We recently submitted reply comments to the New York State Public Service Commission on Benefit Cost Analysis Handbooks submitted to the Commission by utility companies, within the Reforming the Energy Vision proceeding. Benefit-cost analysis will assist in determining the best resource allocations between traditional utility distribution grid investments and distributed energy resources (DER), by allowing for direct comparison. These Handbooks will help ensure that the utilities’ benefit-cost analyses will help to select investment options that will maximize net benefits to the public.
Our comments explain that it is important for the Handbooks to properly account for all externalities in their calculations, to be technology neutral and include the full range of types of DER, and to be subject to independent review by third parties and stakeholders. These Handbooks, and an effective benefit-cost analysis framework, will help to maximize net social welfare for the people of New York.