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Policy:

NYSEIA Comments Regarding Improvements to VDER (DRV and LSRV Derivation)

February 26, 2025

On February 26th, 2025, NYSEIA filed comments regarding improvements to VDER in Public Service Commission cases 15-E-0751 and 19-E-0283. In our comments, we responded to the Joint Utilities (JU) proposal for calculating Demand Reduction Value (DRV) and Locational System Relief Value (LSRV) from the Marginal Cost of Service (MCOS).


The proposed reduction in the current DRV compensation would not provide ratepayer savings, and instead result in higher costs for ratepayers, less clean energy generation, and increased reliance on ratepayer-funded capacity-based incentives through NYSERDA to support clean energy resources.


NYSEIA also highlights key points made in the Clean Energy Parties (CEP) comments that the Commission should: set DRV to be equal to MCOS, revamp LSRV to leverage dispatchable resources and better meet utility needs, establish a standard DRV derivation method now while allowing time for stakeholders and staff to develop a modified LSRV program, and that New York should protect and build upon its existing market for VDER-compensated resources.


Click "READ MORE" to view our full comments.

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