Presentation to the New York Department of Public Service
The New York Department of Public Service (DPS) is working on developing a more accurate compensation mechanism for distributed energy resources (DERs) that can capture the true value that DERs create. We have been particularly involved in the Value Stack Working Group, which is examining possible ways to price DERs based on specific value components of the resources, including environmental attributes. We were invited to make a presentation to the PSC on monetizing externalities of air pollution. In our presentation, we explained that the DPS can increase economic efficiency by directly incorporating the monetary value of avoided emissions as a value stack component in the DER compensation mechanism, and we provided a methodology for this process. We plan to remain involved in this proceeding as it progresses in the coming months.