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Non-Wires Alternatives

Moving Toward the Interactive Grid of the Future

Non-Wires Alternatives

We are committed to considering Non-Wires Alternatives (NWA) solutions to electric capital investments where they are appropriate and cost-effective, and supporting principles from the New York Public Service Commission’s Reforming the Energy Vision (REV) regulatory framework. NWA solutions utilize third-party Distributed Energy Resources (DERs) to postpone certain traditional construction projects needed primarily to correct system overloading conditions and in some cases, system reliability issues.

Strategy

Our strategy for NWA is to build a portfolio of NWA DER projects which are cost effective for customers, provide reliable alternatives to traditional capital investment projects, and provide full cost recovery and earnings opportunities for our companies, while we comply with regulatory directives and learn from and work cooperatively with other utilities and stakeholders.

Project Selection and Process

NWA solutions provide the opportunity to improve reliability, explore alternative infrastructure solutions and contribute to New York’s energy vision. To determine upcoming distribution and transmission projects suitable for these solutions, several factors are considered. Traditional electric system construction projects that meet a need for decreased demand and/or increased reliability, with a minimum of 36 months until time of need and construction costs greater than $1,000,000 are reviewed as potential NWA projects. Projects are evaluated and ordered according to time of need. Requests for proposals (RFP) are then scheduled and reviewed to determine cost-effectiveness and technical viability.

Project Opportunities

Capital projects included in NYSEG’s 2018 Capital Investment Plan (CIP) Filing that passed the NWA Screening Criteria are included below:

Transmission /Distribution	Project Name	Time of Need	Estimated RFP Release Timing
Distribution	Java 2nd Transformer and 12 kV Conversion - NWA RFP in Progress	2019	Released
Transmission	New Gardenville Substation - Add 3rd 230/115 kV Transformer - NWA RFP in Progress	2021	Released
Distribution	Stillwater Substation - Upgrade Transformer to 14 MVA - NWA RFP in Progress	2022	Released

Current Projects

Java Substation

Java Substation, located in our Lancaster Division, is a 34.5-4.8 kV substation with two distribution feeder circuits that serve approximately 1,665 customers. The existing 5 MVA bank has exceeded the nameplate rating and one circuit has significant load growth. The NWA project to postpone the transformer replacement was initiated with an RFP in 2016.

Stillwater Substation

Stillwater Substation, located in our Mechanicville Division, is a 2.8 MVA substation that serves approximately 1,270 customers. The transformer at the substation is near or over its nameplate rating. The traditional wires project is to upgrade the Stillwater Substation with a new 34.5-4.8 X 12.5 kV, 10/12.5 (14) MVA, LTC transformer and convert approximately two miles of distribution circuit to 12.5 kV from the substation to Colonial Drive. An RFP requesting NWA solutions for this project was issued in July 2017.

New Gardenville Substation

The New Gardenville Substation, located in our Lancaster Division, contains two 230/115 kV transformers that have experienced low bus voltages and thermal overload. The traditional wires project is to install a third 230/115 kV transformer at the substation and operate it in parallel with the two existing transformers. An RFP requesting NWA solutions for this project was issued in September 2017.