NYISO Demand Response Programs (New York)

The New York Independent System Operator (NYISO) manages New York State's electric grid and wholesale markets. NYISO features distinct market zones with varying prices, particularly the high-value Zone J (New York City). Demand Response programs are available through both NYISO (wholesale) and local utilities (retail).

C&I customers typically participate in NYISO programs via certified DR providers or aggregators.

A key feature in New York is the allowance of "dual participation," where a C&I load can often enroll in both a NYISO program and a local utility DR program simultaneously, provided rules for coordination and avoiding double payment are followed.

Key NYISO DR Programs for C&I

Installed Capacity - Special Case Resource (ICAP SCR)

• Administered By: NYISO (in coordination with utilities/aggregators)
• Type: Capacity/Emergency
• Goal: Provide load reduction capability to meet NYISO's capacity requirements and respond during peak conditions or emergencies.
• Participation: C&I loads (≥100 kW minimum per zone, can be aggregated) enroll as capacity resources via a certified DR provider.
• Response: Must curtail load upon NYISO dispatch, typically with at least 2 hours notice. Events usually occur on hot summer days or during grid emergencies and can last up to 4 hours. Testing is possible.
• Baseline: NYISO uses a specific baseline methodology (often a 5-day average type) to measure performance.
• Stackability: Yes, can often be dual-enrolled with local utility DR programs (like ConEd CSRP/DLRP). Coordination rules ensure NYISO events take priority or performance is measured net of utility calls to avoid double payment for the same MW reduction during overlapping events.
• Incentives: Earns capacity payments based on NYISO's ICAP market auction clearing prices for the specific zone. Zone J (NYC) prices are typically much higher than upstate zones (e.g., ~$19/kW-month in Zone J summer 2023 vs. single digits upstate). Annualized value can exceed $100k+/MW-year in NYC. Payment is adjusted by a performance factor based on actual delivery during events/tests. Energy payments are generally not provided unless market prices exceed a high strike price set by the participant.
• Penalties: Poor performance results in a lower performance factor, directly reducing capacity payments. Significant underperformance could lead to owing back payments.

Emergency Demand Response Program (EDRP)

• Administered By: NYISO
• Type: Emergency (Voluntary, Energy Payment Only)
• Goal: Provide additional, voluntary load reduction during NYISO-declared emergencies.
• Participation: C&I loads (≥100 kW, via aggregator or direct) who choose not to or cannot commit to SCR obligations can enroll on a best-effort basis.
• Response: Called during emergencies, typically after SCR resources. Voluntary response.
• Baseline: Similar methodology to SCR used to measure curtailment.
• Stackability: Cannot be enrolled as SCR for the same load simultaneously (it's one or the other). Might participate in utility programs when not called by NYISO.
• Incentives: Receives an energy payment only (no capacity payment). NYISO guarantees a minimum payment (historically $500/MWh) or the real-time market price (LBMP), whichever is higher, for verified load reduction.
• Penalties: None. Since it's voluntary, failure to respond simply means no payment is earned for that event.

Demand Side Ancillary Services Program (DSASP)

• Administered By: NYISO
• Type: Ancillary Service (Economic)
• Goal: Allow demand-side resources to provide operating reserves (like spinning reserves) or regulation services by bidding into NYISO's real-time markets.
• Participation: Primarily C&I sites with behind-the-meter generation or energy storage, or highly controllable loads. Pure load participation is less common due to technical requirements.
• Response: Must meet fast response times (e.g., seconds for regulation, minutes for reserves) and telemetry requirements (e.g., 2-6 second data for regulation) specific to the ancillary service being provided.
• Baseline: Performance measured against real-time dispatch signals via telemetry.
• Stackability: Complex. A resource might be an SCR and also offer into DSASP when not on emergency deployment, but careful coordination is needed.
• Requirements: Real-time telemetry (RTU) to NYISO, bidding via aggregator or scheduling coordinator.
• Incentives: Earns market-clearing prices for the specific ancillary service provided.

Link to Utility Programs

In addition to these NYISO programs, C&I customers in New York should explore programs offered by their local utility (e.g., Con Edison, National Grid). These often complement NYISO programs and allow for additional revenue stacking. Learn more about New York Utility DR Programs.

NYISO Program Comparison Summary

Disclaimer: Incentive values depend on specific auction results, location (zone), performance, and program rules. Always consult official NYISO documentation and your DR provider for current details.