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Demand Response Aggregators: Con Edison

Description of Utility Need

Due to Con Edison investments in AMI meters and Green Button Connect, all customers with an AMI meter are now eligible to participate in the Con Edison performance-based Rider T demand response programs with a minimum electricity use reduction commitment of 10 watts. There is now a need for third-party demand response aggregators to provide service to this newly enabled customer pool.

Expected Impact

Rider T demand response programs support distribution network peak load reduction (CSRP) and network contingency support (DLRP). Through reliable network peak load reduction at scale, this program can potentially defer the need for incremental distribution system capital investment.

Target Customers and/or Applications

All customers with an AMI meter are candidates for participation in Rider T demand response programs. This is a 1,000-fold increase (from approximately 3,000 to 3,000,000) in the eligible customer base. These customers are eligible to participate in the Rider T demand response programs without additional required customer-sided infrastructure investment.

Types of Partnerships and Solutions Being Considered

The Rider T demand response programs are technology agnostic and rely on a customer baseline (CBL) to estimate how much electricity a customer avoided using during demand response events. Actual metered electricity usage compared to the CBL is how customer performance is measured.

EVs are encouraged to participate, but please note that existing CBLs may not fully measure EV charging station behavior change performance.

Participants using fossil fuel-fired generators that do not have NY State DEC permits to operate for demand response participation are not permitted to participate. Certain permitted diesel generators can be used to meet demand response program commitments; however, usage of this equipment is capped at 20 percent of program enrollment.

Funding Pathways

This opportunity is funded through Rider T of the Con Edison electric tariff. Aggregators are eligible to be compensated for both the capacity provided through customer enrollment as well as performance during demand response events. In 2020, aggregators earned over $40M for electricity use reductions provided via these programs.

Background / Related Information

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