Hot Weather Leads to NYPA's Activation of Demand Response Program to Lower Electricity Use in NYC
NYPA Governmental Customers to Voluntarily Curb Electricity Use

Tom Rooney
(914) 390-8178

June 20, 2012


NEW YORK—With temperatures expected to top 90 degrees on Wednesday—the first day of summer—the New York Power Authority (NYPA) rolled out for the first time in 2012 a program that reduces electricity consumption in New York City on the highest-demand days of the air-conditioning season.

The activation of the Peak Reduction program followed NYPA’s issuing of a day-ahead notice on Tuesday of the expectation of the program being activated based on weather forecasts.  The Power Authority has also issued a day-ahead notice for an event on Thursday.

The Peak Reduction program can be activated up to 15 weekdays each year from June 1 to Sept. 30, and involves commitments by the City of New York and other NYPA governmental customers to lower electricity use at more than 80 locations in the five boroughs, such as subway stations, public schools, City University of New York buildings and police facilities.

In return for commitments such as shutting off non-essential lighting and equipment, limiting air conditioning and in some cases operating their own on-site power generators, participating NYPA customers receive $25 per kilowatt saved.  As in past years, the total payments are expected to come close to $1 million from the reduced energy consumption for the summer season.

“The New York Power Authority has provided incentive payments to some of New York City’s largest energy users since 1999—well over a decade of hot summers,” said Gil C. Quiniones, NYPA president and chief executive officer.  “Our Peak Reduction program contributes to the reliability of overall electricity service in New York City when usage spikes sharply on the hottest days of the year and the gap between electricity supplies and power demand narrows the most.  We are pleased to partner with various governmental customers in the city on this important endeavor, which complements other initiatives that the Power Authority is pursuing under Governor Cuomo, such as infrastructure improvements for enhancing reliability of electricity service and lowering electric bills, and stepped-up investments in energy efficiency.”

Quiniones noted that New York State’s summer peak demand can increase up to 80 percent above the average level of daily electricity use during the year, for consumption of an additional 15,000 megawatts (MW). (One megawatt is typically enough to meet the electricity needs of 800 to 1,000 homes.)  The daily period of activation of NYPA’s Peak Reduction program is limited to between two and six hours, from 11 a.m. to 7 p.m., and can cut power demand by about 30 MW.  In doing so, the program reduces use of older, less efficient power plants, whose generating output tends to be more costly.

The Peak Reduction initiative is one of several demand-response options the Power Authority makes available to its customers, including businesses receiving its economical power.  The other options include statewide initiatives sponsored by the New York Independent System Operator (NYISO), which manages the state’s electric power grid, as well as a demand-response program by Con Edison in the utility’s New York City service area.

The number of NYPA customers participating in these demand-response programs has grown from eight in 2000 to 26 in 2011, with the demand reduction increasing from almost 17 MW to close to 532 MW statewide.

Among the NYPA governmental customers’ facilities participating in the Authority’s Peak Reduction program in New York City are the City of New York Department of Environmental Protection, Department of Education, Department of Parks and Recreation and Police Department, as well as the City University of New York and the Metropolitan Transportation Authority.

The Peak Reduction program is one of the value-added initiatives that NYPA undertakes in meeting the electricity needs of public facilities in New York City under the long-term contracts that have provided hundreds of millions of dollars a year in savings to those customers from the economical power the Authority provides.

Throughout the year, the Power Authority also spurs major investments in energy efficiency and clean energy initiatives in the city and throughout the state.  In 2012, NYPA financed more than $186 million on energy-saving improvements at nearly 2,600 public facilities statewide, to lower their annual electricity bills by approximately $9 million and reduce greenhouse gas emissions by close to 36,000 tons a year

This was the third consecutive year that the Power Authority has set a record for its energy efficiency and clean energy projects, with the investments repaid from energy savings.  NYPA plans to provide financing of $800 million over the next four years in support of an Energy Efficiency Master Plan by Governor Cuomo to lower energy consumption in state buildings by 20 percent and lower energy use at county and local government facilities.

About NYPA:

■The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ■NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives.■It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ■Approximately 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state.■For more information,

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