The new order under New York's Reforming the Energy Vision (REV) program allows utilities to capitalize Software as a Service) SaaS expenditures, opening the door to software investment. Will this only be a New York thing, or does it have the possibility to impact the way utilities do business in the U.S?
New York (NY) is leading the way in what the "future utility" may look like. Putting greater emphasis on the utility customer and giving customers greater choice on how they produce and consume energy is a shift in traditional utility practices. This can have a positive impact on the environment, increase market efficiencies and customer satisfaction. NY's ruling on how a utility can treat investments in software and capitalize on it is a big move. This will give the utilities more comfort and confidence in spending on software applications that they might otherwise hold off on. If NY continues to show progress and convince regulators and rate payers that REV is working and making a positive change this could spill over into other markets. If NY's treatment of software investments by a utility is accepted and implemented in other markets we could see a greater pace of growth in the digital customer engagement space, not to mention many other offerings and innovations evolving in power markets.