Brooklyn-Queens Demand Management
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1 Brooklyn-Queens Demand Management Targeted Demand Management Damei Mahama
2 Agenda About Con Edison Non-Wires Solutions: BQDM Overview BQDM Incentive Payments & Performance Verification Next Steps 2
3 About Consolidated Edison Customers Infrastructure Service Territory Electric 3.3 million One of the largest underground systems in the world All 5 boroughs and Westchester County Gas 1.1 million 4,333 miles of gas mains and services 3 out of the 5 boroughs and Westchester County Steam 1,760 Largest district steam system in the world Manhattan below 96 th Street 3 3
4 Non-Wires Solutions Traditional approach: build capacity based on forecast Load Upgraded Infrastructure Capacity Infrastructure Capacity Load Forecast Time 4
5 Non-Wires Solutions Non-wires solution approach: lower forecast through EE/DM to defer upgrade Load Upgraded Infrastructure Capacity Deferral Infrastructure Capacity Load Forecast Load Forecast with EE Time 5
6 Non-Wires Solutions: BQDM BQDM Program BQDM Geography Strong peak growth in three networks in Brooklyn-Queens BQDM Program $200 million budget Defer infrastructure upgrade through nonwires solutions. 6
7 The BQDM Challenge 12 Hour need in Summer 7
8 BQDM Demand Reduction Goals Total Customer Side Solutions 9 MW 23 MW 9 MW 41 MW Utility Side Solutions 3 MW 8 MW - 11 MW Total 12 MW 31 MW 9 MW 52 MW 8
9 How Do We Procure Resources? Utilize existing programs Partnerships with market players RFI market solicitations Request for Proposals Auction Agreements directly with customers 9
10 BQDM Demand- Side Resource Portfolio MW Effective MW of resources calculated based on Technology, customer, and load curve characteristics Demand reduction duration Sample network 2016 peak day load curve Hour 1 Hour 8 Hour 2 Hour 4 Hour 2 Hour 1 Hour Hour 6 Hour Hour 1 Hour Hour Hour 10
11 Solutions For All Customers Residential Multifamily Large Commercial & Industrial Small Commercial 11
12 BQDM CUSTOMER, UTILITY SIDE SOLUTIONS PORTFOLIO Summer 2018 Outlook ACRONYMS DR Demand Response CHP Combined Heat and Power DMP Demand Management Program CVO Conservation Voltage Optimization C&I Commercial and Industrial Load Relief (MW) Hour Ending (Design Peak Day) Thermostat Anticipated Thermal Storage Anticipated Battery Storage Anticipated CHP Anticipated Solar Anticipated Fuel Cell Anticipated Energy Efficiency Anticipated DMP Committed Thermostat Committed CVO Committed Utility Storage Committed Battery Storage Committed DR Committed CHP Committed Solar Committed Fuel Cell Committed Energy Efficiency Committed Committed (Low Case) TOTAL 2018 NEED 12
13 BQDM Incentives and Performance Verification Incentives Upfront Incentives Performance based Partial Payments (Upfront + Performance) Measurement and Verification Pre-determined estimated savings + bag-and-tag Measurement against baseline to determine actual reduction Direct measurement of technology solutions 13
14 BQDM Securing Against Underperformance To secure against underperformance, BQDM contracts have measures in place such as: Requesting upfront collateral Retaining and deducting penalties from incentives 14
15 Residential Direct Install Lighting Upfront Incentives Pre-determined demand reduction savings Pre-and post-inspections/ Tag-and-bag 16
16 Demand Response in BQDM Hourly Demand (MW) Demand Response Example Hour of Event Day Baseline Demand curve with Demand Response DR provides demand relief during a targeted timeframe Hour of Event Day Incentives paid based on reduction during targeted timeframe Bonus potential if exceeds demand reduction requirement Measurement and verification of demand reduction utilizing baseline methodology 17
17 Fuel Cells and Combined Heat and Power Partial Incentive with Milestones Combination of Upfront and Performance Based Incentives Measurement and Verification of operation and reductions during required period 18
18 Brooklyn Queens Market Characterization Study Extensive metering in several Multi-Family In-Units, Common Areas and Small Businesses. Better understand how and when customers in this network are using electricity. Able to apply our knowledge and data to supplement future non-wire solutions efforts. 20
19 Next Steps Continued efforts to achieve load reduction while enhancing the customer experience. Continue M&V to verify performance of non-wires solutions. Continuous engagement with market partners. Apply lessons learned to future non-wires solutions. 21
20 Thank You! 22
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