Peak load incentives for the expected surge in electricity demand this summer have been boosted by 60 percent over last year’s level in New York City.
The proposed incentive levels in 2014 are higher than similar demand response (DR) payments for voluntary power curtailment payments in 2013. 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 County. These new demand response payments were formally approved by the New York State Public Service Commission in mid-March.
This hypothetical example demonstrates the difference: In 2013, if a 1.4 million-sq-foot office building was 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.
When demand is extremely high, peak load alerts are issued by the NYISO. 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.
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 1 in order to participate in the June 1 program start date.