Across the country, technological innovation and the increasing competitiveness of renewable energy resources are enhancing the way America generates, distributes, manages, and consumes electricity. New York State has taken a leadership role in the way our nation’s electrical grids will meet the future to ensure consumers benefit from the industry’s evolution.
CPower can help monetize your energy assets in the Empire State.
The State of the New York Market from The Current
The Change of Status Rule
Established in 2009 and updated in 2014, SCR’s Change of Status rule defines the criteria of a qualified change of load condition as defined in Section 2.17 of the NYISO Services Tariff. The rule’s intent has always been to negate credit for passive curtailment in cases where a participating organization no longer had load to curtail for demand response.
Consider a commercial organization that during the summer or 2020 operated at a fraction of 2019’s occupancy and was enrolled in DR for the summer of 2020. If the organization’s summer load was less than 70% of its baseline established in 2019, the organization would have likely faced heavy penalties since they no longer possess enough load to curtail and will underperform in the Special Case Resource DR program.
Now let’s look at that same organization’s predicament in 2021. In essence, they’re facing an inverse of what they experienced in 2020, whereby they may see reduced ACLs resulting from 2020’s load reductions.
If your organization falls into a similar predicament, contact your curtailment service provider (CSP) and ask them to provide a plan for navigating SCR’s Change of Status rule. A good CSP should be able to outline a set of actions aimed to minimize underperformance risks and maximize possible DR revenues.
Demand Response Programs in New York
Currently, there are several demand response programs being offered to commercial and Industrial organizations in New York.
SCR, CSRP, DLRP, DSASP can be stacked, meaning an organization may participate in more than one program and reap more revenue for using essentially the same curtailment practices.
In 2016, several New York Utilities began offering two new demand response programs in conjunction with the Reforming Energy Vision (REV):
Commercial System Relief Program (CSRP)
Distribution Load Relief Program (DLRP)
ConEd has been offering CSRP and DLRP since 2009/2010. The programs will continue to run in 2021.
NYISO’s Special Case Resource (SCR) program, the longest-running demand response program in NY, will also run in 2021 along with NYISO’s economic programs: the Day-Ahead Demand Response Program (DADRP) and the Demand-Side Ancillary Services Program (DSASP).
In 2021, New York Utilities (with the exception of PSEG-LI) will begin offering two new demand response programs alongside the CSRP and DLRP.
Term Dynamic Load Management (Term-DLM)
Auto Dynamic Load Management (Auto-DLM)
These new programs will function similarly to CSRP and DLRP, but will be procured by utilities via contract with CSPs or individual customers for terms ranging from 3-5 years as opposed to an open tariff with annual enrollment.
The Emergency Demand Response Program (EDRP) is very similar to the SCR program, except it is voluntary and participants only receive energy payments
and no capacity payments.