FTC Staff Advises New York State Public Service Commission On Improving Proposal to Transform Electric Distribution System

The Federal Trade Commission staff submitted a comment to the New York State Public Service Commission (NY PSC) regarding that agency’s Reforming the Energy Vision (REV) proceeding. The REV proceeding seeks, among other things, to optimize the way electricity distributors and customers can respond to supply and demand amid the continuously changing conditions throughout the electric power system that serves residential, commercial, and industrial electricity customers in New York.

The FTC staff comment responds to third-party comments regarding a NY PSC Staff White Paper on Benefit-Cost Analysis (Staff BCA) in the REV proceeding.

The FTC staff comment recommends that the principles set forth in the Staff BCA recognize how customers can benefit from a greater ability to match the electric services they receive to their preferences among such services.  The comment also notes that the principles need to take into account a broader spectrum of benefit and cost criteria, such as service quality, customization of services to match customer preferences, and the effects of increased competition on price. It also suggests that the Staff BCA include sensitivity analysis to allow electricity distributors and the NY PSC to respond appropriately if future technological, economic, and environmental conditions differ from conditions that the Staff BCA currently anticipates.

The Commission vote authorizing the staff comment was 4-0.  (FTC File No. V140012; the staff contact is John H. Seesel, Associate General Counsel for Energy, Office of the General Counsel, 202-326-2702).