Finance

Finance

CDG Model – The Utility’s Role in the CDG Model

Jan Borchert, Current Hydro and Dana Hall, Esq.

Community renewable programs almost always involve the distribution utility which meters the host generation and applies credits to customer accounts. Based on the CDG Key Requirements, a CDG host and all subscribers must be located within the same utility service territory and NYISO zone overlay.

NYS Electric Distribution Utility Map

The load serving entities, or distribution utilities, that operate within New York State are all required to offer CDG program instructions for their service territories:

Their programs are substantially similar, but have nuanced differences related to how the CDG host interconnects, submits the allocation form, and how pricing works in a specific location as it relates to specific characteristics and needs in the grid. The process of billing subscribers involves the utility providing each CDG host with a monthly statement explaining how credits were applied to each subscriber’s bill.

The NYPSC recognized the complexity involved in utility billing and crediting for CDG and the value stack, as compared to traditional net metering, and ordered the utilities to file billing and automation plans explaining how and when they would automate the billing process for CDG.[1]

With regular net metering, compensation appears on the customer-generator’s bill immediately following the end of the billing cycle when the energy is generated and injected. But the CDG program involves the need to apply credits from one project to multiple accounts, with different billing cycles and more detailed, and granular calculations. As a result, the credits are applied in the billing cycle following the injection of energy from the host facility. Utilities are required to provide CDG hosts with timely and detailed information on the compensation provided for their projects’ generation each month, including a standardized report.[2]

Once the host receives this information from the utility, they can bill the subscribers for the agreed upon value of the credits that were applied.

But let’s talk about electricity bills, value stack and CDG economics.

Find more info in our full Microhydro Community DG report.


[1] Clause 11 of the Order on Phase One Value of Distributed Energy Resources Implementation Proposals, Cost Mitigation Issues, and Related Matters issued and effective September 14, 2017 in Case 15-E-0751.

[2] Appendix F of the September 14, 2017 Phase One VDER Order provides a list of required information that utilities must provide in their standardized monthly reports to CDG hosts.


>