New York PSC Seeks to Establish Framework for Widespread Deployment of BPL
STATE OF NEW YORK
Public Service Commission
William M. Flynn, Chairman
Three Empire State Plaza, Albany, NY 12223
Further Details: (518) 474-7080
dps.state.ny.us
FOR RELEASE: IMMEDIATELY 06005/06M0043
PSC Seeks to Establish Framework for Widespread Deployment of Broadband over
Power Line (BPL) Technologies
Albany, NY—01/18/06—The New York Public Service Commission today announced
that it will initiate a proceeding to examine issues related to the deployment of broadband
communications services over power lines (BPL). Specifically, the goals of the proceeding will
be to identify and address key issues raised by BPL deployment and the potential use of BPL
technology by regulated electric utilities.
"New York State already benefits from a robust telecommunications market where
broadband services are accessible via different technologies to approximately 95% of its
residents," said Commission Chairman William M. Flynn. "BPL technology has the potential to
provide consumers with an additional option for broadband service. The economic deployment
of BPL is clearly in the interest of New Yorkers; however, the Commission must provide
sufficient safeguards for the operation of power systems and ensure that the electric customers
are adequately compensated."
Broadband services are currently available from traditional wireline and cable television
providers, cellular service, Personal Communications Service (PCS), WiFi hotspots and satellite
providers using radio technologies. Through this proceeding, the Commission will investigate
the potential for more widespread use of BPL technology, identify the key regulatory issues
posed by BPL, and begin to develop the appropriate regulatory framework for the efficient
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interface of monopoly transmission and distribution systems with competitive communications
services.
In commencing the proceeding, the Commission reiterated its long-standing principles
that competition is the most efficient way to ensure the provision of quality utility services at
reasonable prices, and that the structural separation of certain assets and operations is the most
effective way to prevent potential abuses that may arise when competitive operations are
affiliated with regulated utility monopolies. The Commission has tentatively concluded that
economically viable facilities-based BPL services -- offered by competitive providers -- will
benefit New Yorkers. Therefore, consistent with the principles noted above, parties in this
proceeding will be asked to explore the most effective means of granting unaffiliated BPL
service providers appropriate access to electric system facilities at market based prices.
The Commission also recognizes that various applications of BPL technology could --
over the long term -- benefit the electric utilities and their customers. Some potential benefits
include improved transmission and distribution service quality and reliability, improved power
quality, enhanced system monitoring, and better demand-side management opportunities as a
result of instantaneous access to customers' metering telemetry. Parties in the proceeding will be
asked to identify applications that could benefit electric utilities and their customers, and whether
the communications capacity needed to provide such services might impact the provision of
BPL-based communications service to customers.
The provision of broadband services to customers through the use of a regulated electric
utility's power lines, poles, and ducts raises new issues for the Commission, many of which are
unique to the technology. Some of the specific issues to be examined in this proceeding include:
• Technical characteristics of currently available and expected BPL systems, as well as the
capacity, performance, robustness, and security offered by BPL technology. Potential
impacts of BPL technology on the operations, safety, and reliability of the existing
electric system.
• Applicability of existing national codes to BPL systems and the possibility that such
codes may need modification to address BPL interfaces.
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• The most appropriate business model for deployment of BPL-based services and the
specific regulatory ramifications.
• The nature and extent of expected utility involvement in deployment of BPL, the
potential incremental costs, the process used to identify these incremental costs, and the
appropriate funding source for such costs. To the extent that the electric utility receives
payments for the use of or access to its facilities, should such proceeds be available for
the benefit or customers?
• Identification of the electric system components to which a BPL provider would require
access.
Availability of BPL Technology
There are currently two commercial BPL deployments in the United States. Cinergy
Corporation provides BPL-based services to an estimated 7,500 customers in Cincinnati, Ohio.
The City of Manassas, Virginia provides municipal BPL service to an estimated 1,200
customers. In New York State, there are two active trial deployments of BPL technology.
Consolidated Edison Company of New York, Inc. has deployed BPL technology in Briarcliff
Manor in Westchester County, as well as parts of Manhattan, and Orange County. New Visions
PLC, LLC has deployed BPL technology in the Village of Solvay in Onondaga County.
The Commission will issue a written Order initiating a proceeding and inviting
comments. Interested parties will have 45 days from the date of the Commission's Order to
submit comments. The Order in Case 06-M-0043, when available, can be obtained from the
Commission's Web site at dps.state.ny.us by accessing the "Commission
Documents" section of the homepage. The Commission's Order also can be obtained from the
Commission's File Office, 14th Floor, 3 Empire State Plaza, Albany, NY 12223 (518-474-2500).
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