Demand Response Programs
Background
Every large electric customer in New York State can choose to get paid for lowering electricity usage during periods of high-demand on the electricity grid.
The "Demand-Response" programs offers incentives to lowering electricity demand as a response to a notification.
In New York State, the Demand-Response programs are administered by the New York Independent System Operator (NYISO).
NYISO Website.
NYISO has four Demand Response programs: the Emergency Demand Response Program (EDRP), the Installed Capacity (ICAP) Special Case Resources (SCR) program,
the Day Ahead Demand Response Program (DADRP) and the Demand Side Ancillary Services Program (DSASP).
These programs offer differing terms and payments, and are open to all types of customers.
Participation requires a detailed understanding of the
program criteria, including how fast you must reduce
electricity demand, how much reduction you are
committing to, the duration of the reduction period, and
the payment terms. Click here for a NYISO Primer of the Demand-Response Programs.
Program Overview
The following are descriptions extracted from NYISO's Demand Response Programs Website.
| Program Name | Description |
| Emergency Demand Response Program (EDRP) | This program is a short-notice program relying on the ability of many participants to voluntarily reduce their electricity demand for a short period of time, in exchange for payment. Under energy shortage situations on the New York State power grid, participants are notified by NYISO to reduce power usage. Participating in each deduction event are voluntary. |
| ICAP Special Case Resources (SCR) | Participants in this program are required to reduce power usage and as part of their agreement and are paid in advance for agreeing to cut power usage upon request. Any under-performance results in an assessment of a penalty. To register for the program, participants commit to a load reduction of a minimum of 100 kW with 100 kW increments, when provided with a 21-hour advanced notice.. |
| Day Ahead Demand Response Program (DADRP) | This program allows sophisticated energy users to bid reduction in electricity usage, or "negawatts", into the Day-Ahead energy market similar to the large electricity generators. Reduction offers determined to be economic are paid at the price determined by the market and are not set by NYISO. |
| Demand Side Ancillary Services Program (DSASP) | This program provides retail customers that can meet telemetry and other qualification requirements with an opportunity to bid their load curtailment capability into the DAM and/or Real-Time Market to provide Operating Reserves and regulation service. Scheduled offers are paid the appropriate marketing clearing price for reserves and/or regulation. |
Direct Participation
Unless you are a large electricity user and understands the complex program requirements, participation in Demand-Response through an "Aggregation Provider" (Aggregator) is recommended. If you are a small electricity user, you are required to participate through an Aggregator to consolidate demands from many small users to reach the minimal level of participation level.
A list of Aggregators is available here.
Participation Through Utilities
Getting Involved with Demand-Response through Orange & Rockland (O&R)
O&R offers the Emergency Demand Response Program (EDRP) and the Day-Ahead Demand Response Program (DADRP).
The Emergency Demand Response Program (EDRP) is a short-notice program that pays electric customers to voluntarily reduce load during specific times when electric availability in New York could be jeopardized.
During these events, participants are expected, though not obligated, to either reduce energy consumption or transfer load to a qualifying on-site generator for a minimum of four hours.
To be participate in this program, your account must be capable of reducing load by at least 100 kW. For more information, contact Rick Struck, O&R's Director of Customer Energy Programs at 845-577-3835.
Visit O&R's EDRP website here.
The Day-Ahead Demand Reduction Program (DADRP) allows large energy users to bid their load-reduction capability, on a day-to-day basis, into New York's wholesale electricity market, where load reduction bids compete with generators' offers to meet the State's electricity demands.
If the load reduction bid is less expensive than a generator's offer to produce more electricity, it is accepted and the bidder is obligated to reduce load during the specified hours on the following day.
The basis of payment is determined by the difference between the metered load and a predetermined baseline amount during the same period.
To be participate in this program, your account must be capable of reducing load by at least one megawatt (one thousand kW) through load curtailment. For more information, contact O&R's Energy Management Administrator Rick Struck at 845-577-3835.
Visit O&R's DADRP website here.
New York State Electric and Gas (NYSEG)
NYSEG is offering CA$HBACK and CA$HBACK plus EDRP that reward businesses for reducing their electrical load during specific curtailment periods. CA$HBACK offer the participants the opportunity to voluntarily reduce electricity load for payment. Participants are not obligated to reduce electricity use each time CA$HBACK is implemented and there are no penalties.
CA$HBACK payments are typically 45 cents per kilowatt-hour (kwh) or more for each kwh not consumed.
CA$HBACK plus requires participants to reduce electricity load in exchange for a guaranteed payment. NYSEG will credit participant's bill based on the price per kilowatt hour (kwh) for the curtailment period and the number of kwh not consumed.
NYSEG customers who sign up for CA$HBACK plus must have a minimum of 100 kilowatts of curtailable load or "behind-the-meter" generation. They will receive advance notification of the need to reduce electricity use and must curtail load for at least four hours per request.
A CA$HBACK plus contract lasts 6 months. (The winter contract period is November through April and the summer contract period is May through October). A one hour test is required during the contract period to test participant's load reduction.
Customers using self-generation to reduce load must meet Department of Environmental Conservation regulations and permitting.
Contact NYSEG marketing representative to determine if CA$HBACK or CA$HBACK plus are right for you.
Visit NYSEG's CA$HBACK and CA$HBACK Plus website here.