New York State Energy Czar Looks to “Grid of Tomorrow”

“I don’t want to talk about the future of utilities yet. I want to first talk about the past,” said Richard L. Kauffman, New York State’s “energy czar,” at the outset of his recent remarks to the Center on Global Energy Policy.

Kauffman, who works in the office of Governor Andrew Cuomo as chairman of energy and finance for New York State, spoke on February 18 about “Reforming the Energy Vision.” He framed his presentation with the story of J.P. Morgan’s little-known role in the War of Currents—the competition between early utility companies at the advent of electricity.

As a financier, Morgan had tried to push Thomas Edison, in particular, toward a less capital-intensive business model. This shift, Kauffman suggested, mirrors the kinds of changes that utility companies are going through today, with the advent of renewable energy technologies.

Kauffman discussed the roadblocks to constructing the energy grid of tomorrow, which he said “should be the grid of today.” He identified five trends that contribute to these roadblocks, including intense focus on returns to capital, shifts from production push to customer pull, and price deflation in commodities.

Kauffman contended that Cuomo’s plan, “Reforming the Energy Vision” or REVNY, would move New York closer to the grid of tomorrow by creating “a more affordable, resilient system, that’s cleaner and gives customers more choice and value.”

The event was moderated by CGEP Fellow David Sandalow.

— Lindsay Fuller MPA ’16