–NYC Owners and Institutions Must Act Now to Benefit–
VALHALLA, NY – April 17, 2014 – ConEdison Solutions, one of the country’s largest energy services companies, is alerting developers, building owners and institutions in New York City to take advantage of major increases in “peak demand,” or peak load, financial incentives offered to large energy users that agree to partially curtail energy use on the summer’s hottest days, when energy demand reaches its peak.
The proposed incentive levels in 2014 will increase payments by 60 percent or more above what was paid for similar “demand response” (DR) curtailments in 2013. Targeting major users in the five boroughs, the enhanced incentives are provided by the New York Independent System Operator (NYISO) and Con Edison, the regulated utility that serves New York City and Westchester. These new Con Edison utility demand response incentive payments were formally approved by the New York State Public Service Commission (NYPSC) in mid-March.
To demonstrate the dollars-and-cents scope of the new, enhanced Con Edison and NYISO DR incentives, ConEdison Solutions cites this hypothetical example: In 2013, if a 1.4 million square-foot office building were fully equipped by ConEdison Solutions to earn the maximum in DR incentive payments, its owner may have been paid $178,000 for reducing load during “peak load” alerts.
By contrast, in 2014, that same owner making that same reduction would be paid about $300,000 — a 60-percent increase over 2013.
“Peak load incentives for DR programs available in New York City are about to increase significantly over the course of a single year, and the city’s forward-thinking energy users will be poised to take full advantage,” said Jorge J. Lopez, President and CEO of ConEdisonSolutions. “Additionally, customers are leveraging our advanced demand response technology to earn revenues throughout the year by executing energy ‘sell-backs’ timed to periods when market prices are right.”
When demand is extremely high, “peak load” alerts are issued by the NYISO, a not-for-profit corporation responsible for operating New York’s statewide electricity grid and maintaining its reliability. In addition, when Con Edison detects extraordinary demand on its local utility distribution system, the utility will call an event requesting customers participating in their DR programs to curtail consumption. Users who participate in these programs and reduce energy consumption during these events earn incentive payments.
Source: ConEdison Solutions