New England Utility Demand Response Programs

Alongside ISO-NE wholesale market programs, utilities across New England (e.g., National Grid, Eversource, Unitil) operate their own Demand Response programs. These are often funded through state-mandated energy efficiency plans (like Massachusetts' Three-Year Plan) and focus on reducing peak demand on the local or state level.

Key Utility Program Example: ConnectedSolutions

ConnectedSolutions is a prominent DR program offered by major utilities like National Grid and Eversource in states such as Massachusetts, Rhode Island, and Connecticut.

  • Goal: Reduce electricity demand during specific summer peak hours identified by the utility, helping to lower overall system costs and meet state peak reduction goals.
  • Type: Utility DSM / Peak Clipping (Economic, not typically emergency-triggered)
  • Administered By: Local Utility (e.g., National Grid MA, Eversource MA/CT/RI)
  • Participation: C&I customers (often 50 kW minimum load, aggregation possible) enroll directly with the utility or via approved partners/aggregators.
  • Events: Typically 1-20 brief events per summer (June-September), usually lasting 2-3 hours on the hottest weekday afternoons when system peaks are anticipated. Notice is often given day-ahead or morning-of.
  • Compensation: Pay-for-performance based on average kW reduction across all events during the summer season. Typical rates are around $35 per kW of average reduction achieved. Some programs offer bonuses (e.g., +$10/kW) for performance during occasional weekend events. Incentives are generally paid annually after the summer season.
    • Note for Batteries: Significantly higher incentives (e.g., up to $225-$275/kW-year) are often available for using battery storage systems to provide the load reduction in ConnectedSolutions programs.
  • Stackability: Coordination Required. Customers participating in ConnectedSolutions might also be enrolled in ISO-NE's FCM via an aggregator. To prevent double payments for the same reduction during overlapping peak hours, the utility typically adjusts its payment based on any FCM capacity revenue the customer receives for that capability. Customers generally don't get paid twice for the exact same kW reduction.
  • Requirements: Interval metering (often standard utility smart meters suffice), internet connection for receiving event notifications/signals.
  • Penalties: Generally no direct financial penalties. It's pay-for-performance – if a customer doesn't reduce load during events, their average reduction will be lower, resulting in a smaller incentive payment.

How Utility Programs Fit In

  • State Policy Driven: Funding often comes from established energy efficiency budgets mandated by state regulators, providing relatively stable incentives compared to volatile wholesale market prices.
  • Peak Focus: Primarily aimed at reducing demand during the highest load hours of the year (usually summer afternoons).
  • Utility Resource: Utilities may count the aggregated load reductions from these programs towards their own capacity obligations in the ISO-NE market (effectively value stacking on the back end) or use them to meet state peak reduction targets.

While ConnectedSolutions is a major example, specific program names, incentive levels, and rules can vary by utility and state within New England. Always check with your local utility for the most current offerings.

Disclaimer: Incentive rates are examples based on recent program materials (~2023-2024) and can change based on utility filings and regulatory approvals.