NYSERDA AND NYSEG TEAM UP ON
INNOVATIVE
LOAD-CURTAILMENT INITIATIVE
Release: Immediate, September 11, 2001
Contact: Tom Collins, NYSERDA
(518) 862-1090, ext. 3250.
Albany, NY – The New York State Energy Research and Development
Authority (NYSERDA) has teamed with NYSEG on an innovative electricity
load curtailment program. Called C.A.$.H. BACK, the program is designed
to maintain the reliability of the State's power grid during high-use
periods, while also allowing large commercial/industrial and institutional
electricity customers in NYSEG's service area to reap financial benefits
for managing energy use.
"Identifying areas where we can achieve load curtailment
during peak demand periods is critical to maintaining the integrity
of New York's power grid as well as helping customers manage their
energy costs," said NYSERDA President William M. Flynn. "Energy
efficiency and innovative curtailment efforts such as C.A.$.H. BACK
will free-up electricity supply while minimizing customers' exposure
to market price fluctuations." NYSERDA is providing financial
support through its New York Energy $mart program toward the implementation
of C.A.$.H. BACK.
"The C.A.$.H. BACK program – the most advanced load
curtailment program in the State – is a tremendous opportunity
for our business customers to increase their bottom lines, while
helping to maintain the reliability of the state's power system
for all New York State residents," said Ralph Tedesco, NYSEG
President. "The program works for our customers, the environment
and NYSEG."
During the summer months in New York State, the demand for electricity
typically peaks on hot, humid days when commercial cooling equipment
and air conditioners operate at full capacity. Load curtailment, or
the elimination of electricity demand, can be achieved by idling non-essential
systems, optimizing equipment efficiency, or through on-site back-up
power generation that eliminates demand from the grid.
Under the C.A.$.H. BACK program, eligible customers can choose to
curtail load in either or both of two scenarios: in response to an
emergency signal from the New York Independent System Operator (NYISO)
indicating that statewide demand is approaching utilities' capacity
to supply electricity; or in response to rising wholesale electricity
prices. The NYISO monitors the statewide power grid, and coordinates
electricity purchases with utility companies to ensure adequate supplies.
When curtailment is deemed necessary, customers that curtail are paid
a fair-market price by the NYISO for each curtailment.
NYSEG provides special equipment that customers can use to receive
load curtailment signals and to monitor their energy use, as well
as to track the daily wholesale price of electricity. NYSEG also works
with customers to help them monitor their electricity use and to develop
load profiles, which are needed to devise curtailment strategies.
Since it was implemented in June, the program has been successful,
according to officials from NYSEG and NYSERDA. During a three-day
period in early August, for example, NYSEG customers curtailed a total
of 45 megawatts each day – a sizable portion of the State's total
curtailment – in response to emergency signals issued by the
NYISO during a prolonged heat wave.
NYSERDA is a public-benefit corporation established by the State
Legislature in 1975 to address the State energy and environmental
challenges in ways that also benefit the economy. NYSERDA's New York Energy $martSM program
is financed by a System Benefits Charge established by the New York
State Public Service Commission on the State's investor-owned utilities
to ensure that important research and development and energy efficiency
services continue during the utilities' transition to competition.
NYSEG is a subsidiary of Energy East Corporation [NYSE:EAS], a super-regional
energy services and delivery company in the Northeast. NYSEG serves
825,000 electricity customers and 250,000 natural gas customers across
more than 40% of upstate New York. By providing superior customer
service, promoting competition and focusing on growth, NYSEG will
continue to be a valuable asset to the communities it serves. For
more information about NYSEG, visit the company's Web site at www.nyseg.com.
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