Statewide Active Demand Management and Performance Incentive Component Sample Clauses

Statewide Active Demand Management and Performance Incentive Component. As the Compact has noted, storage is a robustly cost effective demand reduction technology that delivers benefits to all PA customers in the Commonwealth, but residential customers lack their own economic incentives to install storage. See, e.g., DPU-Compact 1-15. While the Compact chose to provide full up-front incentives for its residential customers to install dispatchable storage technology, the other electric PAs have taken a moderate step forward as well with a “bring your own technology” performance payment storage offering in combination with a proposed performance incentive component for active demand management. Ex. 1 at 68; 162-63. While CLF does not oppose the Eversource Electric and National Grid Electric approaches to storage, record evidence raises questions about the less robust nature of their offerings in comparison with the Compact’s storage offering. See Ex. DPU-Electric 2-3 (noting that the Compact’s approach does not have the same high startup costs as the statewide storage offering), Ex. DPU-Electric 2-4 (noting that Eversource’s 2018 demand demonstration used the contractual model that the Compact is proposing). The PAs also state that solar PV is a better value proposition for residential customers than is storage technology. Ex. NEEC-Comm 1-7. Since distributed storage is a cost effective and valuable technology for PAs, this begs the question as to why the statewide Plan is not taking more steps to make it worth a customer’s while to install storage. It is positive that the other PAs plan to watch the Compact’s integrated CVEO offering, see NEEC-Comm 1-7, and the Department should ensure that the PAs adopt a similar approach, including the enhanced incentives, see Ex. AC-Electric 1-2, if the Compact’s cost effective storage and electrification offerings prove successful. It should also be noted by the Department that the non-Compact electric PAs’ discussion of the cost effectiveness of active demand management offerings does not discuss the 2018 GCA amendments. See, e.g., DPU- Electric 6-6.
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