New York State PSC finalizes demand response programs for National Grid

The New York State Public Service Commission finalized plans to update their gas demand-response programs in National Grid’s service territories.

Natural gas demand-response programs provide an opportunity for consumers to play a significant role in the operation of the natural gas grid by reducing or shifting their usage during peak periods in response to financial incentives. These programs are being used as options for balancing supply and demand.

These programs are designed to reduce gas consumption during cold-weather and peak-gas usage events during the winter heating season in National Grid’s downstate service territories for residential and commercial customers and to implement the same programs in National Grid’s upstate service territory.

These new changes would make some 1.7 million residential and small commercial customers in National Grid’s natural gas service territory statewide eligible to participate in the “bring your own thermostat” or BYOT program. Further, 13,300 commercial customers in National Grid’s natural gas service territory statewide will be eligible to participate in the performance-based gas demand reduction programs.

“In keeping with our nation-leading clean energy mandates, our bottom-line goal is to reduce natural gas consumption and make our utilities more energy efficient,” Commission Chair Rory Christian said. “For gas service areas that are experiencing system-wide gas supply constraints, the reduction in peak-day and peak-hour gas usage from existing customers improves the gas utility’s ability to maintain system reliability for firm customers during peak winter-heating events.”

The commission found it reasonable to continue to operate and expand such programs in utility service territories with a history of implementing these programs cost-effectively.