New York Utility Demand Response Programs

In addition to NYISO wholesale market programs, New York utilities (like Con Edison, National Grid, NYSEG, RG&E, Central Hudson, O&R) offer their own Demand Response programs. These often target local distribution network needs and operate under the state's Reforming the Energy Vision (REV) initiative, which encourages using DR as a grid resource.

These utility programs can often be "stacked" with NYISO programs like ICAP SCR, allowing C&I customers to earn multiple revenue streams from the same load reduction capability (subject to coordination rules).

Key Utility Program Examples (Focus on Con Edison)

Con Edison, serving New York City and Westchester, has some of the most established utility DR programs:

Con Edison: Commercial System Relief Program (CSRP)

• Goal: Reduce overall system demand on forecast peak load days, primarily during summer, to defer infrastructure upgrades.
• Type: Peak Shaving / Capacity
• Participation: C&I customers, often aggregated (50 kW minimum direct, can aggregate smaller sites).
• Events: Called with ~21 hours notice (day-ahead) based on high load forecasts. Typically 5-10 events per summer, lasting 4-6 hours, usually weekday afternoons/evenings.
• Compensation:
  • Capacity Payment: Paid monthly during the summer season (May-Sept) per kW pledged (e.g., ~$18/kW-month in most NYC networks, lower rates ~$6/kW-month in less constrained zones as of ~2023).
  • Performance Payment: Paid per kWh actually reduced during events (e.g., ~$1/kWh).
• Stackability: Yes, can typically be enrolled simultaneously with DLRP and NYISO SCR.
• Requirements: Interval meter, respond during called event windows. Baseline typically a 10-day average adjusted for weather.
• Penalties: No direct financial penalties, but payments are adjusted based on a performance factor. Consistent underperformance can lead to reduced future participation.

Con Edison: Distribution Load Relief Program (DLRP)

• Goal: Provide emergency load relief on specific, constrained distribution networks during contingency events (e.g., equipment failure).
• Type: Emergency / Distribution Reliability
• Participation: C&I customers in targeted network areas (50 kW minimum direct, aggregation possible).
• Events: Called on shorter notice when a local network issue occurs. Notice can be ~2 hours ("Planned") or even <10 minutes ("Immediate"). Can be called anytime, year-round, potentially including weekends/holidays, for up to 8 hours (sometimes longer windows). Event frequency depends on network issues (typically 0-5 calls/year).
• Compensation: Higher than CSRP due to critical nature.
  • Capacity Payment: Paid monthly (summer focus, e.g., June-Sept) per kW pledged. Tiered rates based on network priority (e.g., ~$25/kW-month in highest priority "Tier 2" networks, ~$18/kW-month in "Tier 1" as of ~2023).
  • Performance Payment: Same as CSRP (e.g., ~$1/kWh reduced).
• Stackability: Yes, can typically be enrolled simultaneously with CSRP and NYISO SCR.
• Requirements: Interval meter, ability to respond quickly (especially for Immediate calls). Baseline often 10-day average or Firm Service Level (FSL) for some aggregations.
• Penalties: Similar to CSRP - payments adjusted by performance factor. Repeated failure to respond can impact future enrollment.

Other Utility Programs & Initiatives

• National Grid & Other Upstate Utilities: Offer similar peak load reduction or peak shaving programs, though incentive levels may differ based on local needs (often in the $25-$50/kW-year range historically). Check specific utility websites for current offerings.
• Dynamic Load Management (DLM) Auctions: Driven by NY REV, utilities procure DR capacity through competitive auctions for multi-year contracts (Term-DLM, Auto-DLM). Aggregators bid to provide load relief at certain prices ($/kW). Auto-DLM requires faster response (<10 min) and commands higher prices. These programs offer longer-term revenue certainty compared to annual programs. Incentive rates determined by auction results (anecdotally ~$50-$100/kW-year for 3-year contracts).
• Non-Wires Alternatives (NWA): Utilities increasingly use targeted DR (and other distributed resources) as a "non-wires alternative" to defer or avoid traditional infrastructure upgrades, sometimes leading to specific DR solicitations in constrained areas.

Utility Program Comparison Summary (ConEd Example)

The ability to stack utility programs with NYISO programs makes New York a potentially lucrative market for C&I DR participants who can meet the requirements of multiple programs.

Disclaimer: Incentive rates and program rules are subject to change based on utility filings with the NY Public Service Commission. Always consult the specific utility's current program documentation and tariffs.