NY Public Service Commission approves Con Edison demand response program

The New York State Public Service Commission (PSC) recently gave Consolidated Edison Company of New York, Inc. approval to run a pilot program designed to reduce residential and commercial customer demand for natural gas.

Demand for natural gas in Con Edison’s service territory, which consists of Manhattan, the Bronx, parts of Queens and most of Westchester County, has increased substantially. This has led to significant increases in the peak day demand during the winter heating season for customers that require uninterruptable supply.

The $5 million pilot program aims to reduce demand over the next three years to negate the need for additional gas infrastructure, reduce carbon emission, decrease costs for consumers and reduce reliance on natural gas.

“Demand response has proven to be an effective tool to manage demand and save costs on the electric system,” Commission Chair John B. Rhodes said. “While some gas customers have been doing demand response for years, this program will enhance gas customers’ ability to reduce peak day demand. This pilot program will be among the first-of-its-kind in the country, and should provide valuable insights for energy system planning and for further demand reduction approaches of all gas utilities.”

The program will allow the marketplace and third-party demand response aggregators to work with customers to reduce consumption on peak days. The program consists of a pilot focused on large commercial and industrial customers and a pilot for residential and small commercial customers using customer-purchased smart thermostats.

The PSC also approved a gas energy efficiency program for Con Edison in July.