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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 support principles from the New York Public Service Commission’s Reforming the Energy Vision (REV) regulatory framework. solutions utilize third-party Distributed Energy Resources (DERs) to postpone or otherwise avoid certain traditional construction projects. These projects arise primarily to correct system overloading conditions and, in some instances, 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 responses are reviewed to determine the cost-effectiveness and technical viability of each project. Contracting with third party developers and project construction, measurement and verification follow.

Project Opportunities

There are no open NWA solicitations at this time.

Current Projects

Stillwater NWA Project

NYSEG’s Stillwater substation serves approximately 1,270 residential and small commercial customers via a substation and distribution circuit where overload conditions and power quality (i.e., low voltage) issues are identified system needs.

In July 2017, NYSEG issued the Stillwater Non-Wires Alternatives (NWA) Request for Proposals (RFP) which requested responses from qualified developers with the capability to deliver innovative solutions to defer or avoid the need for the construction of the traditional transformer upgrade project. Proposed NWA solution(s) were required to address NYSEG’s responsibility to provide safe and reliable service at reasonable costs and in an environmentally sound manner. NYSEG conducted an in-depth analysis of the proposals received, choosing to meet the identified project needs through a developer installed and operated 1 MW/2.9 MWh battery energy storage solution located roughly 1.8 miles from the Stillwater substation on the 4.8 kV distribution circuit.

NYSEG and the developer continue to progress toward a proposed in-service date in 2023. With the Stillwater NWA project, NYSEG plans to defer for 10 years the implementation of the traditional wires solution which would upgrade and replace the existing transformer and upgrade the distribution circuit.