Modernizing electricity systems is critical to achieving state energy goals such as reliability and resilience, affordability, economic development, clean energy resources, transportation electrification, and other environmental goals. Electric distribution system planning assesses needed physical and operational changes for the local grid. State and Territory Energy Offices develop plans, programs, policies, and projects that have a substantial impact on electric distribution systems. State Energy Offices also can participate in distribution system planning (DSP) processes to help ensure that utilities – consumer- and investor-owned – meet the state’s future energy needs. Distribution system plans provide a utility's strategic roadmap for investing in grid technologies and systems to achieve the state's energy goals and objectives. 

  • NASEO-NARUC DER Integration and Compensation Initiative

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    The joint NARUC-NASEO DER Integration and Compensation Initiative (DER I&C Initiative) is designed to support state policymakers in addressing policy and regulatory challenges related to the integration, operation, and compensation of distributed energy resources (DERs) within the distribution grid, bulk power system, and wholesale energy markets. The Initiative will support implementation of FERC Order 2222 in RTO/ISO regions. State oversight of transmission-distribution-customer (TDC) coordination and of aggregated DERs outside of RTO/ISO regions is also included in the scope of this initiative. ​

    DERs are connecting to electric grids at unprecedented rates and are forecast to accelerate. DERs will affect almost every aspect of the utility, wholesale, and retail arrangements. To optimize benefits for states and customers, policy makers will need to consider new technical and economic issues such as how to measure and value the benefits DERs provide; how to compensate DERs for these benefits; grid planning for increased DER penetration; maximizing the value of federal funding; and how aggregated DERs can be managed and leveraged to support resource adequacy and resilience at lower cost than other infrastructure solutions. ​

    The DER I&C Initiative will equip regulators and policy makers with tools, best practices, and peer networks to inform decision making on DERs in their states. ​

    Who ​

    The Initiative and its activities are open to commissioners and staff of all public utility commissions and the staff of state energy offices and state consumer advocates. ​

    What ​

    In 2023-2024, the DER I&C Initiative will build on the latest practices and literature through a three-part curriculum. You will learn through: ​

    • Review of best practices: learn from others to develop practical and actionable policies ​
    • Peer-to-peer collaboration: foster a trusting cohort of participants to work together on DER challenges ​
    • Practical problem solving: work with experts to understand challenges and create actionable solutions ​
    • Resource toolkits: documentation from each module will support ongoing regulatory and policy decisions  ​

    The first module, The Modern Landscape, will focus on best practices and lessons learned from actual implementations of aggregated DERs. Module 2 will cover Hot Topics in the aggregated DER space today, while Module 3 will facilitate a Deep Dive into a pressing topic or challenge. ​

    The NARUC-NASEO DER I&C Initiative is supported by the U.S. Department of Energy’s Offices of Electricity and Energy Efficiency & Renewable Energy, and facilitated by RMI. ​

  • NASEO Publications

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  • NASEO Event Recordings

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    • NASEO-NARUC DER Integration and Compensation Initiative Module 2 Workshops

    • NASEO-NARUC DER Integration and Compensation Initiative Module 1 Webinars:​

    • NASEO-NARUC DER Integration and Compensation Initiative Webinar: Grid Modernization Strategies to Accelerate Deployment of DERs, April 2023 (recording, presentation)

    • NARUC-NASEO Webinar: Grid Investments for FERC Order 2222, January 27, 2023 (recording, presentation)

    • NARUC-NASEO Distributed Energy Resource Integration and Compensation Workshop

      • DER-Bulk Power System Coordination, September 20, 2022 (presentation)

      • DER Integration through Advancing Interconnection, September 21, 2022 (presentation)

    • Distribution, NASEO Event Recordings: DER Aggregation Participation in Electricity Markets: NASEO and NARUC Webinar on EPRI Collaborative Forum Final Report and FERC Order 2222 Roadmap Confirmation, June 2, 2022 (recording, report)

  • Other Resources

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