Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC staff comments on New York’s proposed transformation of electric distribution system, (Nov 30, 2015)

By Michael Menzhuber, J.D., LL.M.

The FTC staff has submitted a reply comment in the New York State Public Service Commission’s (PSC) Reforming the Energy Vision (REV) proceeding regarding that agency’s “Staff White Paper on Ratemaking and Utility Business Models.” The comment addresses the NY PSC staff’s views on how to blunt electric distribution utilities’ incentives to discriminate against independently owned and operated distributed energy source (DER) projects.

The REV proceeding seeks to restructure New York State’s electricity distribution system in the face of a number of key developments, such as: (1) technical advances in DERs; (2) increased concerns about the environmental effects of power generation; and (3) consumers’ interest in customized electricity services.

The FTC staff comment includes:

• suggesting that the Revenues White Paper, which describes the REV’s objectives only in terms of lower prices or lower power bills, should also focus on improvements to electric system efficiency and on increases in the value that customers derive from customized electricity services;

• encouraging the NY PSC to consider concerns about potential cross-subsidization by distribution utilities and unfair competition in services that independent firms provide to DER investors, owners, and organizers; and

• proposing adjustments to some of the distribution utilities’ financial incentives in order to improve customer benefits and avoid harm to competition and efficiency.

News: Antitrust FederalTradeCommissionNews