New York State Public Service Commission (PSC)

The NYS Public Service Commission (PSC) is a regulatory agency responsible for overseeing New York’s electric, gas, steam, telecommunications, and water utilities, and the cable industry. The PSC’s goal is to ensure the reliability, affordability, and adequate service of New York’s utilities. The Commission also authorizes the siting of major gas and electric facilities and is responsible for standard interconnection procedures for on-site, grid-connected, generation.

The Commission is bipartisan and consists of up to five members, each appointed by the Governor and confirmed by the State Senate for a term of six years or to complete an unexpired term of a former Commissioner. The Chairman, designated by the Governor, is the chief executive officer of the Department. The staff arm of the Commission is referred to as the NYS Department of Public Service (DPS).

ACE NY actively monitors a number of cases currently under the PSC’s consideration and works with DPS staff to develop sound clean policies. Please check this page for updates, information, and resources regarding PSC activities.

These are a few of the major PSC proceedings affecting the clean energy and energy efficiency sector:

Energy Efficiency Portfolio Standard

On May 16, 2007, the Public Service Commission initiated a proceeding to design an electric and natural gas Energy Efficiency Portfolio Standard (EEPS). The EEPS will establish targets for energy efficiency intended to reverse the pattern of increasing energy use in New York. The overall State goal is to reduce projected energy consumption 15% by 2015.  Implementation of the necessary efficiency programs will be conducted by both NYSERDA and the State’s investor owned utilities and will be funded by rate payer surcharges and other funding mechanisms such as on-bill financing.

Renewable Portfolio Standard

In September, 2004, the Public Service Commission adopted a Renewable Portfolio Standard (RPS) for electric energy retailed in New York State, in order to address the environmental concerns of reliance on fossil-fueled generation and to diversify the State’s energy portfolio. The goal of the RPS is for at least 25% of the State’s electricity use to come from renewable sources by the year 2013. That translates to a 6% increase given New York already uses hydropower for approximately 19% of its electric needs. The RPS is funded by a rate-payer surcharge and administered by the New York State Energy Research and Development Authority (NYSERDA), which contracts with eligible renewable generators via a competitive bidding process (for rights to environmental attributes and not for energy) and provides rebates to utility customers installing eligible on-site renewable generation.

System Benefits Charge

In 1996, the New York State Public Service Commission (PSC) established a System Benefits Charge (SBC) to fund public policy initiatives under  New York's restructured competitive electricity markets. These initiatives include programs supporting energy efficiency measures, research and development of innovative energy technologies, support for renewable energy development and programs targeted at lower-income consumers. The SBC was renewed in 2001 and again in 2005. The programs are are administered by the New York State Energy Research and Development Authority (NYSERDA). The Energy Efficiency Portfolio Standard discussed above will build on many of the pre-existing efficiency programs conducted by NYSERDA under the SBC.