The Interconnection EarningAdjustment Mechanism


Pursuant to the NY Public Service Commission’s (“PSC’s”) Order Adopting a Ratemaking and Utility Revenue Model Policy Framework (“REV Track Two Order”) under the Reforming the Energy Vision (“REV”) proceeding, the Joint Utilities of New York (“JU”) filed an initial plan to survey developers who applied to interconnect under the updated Standardized Interconnection Requirements (“SIR”). The JU hosted a stakeholder engagement meeting on October 17, 2016, to provide information and gather feedback on the initial plan, and a Notice of Proposed Rule Making was published by the PSC in the State Register on November 9, 2016.

The JU filed a modified plan on May 8, 2017, in response to a March 9, 2017, PSC Order. The JU modified plan includes the proposed interconnection survey questionnaires as attachments. In the initial and modified plans, the JU’s goal is to assess overall satisfaction with the interconnection process, and the JU have proposed a framework for an Earning Adjustment Mechanism (“EAM”) metric based on requirements in the REV Track Two Order. A Notice of Proposed Rule Making related to the JU’s modified plan was published by the PSC on May 31, 2017, with public comments due by July 17, 2017.

Consistent with the PSC’s direction for utility and DPS Staff coordination, the Joint Utilities discussed modified surveys in July and August 2017 with Staff and provided revised surveys reflecting that collaboration in an August 28, 2017, supplemental filing. Some utilities continued to implement the existing IEAM survey to support their individual proceedings while Joint Utilities waited to receive regulatory approval to implement the revised surveys. However, on October 24, 2018, DPS Staff released a whitepaper highlighting the effectiveness of alternative strategies to streamline the interconnection process, and recommending that IEAM be eliminated. Following a public comment period, PSC issued an order eliminating IEAM on April 24, 2019.