On April 24, 2014, the New York State Public Service Commission (“NYPSC”) staff released a report and proposal (“Proposal”) that calls for a shift away from the traditional utility model of centralized generation, toward a more decentralized electric grid that relies increasingly on energy efficiency, demand resources and distributed generation.  As reflected in the Proposal, this shift would be accomplished by (1) making energy efficiency and distributed resources a primary factor in energy planning, and (2) revising the NYPSC’s ratemaking framework by improving incentives and removing disincentives for distributed generation.

On April 29, 2014, Washington State Governor Jay Inslee signed an executive order outlining a series of “next steps” to reduce carbon pollution within the state, including the creation of a market based carbon pollution cap program and to work towards eventually eliminating the use of electricity produced by coal. 

On April 18, 2014, the U.S. District Court for the District of Minnesota struck down Minnesota’s restrictions on importing new electricity from carbon emitting power plants in other states.  Among other things, Minnesota’s 2007 Next Generation Energy Act (“NGEA”) prohibited any person from importing, or contracting for the import of, any new power from an out-of-state facility that would contribute to statewide power sector carbon dioxide emissions without a corresponding carbon-dioxide reduction project.  The law effectively barred Minnesota utilities from importing additional power from coal-fired generation.  U.S. District Judge Susan Richard Nelson ruled that Minnesota’s attempt to limit the importation of power from facilities outside of Minnesota imposed unconstitutional restrictions on out-of-state electricity producers in violation of the dormant Commerce Clause.