State	Approaches	to	DERs:	A	Skilled	
Ringmaster	Required			
	
Presenta)on	by	Sky	Stanfield	
July	13,	2016
Where is Grid
Modernization Happening?
States	with	Current	Proceedings		
States	in	Early	Stages/Considering		
District	of		
Columbia	
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What is Grid Modernization?
•  Utility business model reform
•  Distribution system planning
•  Hosting capacity
•  Locational value assessments
•  Smart meters
•  Procurement programs for DERs
•  Rate design
•  Interconnection policy
•  Data sharing and transparency
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Courtesy of Circus World Museum, Baraboo, Wisconsin, and Ringling Bros. and Barnum & Bailey Circus
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Grid Mod is a Juggling Act
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What is driving the conversation?
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•  Is the state facing a crisis point? i.e. reaching NEM
caps, interconnection queue backlog, utility
acquisitions?
•  Is there time for a long-range approach or is there a
need for immediate action?
Are Foundational Policies in Place?
•  Clearly Articulated
Policy Goals (i.e.
RPS, CO2 Targets)
•  Interconnection
Standards
•  Smart Meters
•  Sufficient Grid
Transparency
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Can you Skip the Business Model?
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•  Will utility proposal be trusted if their
incentives are misaligned?
•  If significant capital investments are on
the table (i.e. for grid management
software) how do you ensure they are
deployed effectively?
•  The role of “walk, jog, run” and
“gradualism”
•  Risk of further entrenchment
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•  Considerable interaction & overlap between issues
•  Determine best possible order to address each
•  Think about how the “hand-off” will go
•  Example: Do we risk inaccurate valuation results if
the interconnection costs are not understood first?
Are there Sufficient Commission
Resources available?
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What Does Meaningful Stakeholder
Engagement Look Like?
•  Stakeholders do not have unlimited resources
•  Structure processes to get substantive and
specific contributions
•  Utility control over engagement limits
achievement of disruption goals
•  Asking only market players leaves out the
interests of consumers and public interest
•  Ask early to avoid the need to re-do or re-visit
foundational issues
•  Coordinate and share responsibility 12
Do Not Forget the Customer
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Sky	Stanfield	
Senior	Special	Counsel	
Shute	Mihaly	&	Weinberger,	LLP	
stanfield@smwlaw.com	
	
Sara	Baldwin	Auck	
IREC’s	Regulatory	Program	
Director	
sarab@irecusa.org	
	
www.irecusa.org	
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State Approaches to DERs: Skilled Ringmaster Required