| Date post: | 30-May-2018 |
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8/14/2019 Utility Binder
1/14
UseYourPowerToChoose
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8/14/2019 Utility Binder
2/141-888-Ask-PSC1orwww.AskPSC.com
1
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3/141-888-Ask-PSC1orwww.AskPSC.com
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8/14/2019 Utility Binder
4/14
3
3
1-888-Ask-PSC1orwww.AskPSC.com
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6/14
5
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8/14/2019 Utility Binder
9/14
NEW YORKSTATE ENERGY RESEARCHAND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER PAGE 1
Get in the Game with Three Electric
Load-Management ProgramsYOURUTILITYORENERGY SERVICE PROVIDERCAN HELP YOU WIN BIG 2004 SEASON
During summer
2003, more than
$7.2 million was
paid to over 140
commercial,
industrial and
multi-family
residentialcustomers for
reducing their
peak electricity
consumption by
700 MW.
It Pays to Play...
New York State has three load-management programs that provideopportunities for every electric customer.
Each utility or energy service provider in
the State can help you get paid for
curtailing your electric load during electric
grid high-demand periods. These
programs offer differing terms and
payments, and are open to all types of
customers. To see which one, or
combination of these programs can benefit
you, contact your electric supplier,
program provider, or the organizations on
page 3.
EmergencyDemand Response
Program(EDRP) is a short-notice
program relying on the ability of many
to voluntarily reduce their demand for
a short period of time, in exchange for
payment.
Day-Ahead Demand Response
Program (DADRP) is a customer-
initiated economic bidding program,
where participants offer their load
reduction into the wholesale market a
day in advance.
Installed Capacity Special Case
Resources (ICAP SCR) is a reserve
capacity program that contracts
resources to meet NYISO supply
requirements over a specified contract
period.
These load management programs pay
participants, while providing all New York
State electric customers with crucial grid
stability during times of high electricity
demand and helping to prevent extreme
market prices.
SUMMER2003 EXPERIENCE
A variety of customers, large and small,
from many sectors, took part in these
valuable programs last summer. Although
most pledged 1,000 kW or less, several
reduced their electricity consumption by
over 40,000 kW on just 2-hours notice.
Steel foundries, cement factories, andpaper mills found these programs worth-
while. But even more diverse sectors, like
cheese producers, wineries, scrap yards,
and apartment buildings reduced their
electricity consumption during certain
periods, and were paid for doing so.
More than $7.2 million was paid to over
1400 commercial, industrial, and multi-
family residential customers for reducing
their peak electricity consumption by 700
MW.These commitments helped to avoid
jeopardizing the States electric grid
stability. Participants understood just how
important their participation was: The
program helps to keep prices reasonable
during high electric demand, said one
satisfied participant. Another noted: We
are aware of the critical situation that
could develop...without programs such as
these. They saw the inherent value in
developing good energy managementhabits.
NEW FOR2004
For 2004, you too can get in the game.
Join the customer load management team
that plays a role in achieving New York
States energy goals.
Three Electric Load-
Management Programs
George E. Pataki, Governor
8/14/2019 Utility Binder
10/14
NEW YORKSTATE ENERGY RESEARCHAND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMERPAGE 2
EMERGENCY DEMAND RESPONSE PROGRAMEmergency Demand Response Program
(EDRP) pays retail electricity customers to
reduce load during specific times when
electric service in New York State could be
jeopardized. During these declared
events, participants are expected, thoughnot obligated, to either reduce electricity
consumption and/or transfer load to an on-
site generator for a minimum of four
hours. During these emergency program
events, performance is based on how much
metered load is reduced.
NOTIFICATION: Usually, a program pro-
vider will give notice the day prior to an
expected emergency program event.
When the program is activated, partici-
pants receive a confirmation noticeindicating that participation is needed;
providers will generally be able to provide
this notice two hours prior to when an
event starts.
PERFORMANCE: Metered load, during the
event hours, is compared with a customer
baseline (CBL, a statistical estimate of
how much electricity would have been
used during the same time period.) The
difference between metered load and CBL
is the basis for payment. Since this pro-
gram is strictly voluntary, there is no
obligation to reduce load when an emer-
gency event is declared; similarly, there is
no penalty for non-performance.
PAYMENT: Performance during emergency
program events is measured on an hourly
basis and payment is computed on the
higher of either $500/MWH, or the
wholesale electricity price in the
customers area, during the time of the
event. Exact payment arrangements differ
by program provider.
NEWFOR2004
EDRP has been extended throughOctober 31, 2005.
EDRP event notification has beenseparated from ICAP-SCR events. Ifyou sign up for EDRP, you cannotparticipate as an ICAP Special CaseResource. EDRP participants arenotified after ICAP-SCR resources
have been called, if additional loadreduction is necessary.
SUMMER2003 EXPERIENCE
More than $7.2 million was paid toemergency and special-case resourceprogram participants for two summerevents, on August 15 and August 16,2003.
Enrollment in EDRP totaled over1300 participants and 67% of 2002
participants re-enrolled for summer2003.
CUSTOMERQUESTIONS FORPROVIDERS
Is there a minimum loadreduction requirement?
What CBL options are offered?
How and when will a customerbe notified of an opportunity tocurtail?
If use is curtailed, when does
payment occur? What services are available to
encourage participation?
Is NYSERDA financialassistance available to help inpurchasing load curtailmentequipment?
What are the requirements foron-site generators?
NOTICE
This informational brochurewas prepared by NeenanAssociates for NYSERDA asan introduction to NYISOsDemand Response Programs.
Neither NYSERDA, itsmembers, nor any personacting on their behalf: (a)makes any warranty, expressor implied, with respect to theuse of any information,
apparatus, method or processcontained, described, orreferred to herein or that suchuse may not infringe privatelyowned rights; or (b) assumesany liabilities with respect tothe use of, or for damagesresulting from the use of, anyinformation, apparatus,method or process contained,described or referred to herein.
The details in this NYSERDApublication are accurate as ofthe time of printing, but aresubject to change. For final
program rules and procedures,contact the Market RelationsDepartment of NYISO: (518)356-6060 or check the NYISOwebsite: www.nyiso.com/services/documents/manuals.
As with any market, a certainlevel of risk is associated witha transaction. To effectivelyassess risk of a transaction or
bid, a participant shoulddevelop a familiarity andknowledge of the market andits principles. Analysissupporting the calculation of
potential benefits referencedherein is available atwww.bneenan.com.
Summer 2003 Payments for1MW EDRP Load Reduction
Values shown are estimates of program payments
J
F
I
G
C
E
K
D
H
B
A
5/kWh
$11,000
Avg. Payment
Total Payment
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000Values shown are estimates of program payments
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K
D
H
B
A
5/kWh
$11,000
Avg. Payment
Total Payment
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
5/kWh
$11,000
8/14/2019 Utility Binder
11/14
NEW YORKSTATE ENERGY RESEARCHAND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER PAGE 3
DAY-AHEAD DEMAND RESPONSE PROGRAM
This year, we
plan to get
involved in
DADRP. The
investment in time
and effort we made
to participate in
last summersEDRP events
taught us what we
need to do to
reduce load.
Day-Ahead Demand Response Program
(DADRP), offers retail electricitycustomers a chance to bid load reductioncapability in New York States wholesaleelectricity market. To participate,
companies bid their load reductioncapability, on a day-ahead basis, intothe wholesale electricity market, wherethese load reduction bids compete withgenerators offers to meet the Stateselectricity demands. If the load reductionbid is a less expensive alternative than agenerators offer, it is accepted and thebidder is scheduled to reduce load duringthe hours specified the following day.
The bid amount, term, frequency ofsubmitted bids and use of generation
may be subject to some restrictions, basedon each program providers rules andregulations.
NOTIFICATION: When a curtailment bid isaccepted, the program provider notifiesthe customer of the scheduled loadcurtailment.
PERFORMANCE: Participant metered loadduring the event hours is compared with acustomer baseline (CBL, a statisticalestimate of the amount of electricity thatwould have been used during the same
time period.) The difference between thetwo is determined to be the level of loadcurtailment and is the basis of payment.Since a load reduction bid was accepted inthe day-ahead wholesale electricitymarket, participants are obligatedto meetthe posted load-reduction schedule. Anyshortfall will be charged the higher ofeither the day-ahead, or spot-market price.
PAYMENT: Customer performance duringscheduled load reductions is calculated onan hourly basis, at the wholesale price for
electricity in the day-ahead market, duringthose hours scheduled. Participants mayspecify a minimum payment, called thecurtailment initiation cost, as a conditionfor being scheduled for one or more hoursin a specified block of consecutive hours.Generally, in such cases, the full block isscheduled and the participant receives thehigher of the curtailment initiation cost orthe hourly locational-based marginalprices times the scheduled load.
NEWFOR2004
DADRP service is available fromprogram providers other than yourelectricity commodity provider.
SUMMER2003 EXPERIENCE
More than $100,000 in paymentswas distributed among the 27day-ahead program participants.
1,752 MWH of load reduction bidswere accepted over a wide range of
hours and days.
CUSTOMERQUESTIONS FORPROVIDERS
What kind of bidding options areoffered?
What are the frequency andduration requirements for bids?
How long are the bids good for?
If a participant fails to curtail,what is the penalty and when arethey notified of the amount?
For more information:New York State Energy Research and Development Authority (NYSERDA)
toll-free at (866) NYSERDA or (866) 697-3732 or visit NYSERDAs website
at www.nyserda.org or e-mail [email protected]
New York State Public Service Commission toll-free at (877) 661-9223 or on
the web: www.AskPSC.com or www.dps.state.ny.us/eschoice.htm
New York State Department of Environmental Conservation (DEC) at
(518) 402-9167 or visit the Regional Environmental Permitting page on the
web at www.dec.state.ny.us/website/dcs/regions/state.htm
New York Independent System Operator at (518) 356-6060 or via e-mail:
Summer 2003 Potential Payments for 1MWDADRP Load Reduction Bid at $100/MWh
Values shown are estimates of program payments
J
F
I
G
C
E
K
D
H
B
A
11/kWh
$1,843
Avg. Payment
Total Payment
11/kWh
$2,597
10/kWh
$2,292
11/kWh
$2,979
11/kWh
$2,210
10/kWh
$3,128
10/kWh
$5,292
10/kWh
$5,860
9/kWh
$5,926
10/kWh
$15,559
10/kWh
$16,760Values shown are estimates of program payments
J
F
I
G
C
E
K
D
H
B
A
11/kWh
$1,843
Avg. Payment
Total Payment
11/kWh
$2,597
10/kWh
$2,292
11/kWh
$2,979
11/kWh
$2,210
10/kWh
$3,128
10/kWh
$5,292
10/kWh
$5,860
9/kWh
$5,926
10/kWh
$15,559
10/kWh
$16,760
8/14/2019 Utility Binder
12/14
NEW YORKSTATE ENERGY RESEARCHAND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMERPAGE 4
INSTALLED CAPACITY-SPECIAL CASE RESOURCES
Installed Capacity-Special Case
Resources program pays retail electricitycustomers to provide their load reductioncapability for a specified contractperiod.Program participants receive payments for
an agreement to curtail usage during timeswhen the electric grid could bejeopardized. Based upon system conditionforecasts, participants are notified tocurtail this subscribed capacity, eitherthrough the use of on-site generation and/or reducing electricity consumption to afirm power level. Any under-performanceresults in an assessment of a penalty.To register for the program, participantscommit to a load reduction of a minumumof 100 kW with 100 kW increments,
subject to a one-hour verification eitherthrough an actual event or test to be
