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Utility Binder

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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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    MMeessssaaggeeffrroommtthheeCChhaaiirrmmaann

    DDeeaarreenneerrggyyccoonnssuummeerrss......

    electricity

    natural gas TTaabblleeooffCCoonntteennttssRReeaaddoonnttoo lleeaarrnnaabboouutt::EEnneerrggyy CCoommppeettiittiioonn 22

    HHooww tthheessyy sstteemm ww oorrkk ss 33

    UU nnddeerrssttaanndd iinnggyy oouurrbbiillll 44

    RReelliiaabbiilliittyy 55

    CC oonnssuummeerrpprroo tteeccttiioonnss 66

    AAnniinnffoo rrmmeedd cchhoo iiccee 77

    HHooww ttoo ccoomm ppaarree 88

    GG rreeeennPPooww eerr 99

    EEnnvv iirroonnmmeennttaall DD iisscclloo ssuurree 1100

    RReenneeww aabb lleePPoo rrttffoo lliioo SSttaannddaarrdd 1100

    CC oonnssuummeerrAAssssiissttaannccee 1111

    IInnNN eeww YYoo rrkk ssccoommpp eett ii tt iivveeeenneerr ggyymmaarr kk eett ,, yy oouu

    ccaanncchhoooosseeyy oouurrssuupppplliieerrooffeelleeccttrr iicciittyy aanndd nnaattuurraall

    ggaass iinnsstteeaadd oo ffbbuuyy iinnggeenneerrggyy ssuuppppllyy ffrroomm yy oouurr

    uuttiilliittyy..YYoouuccaannssww iittcchhttoo aannEEnneerrggyy SSeerrvviiccee

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    tthhaattww iillllggiivveeyy oouubbeetttteerrvvaalluueeffoo rryy oouurreenneerrggyy

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  • 8/14/2019 Utility Binder

    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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  • 8/14/2019 Utility Binder

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  • 8/14/2019 Utility Binder

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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

    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

    $11,000

  • 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:

    [email protected]

    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

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    11/kWh

    $1,843

    Avg. Payment

    Total Payment

    11/kWh

    $2,597

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    $2,292

    11/kWh

    $2,979

    11/kWh

    $2,210

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    $3,128

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    $5,292

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    $5,860

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    $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


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