Con Edison launches demand response program for natural gas customers
The New York Public Service Commission recently approved a $5 million, three-year natural gas demand response pilot program put forth by Consolidated Edison Company of New York, Inc. (Con Edison).
While demand response (DR) programs, which help manage usage during peak demand periods, are relatively common in the electricity sector, they are not with natural gas. This is one of the first DR programs for natural gas.
Con Edison said natural gas demand on its peak day increased by more than 30 percent between 2011 and 2017. The company expects the peak to grow by an additional 23 percent during the next 20 years, driven by a preference for natural gas heat in new buildings and people switching from heating oil to natural gas. By the winter of 2023–2024, Con Edison estimates that its firm pipeline contracts will meet only 78 percent of its peak-day demand absent any new pipeline capacity. Thus, Con Edison is considering alternative measures, including DR, to reduce reliance on interruptible contracts so customers are served on the coldest days of the year.
For its pilot program, Con Edison proposed methods of natural gas DR that are similar to its existing electricity DR programs. For most residential and small business customers they will use a direct load control to adjust customers’ thermostats during peak natural gas demand days, with some financial incentives for participation offered. For larger customers, Con Edison proposes to achieve demand reductions through financial incentives alone.
Only a few other companies, including Southern California Gas Company and National Grid, have employed DR programs for natural gas, according to the Energy Information Administration.
