that increases electric passenger miles traveled and putsdownward pressure on rates

Project Description

Focus Areas Objectives

• Network planning & design

• Curbside charging for 40% of NYers who park onthe street

• Quick charger hubs

• E-bus charging for the MTA

• Smart home charging

• Electric school buses that would function assummertime grid batteries

• Increase EV adoption – ConEd can take actionsthat encourage its customers to use electricvehicles

• Catalyze Private investment – The companyseeks private partners that will co-invest in EVprojects

• Build internal capacity to cite charginginfrastructure at the lowest possible system cost

• Identify a wide range of ideas – uniquetransportation profile and nascent market meanutility actions could be wide ranging. Thecompany wants ideas that span charginginfrastructure, fleet investment, and marketing.


Electrification of Transportation

• Interviewed two dozen stakeholders: auto makers, charging providers, startups, environmental groups, drivers

• Created a total cost of ownership analysis of NYC EVs based on vehicle type and usage

• Persuaded City of New York to consider curbside charging, a major policy milestone

• Released Request for Information (RFI) in April. Cross promoted RFI with City of New York and Sierra Club during Earth Week.

• Leveraged media outlets GreenBiz, Politico, and ChargedEVs to generate industry interest

• RFI response finalists currently being interviewed


HERE WITH YOU. HERE FOR YOU.

Fouad Dagher – Director of Solution Development, New Energy Solutions, National Grid

REV Demonstration Projects – Lessons Learned and Future Outlook

Agenda

• Existing REV Demonstrations

• Future Priorities

• Partnership Opportunities

E x i s t i n g R E V D e m o s : E l e c t r i c & G a s S y s t e m s

Electric:Distributed System

Platform (DSP)

Clifton Park Smart Homes

Potsdam CommunityResilience Microgrid

Fruit Belt Community Solar

Gas:Geothermal Heat Pump

Micro CombinedHeat & Power

Commercial GasDemand Response

Flood Zone Protection Package

D e m o C a s e S t u d y : F r u i t B e l t C o m m u n i t y S o l a r

F u t u r e P r i o r i t i e s : P r o g r a m s & C u s t o m e r S e g m e n t s

Innovative Energy Efficiency

Low-Moderate Income Customers

Electrification

Small-MediumBusiness Customers

Future Priorities: Programmatic

Electric Vehicles

Innovative Energy Efficiency

Future Priorities: Customer Opportunities & Grid Efficiency

In Particular:

Low-Moderate Income Customers

& Small-Medium

Business Customers

www.avangrid.com

Avangrid Networks


January 17, 2018

https://www.iberdrola.es/


www.avangrid.com

REV Demo Update: - Flexible Interconnect Capacity Solution (FICS)- Lessons Learned

REV Innovation: - Energy Smart Community Approach- 2017 Foundational Platform- 2018 Opportunities of Focus

REV Connect Demo and Innovation Update




www.avangrid.com

• Tests a new model forinterconnecting DERs usingActive Network Managementrather than firm capacity

• Allows the utility to manageDERs within grid constraintsusing real-time sensing andcontrols, avoiding otherwiserequired more expensiveinterconnection upgrades


Flexible Interconnect Capacity Solution (FICS) Overview

HypothesisBy providing DER developers the option of avoiding significant upfront

interconnection costs by paying a lower fee and being subject to criteria based curtailments during constrained periods (thermal and/or voltage constraints) of the distribution system will increase the deployment rate

and density of DERs



www.avangrid.com

• Initial FICS scope targeted two proposed DERs in NYSEG service territory1. 2 MW solar photovoltaic: Project is on hold pending environmental

assessment, anticipate operational with FICS in Q2 20182. 450 kW farm waste digester: NYSEG offered multiple FICS options

to address interconnection upgrades. Dropped from theinterconnection queue in Q4 2017; may re-enter

• Screening for applying FICS to additional projects in the interconnectionqueue continues

• Developing integrated interconnection proof of concept between SmarterGrid Solutions, Clean Power Research, and CYME to integrateinterconnection planning and analysis with FICS as a business-as-usualprocess


FlCS – Progress to Date



www.avangrid.com REV Connect Demo and Innovation Update

FlCS – Observations and Lessons Learned to date

• Interconnection requests being cancelled requires an updatedanalysis of any requests falling later in the queue.

• Some developers preferred to wait and see whether projectsahead of them in the queue actually got built.

• Some interconnection requests were cancelled due to the inabilityto acquire land rights.

• Some projects were delayed due to the developer's permittingissues.

• Other projects were approved and being implemented withtraditional grid reinforcements.

• Integrating energy storage with active network management ofDER looks promising to reduce curtailment and to increase system efficiency.




Energy Smart Community – Test Bed for Innovation




ESC Foundational Platform – Deployed 2017

Customer & Market: NYSEG Smart Solutions online store launched Energy Manager (AMI Data) January 2018 Pilot Time of Use Rate proposal submitted and pending approval Completion of Customer Segmentation Model & Engagement Strategy

Grid Operations (AMI and Automation): 97% of single phase and gas AMI meters installed (~19,000 meters) Completed Automation of Substations and Line Devices Advanced Distribution Management System (ADMS) functional in 2018

Integrated Systems Planning: DER Hosting Capacity Portal Initial DER & Load Forecasting




ESC Innovation – Opportunities of Focus in 2018

• Energy Storage

• Smart Home Rate demo focused on EVcharging in collaboration with Cornell

• Multi-Value DR and Aggregation

• We welcome ideas that create valuefor our customers and network




Call to Action


What can REV Connect do for market players?

• Browse the Utility Marketplace in One PlaceResearch REV-related opportunities for all New York State investor-owned utilities through a single portal.

• Access Deep REV ExpertiseBecome more informed about REV and see how your solution best fits REV goals.

• Receive Coaching for Success to Refine REV Value PropositionRefine your solution’s REV value proposition to make a stronger case to prospective customers and partners.

• Put Your Best Foot Forward and Present Utilities with Vetted ConceptsPresent fully-vetted concepts that have been evaluated against transparent criteria and refined with expert input.

• Take Advantage of a New Utility Outreach ChannelShowcase your solutions to a wider utility audience.

• Co-Create New Business Models

For market players, REV Connect offers efficient access to opportunities as well as coaching and facilitation to drive to partnerships with investor-owned utilities in New York State.


Meet the people on the REV Connect facilitation team

Get started today!

Take action and submit your idea.• What happens next? If your submission meets the minimum requirements, you will be invited to have a

qualification consultation with a member of the REV Connect team. You will receive initial feedback and we willsummarize your idea to the New York State investor-owned utilities and New York State energy-related agenciesand authorities*

• Can I make more than one submission? Yes! There is no limit on the number of submissions a single companyor individual can make. Each idea or business model concept should be submitted separately.

• Is it possible to work with REV Connect to modify an application after its submission?Yes, our REV Connect team will work with you to refine your idea after it has been submitted.

• What happens if I don’t meet criteria for facilitation or no utility is interested? For any idea submitted to REVConnect, regardless of how far it proceeds in our process, we will provide feedback on how the idea can beimproved

Visit the REV Connect portal to review materialsSubscribe for updates from REV Connect Contact us with any questions and read up on our FAQs

• This includes the Public Service Commission/Department of Public Service, NYSERDA, the Office of the Governor,the New York Power Authority, Long Island Power Authority (LIPA), and PSEG – Long Island as a contractor to LIPA.

https://nyrevconnect.com/submit/

https://nyrevconnect.com/idea-criteria/

https://nyrevconnect.com/

https://nyrevconnect.com/subscribe/

https://nyrevconnect.com/contact/

https://nyrevconnect.com/about-rev-connect/frequently-asked-questions/


Q&A


Thank you!

Documents

Lessons from REV Demos in New York’s Energy System...•Include partnership between utility and third party service providers. • Utility should identify questions it hopes to answer