Business Opportunity Analysis

Project: The SGE Immersion team explored new utility business model and revenue opportunities in light of New York State’s “Reforming the Energy Vision” (REV) plan which was intended to remake how New York’s electric utilities operate, make money, and are regulated. Specifically, the team explored potential new business models and market opportunities to increase Con Edison’s revenue, customer engagement, brand value, and customer energy technology adoption/integration. Opportunities were considered in the context of the six guiding policy principles of REV: 1) enhanced customer knowledge and tools, 2) market animation and leverage of ratepayer contributions, 3) system wide efficiency, 4) system reliability and resiliency, 5) fuel and resource diversity, and 6) reduction of carbon. The team evaluated new business and revenue opportunities that could help drive increased organic market growth of customer-sided energy management strategies and technologies while accounting for the reduction and/or elimination of existing subsidies for energy efficiency, demand management, renewables, and smart grid. The team was focused on innovative ways to increase current company revenues and/or create new revenue streams while recognizing the current downward pressures on utility revenues and upward pressures on rates and costs, as well as recognizing current market opportunities and challenges, potential customer revenue streams, revenue opportunities from other energy market activities (e.g. data access, market operation and dispatch), financial impacts of increasing brand value, and providing in-depth market and financial analysis of the most promising business, brand, and revenue opportunities.