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Huge Boost In Summer 2014 ‘Peak Load’ Incentives Presents Major Financial Opportunities
April 21, 2014
NYC Owners and Institutions Must Act Now to Benefit
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 ConEdison Solutions. “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.
ConEdison Solutions officials emphasized, however, that owners and institutions must act quickly to take full advantage of the increased 2014 incentives because participant’s applications must be filed with the NYISO and Con Edison by May 1st in order to participate in the June 1, 2014 program start date.
To enable clients to achieve maximum value from demand response opportunities, ConEdison Solutions has equipped large-scale energy users with a sophisticated demand response capability called VPower. VPower leverages proprietary software to give users the ability to control their response to grid events called by the ISO or utilities, including Con Edison. In addition, the VPower software gives customers a dashboard that provides a view into system performance and compliance during an event. This enables customers to ensure they are maximizing the value of their participation and meeting their commitment requirements.
ConEdison Solutions works with clients to assess their facilities’ energy requirements and system capabilities to identify opportunities for reducing consumption when an event is called. The process results in a protocol for clients that identifies the equipment modifications necessary to achieve load reductions. ConEdison Solutions, as part of the VPower installation, will synchronize these modifications with our client’s building management system to allow for a quick response and minimal involvement of on-site staff.
As part of the DR evaluation, ConEdison Solutions incorporates the benefits of demand response in modifying a client’s load shape into their energy supply portfolio. In addition, as a result of the engineering evaluation of a client’s facility, ConEdison Solutions will look to identify energy efficiency opportunities for the client as well.
About ConEdison Solutions
ConEdison Solutions is a leading energy services company that provides competitive power supply, renewable energy, sustainability services, cost-effective energy efficiency solutions, and performance contracting services for commercial, industrial, residential and government customers, including universities, public school districts, and hospitals nationwide. Offering innovative products, financial stability, and a commitment to customer service, the company is based in Valhalla, New York, with offices in Burlington, Massachusetts; Cherry Hill, New Jersey; Chicago, Illinois; Falls Church, Virginia; Houston, Texas; Tampa, Florida; and Overland Park, Kansas. The firm’s dedicated team of energy professionals delivers a broad range of energy solutions. ConEdison Solutions offers programs and services designed to help customers achieve their individual energy objectives and is accredited as an Energy Services Provider (ESP) by the National Association of Energy Service Companies (NAESCO).
ConEdison Solutions is a subsidiary and registered trademark of Consolidated Edison, Inc. (NYSE: ED). More information can be obtained by calling 1-888-210-8899 or visiting the ConEdison Solutions website at www.conedsolutions.com. You can also visit the Consolidated Edison, Inc. website at http://investor.conedison.com for information on all of the Consolidated Edison companies.
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