Con Ed DR Programs Offer Customer Rebates

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Con Edison and the NYISO offer customers who can reduce demand various Demand Response (DR) programs leading to rebates. Customers in New York City and Westchester County qualify. Permanent demand reductions such as lighting retrofits qualify for the Con Ed DR rebates.

Installed Capacity Program

The Installed Capacity Program (ICAP) may be activated by the NYISO in response to power shortages or other emergencies. Con Ed will contact program participants with a request to curtail their power use.

When the NYSIO anticipates that reliability of major transmission and distribution systems may be compromised, or that power demand may exceed available supply, the NYISO may declare an emergency. Con Ed will then contact program participants with a request to curtail demand under ICAP. Customers will receive an advisory day-ahead notice followed by a notice two hours before the event to curtail power.

A customer who is capable of reducing at least 100 kW of electric load for at least four hours through on-site generation or curtailed load can participate in ICAP. The two curtailment capability periods are from May 1 through October 31 and from November 1 through April 30.

Customers must have an interval meter. The meter measures and records electrical use each hour; the data are used to verify load reduction and calculate appropriate payment.  Con Edison will install the meter. For assistance with Con Ed meter replacement, go here.

Emergency Demand Response Program

The Emergency Demand Response Program (EDRP) may be activated by the NYISO as a response to power shortages or other emergencies. Con Ed will contact program participants with a request to voluntarily curtail their power use.
Customers must have an interval meter. Incentives are available for the cost of the interval meter installations through NYSERDA’s Existing Facilities Program.

Any Con Ed customer capable of reducing at least 100 kW of load for four hours can participate in EDRP. Customers enrolled in EDRP are not eligible to participate in ICAP.

Customers will receive the greater of $.45 for each kilowatt-hour curtailed, or 90% of the price of energy in the real-time wholesale market, the real-time zonal Locational-Based Marginal Price.

Customers will also receive Con Ed’s Demand Monitoring Software, software which can be used to identify ways to reduce electricity consumption and lower operating costs.

Distribution Load Relief Program

The Distribution Load Relief Program (DLRP) is designed to temporarily reduce electricity use to help maintain reliable service on the Con Ed delivery system.

Customers must have an interval meter.

Any Con Ed customer who can reduce usage by at least 50 kW can participate in DLRP directly or through an aggregator. Customers who do not meet the minimum reduction can apply through an aggregator who will combine customer loads to participate.  Customers are required to provide load reduction for no less than four hours during an emergency event.

There are two ways to participate in DLRP. The voluntary option pays incentives for electricity not used. The mandatory option also pays for electricity not used during an event and pays a monthly incentive for a guaranteed reduction commitment. Participants in the voluntary option will receive the greater of $.50 per kWh curtailed, or the real-time zonal Locational-Based Marginal Price less the retail rate for an event.

Payments in the mandatory option are based on a tier system. Tier I payments are $3.00 per kW-month for six load events of four hours each in a designated network. Tier II payments are $6.00 per kW-month for six events of four hours in a designated network.

Additional payments for the mandatory option:

1. Additional $1.00 per kW-month for more than six events but fewer than 10 events, or more than four hours but less than eight hours per month per capability period.

2. Additional $1.50 per kW-month for ten or more events and / or if the event lasts more than eight hours per month per capability period.

Mandatory option participants who do not provide the full amount of committed load reduction during either a test or event will be expelled from the mandatory DLRP.

Photo: NYC skyline from a lower midtown rooftop during August 2003 blackout, credit John Wehr.

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