In the News
ConsumerPowerline offers energy savings in N.Y.Reuters News
March 31, 2006
NEW YORK, March 31 (Reuters) - ConusmerPowerline, an energy management firm, will offer more than 100 megawatts of power into New York's summer demand response program on Friday.
In the spring and the fall, New York Independent System Operator, which operates the state's power grid, seeks bids from energy users in New York City to curtail energy consumption during times of potential grid crisis.
The grid operator pays the winning bidders for joining the program and pays them more for curtailing energy usage if called upon over the next six months.
Bidders not selected in or not participating in the six-month spring and fall auctions, known as the summer- and winter-strips, can participate in the NYISO's monthly auctions.
ConsumerPowerline brought together hundreds of energy users willing to participate in the demand response program, including Morgan Stanley, Starwood Hotels and Macy's Department Stores, to make its bid.
Over the past four years, ConsumerPowerline has paid customers more than $15 million to participate in programs like New York's demand response program.
Since the grid operator usually provides a day's notice before implementing the program, the participants can prepare to reduce their energy usage while not affecting the comfort of their tenants by switching to on-site power generators, shutting off non-essential equipment and precooling or heating their facilities.
ConsumerPowerline is also signing up midsize businesses in the city to evaluate whether they would save money on the capacity portion of their power bill.
Historically, about 20 percent of a consumer's annual electric supply bill - the capacity portion - is determined in the one-hour of the one-day the entire system peaks - usually during the summer.
In that one-hour, whatever a consumer is using determines their load exposure, and sets their installed capacity tag for the year.
The largest consumers using more than 1,500 kilowatts at peak have meters to calculate their actual usage. However, most mid-sized businesses receive a generic tag from the utility based on facility type and sizes, forcing efficient energy users to pay more than they should while less efficient users pay less.
Energy management firms like ConsumerPowerline can evaluate whether businesses can improve their energy usage and whether it makes economic sense to request a meter.
((Reporting by Scott DiSavino, editing by John Picinich; scott.disavino@reuters.com; Reuters Messaging: scott.disavino.reuters.com@reuters.net; +1 646 223 6072))