Policy and practice of distributed generation interconnection in the Con Edison distribution system

Distributed generation (DG), for the moment loosely defined as small-scale electricity generation, is a fairly new concept in the economics literature about electricity markets, but the idea is not new at all. When Thomas Edison started his electrical utility business at Pearl Street Station on September 4, 1882, it only served customers in a one square mile area. Later, technological evolutions allowed for electricity to be transported over longer distances, economies of scale in electricity generation lead to an increase in the power output of generation units, and reliability concerns lead to the network development. Massive electricity systems were formed with huge transmission and distribution grids and large generation plants. In the last decade however, technological innovations and a changing economic and regulatory environment have resulted in a renewed interest in DG. This renewed global focus on DG and in particular renewable technologies, along with improved generation and control technologies are well aligned with emerging economies. Consolidated Edison Company of New York, Inc. (Con Edison) permits any customer that meets technical interconnection requirements to operate generating equipment in parallel with the Con Edison´s electric distribution system. DG is playing an increasingly important role in Con Edison´s electric distribution system, and DG is expected to one day become an integral part of Con Edison´s electric system. This paper discusses the options and current development of DG at customer facilities on Con Edison´s electric distribution system.