3.1 Regulatory Environment Affecting Distribution Utilities

3.1.2 Challenges for Regulatory Activities with New Distribution Automation and DER Systems

This plethora of regulatory bodies creates challenges for the companies which are developing distribution automation plans and in particular, are installing and interconnecting increasing numbers and sizes of DER systems.  Not only does each utility have its own DER interconnection procedures, but their governing regulations may be very different between neighboring towns, cities, and states. This leads to increasing conflicting technical requirements, jurisdictional confusion, and expensive delays.
To help ameliorate these problems and in response to the Energy Policy Act of 2005, many jurisdictions considered or adopted IEEE 1547:2003 (and the associated safety testing and certification standard, UL 1741) as the basis for interconnection requirements, with modifications to meet local needs.  This use of standards has greatly simplified the regulations, providing key technical requirements and providing some badly needed stability.   
However, since the early 2000’s, new technologies and new market concepts are once again raising serious challenges to regulations, which will once again require better technical understandings, innovative financial and market ideas, and new regulations. These advances in technologies and new market ideas are discussed in the following sections.