Press Releases
State of Massachusetts selects ConsumerPowerline to manage energy resources for 19 key facilitiesRapid Implementation of Energy Management Program Expected to Save Taxpayer Dollars and Help Keep the Lights on in New England this Winter
BOSTON, February 15, 2006 - The impact of Hurricane Katrina is still roiling the national energy markets, and as such, Massachusetts faced the threat of rolling blackouts this winter. To protect consumers and commercial energy users statewide, the Massachusetts Division of Capital Asset Management (DCAM) has selected ConsumerPowerline (CPLN), a for-profit energy consumer advocacy organization, to immediately step in and manage grid reliability programs for 19 government facilities including universities, hospitals and correctional facilities statewide- turning these buildings into 'virtual power plants' that will help keep the lights on for thousands of Massachusetts residents and businesses in the event of a power crisis.
Not only will these facilities contribute in a real way to keeping the lights on this winter, but due to an innovative program available through Independent System Operator of New England (ISO-NE), the state entered into a contract with ConsumerPowerline. ConsumerPowerline will upgrade, where needed, the facilities' equipment including new metering and monitoring equipment that will vastly improve data flow and real-time decision-making. CPLN will also pay each facility for its willingness to support the grid in crisis mode by activating the diesel-fuelled emergency generators located at each site.
The Independent System Operator of New England (ISO-NE), a private membership organization that operates the grid for all electricity market participants, decided to establish an energy reliability market due to unstable natural gas and electricity supplies threatening power outages. These markets were designed to ensure that there is no disruption in the flow of power to consumers in times of a power crisis by creating financial incentives for large energy users to reduce consumption and create 'negaWatts' that can be 'sold' back to the grid lowering the need to turn on very expensive 'peaking plants.'
Because Katrina gave little warning of either its ferocity, or its impact on the market, the New England grid operators found it necessary to get federal approval (through Federal Energy Regulatory Commission) to alter the local power market structure on very short notice. To deal with the changes in the market structure and the potential disruptions in the generation and distribution of power statewide, The Massachusetts Division of Capital Asset Management (DCAM) issued a request for response in late December to implement a Demand Response Winter Supplemental Program by January 16, 2006. After a competitive process, DCAM selected ConsumerPowerline to implement the program-which included selling the extra energy supply back to the New England power grid. Under terms of the agreement, DCAM will not "pay" ConsumerPowerline for its services; instead, the State will share revenues realized by the program with the company.
"Massachusetts' commitment to move on a dime is surpassed only by their follow through. State facilities are often a combination of residential, commercial and industrial properties with complex physical, human, financial and contractual opportunities and constraints," said Michael Gordon, founder and president of ConsumerPowerline." "DCAM has managed these opportunities and constraints in such a manner that they have more than delivered on the promise identified by the Agency one month ago. Now, ConsumerPowerline and the state will deliver results for the grid. Our goal is to help the state of Massachusetts keep the lights on, and earn revenues by providing load reductions in a crisis," Gordon added.
"We were able to meet the aggressive launch schedule largely due to the tremendous help and support we received from DCAM staff from headquarters to the individuals at each facility. Our entire team was very impressed by their commitment, knowledge and willingness to go the extra mile to resolve any and all challenges," said Chelle Izzi, Director of Asset Services at ConsumerPowerline.
The program calls for ConsumerPowerline to create an energy management strategy for 19 state facilities including:
• Worcester State Hospital, Worcester;
• Massachusetts Correctional Institute Shirley;
• Souza Baranowski Correctional Center, Shirley;
• The Massachusetts Treatment Center, Bridgewater,
• Department of Corrections, Old Colony Correction Center, Bridgewater
• Department of Corrections Boston Pre-release Center, Roslindale
• Department of Corrections, MCI Center, Norfolk
• Department of Corrections, Pondville Correctional Center, Norfolk
• Department of Corrections, MASAC, Bridgewater
• Department of Corrections, Bay state Correction Center, Norfolk
• Department of Corrections, Bridgewater State Hospital, Bridgewater
• Department of Public Health, Tewkesbury State Hospital, Tewkesbury
• Department of Public Health, Lemuel Shattuck Hospital, Jamaica Plain
• Massachusetts State Police Academy, Braintree
• Essex County Sheriff's Department, Middleton
• Department of Youth Services, Allen Hall, Westborough
• University of Massachusetts, Amherst
• Department of Corrections, MCI Plymouth, Plymouth
• Department of Corrections, Cedar Junction, Walpole
The program entails providing a reliable number of megawatts that the State can curtail during a power emergency. CPLN will help the State to sell this excess capacity back to the market.
"Massachusetts is looking for a variety of ways to conserve energy, especially this winter when natural gas supplies are low. The demand response program is but one innovative response to the threat of rolling blackouts and a winter electricity crisis period.
By implementing the program at many different state facilities, we will be able to protect our citizens, generate new revenues and be smart stewards of our energy consumption and the environment," said Mark Nelson, Deputy Commissioner for DCAM. "When the Commonwealth heard of the Demand Response Winter Supplemental Program, we immediately began the process of putting it in place. ConsumerPowerline showed an ability to swiftly and completely establish a complex demand response program that would serve the needs of the State."
Under the State's agreement, participating facilities will receive revenues from the sale of excess power. Enrollees in the State's energy curtailment program will be provided with additional services for their participation including:
• detailed site assessments that uncover curtailment and energy management opportunities beyond generator loads;
• the crafting of sustainable curtailment plans with little or no impact on occupants' comfort;
• integration of the facilities' control systems with market-response load management strategies that prepare their facilities to profit from New England's expected move to locational-based pricing; and
• creation of innovative incentive structures that align incentives between endusers, facility managers and the markets to encourage broader participation in demand response.
"This program is just the tip of the iceberg with respect to conserving energy supplies and protecting taxpayers," said Mark Nelson, DCAM. "We will expand this program to include as many facilities as possible, shedding load when needed, summer and winter. It's easy for our facility mangers to execute this program, and it earns them extra funds for upgrading their buildings."
"By aggregating huge pools of electricity from participants, ConsumerPowerline is able to create a 'virtual power plant' that the State can tap into on a half hour's notice," Mr. Gordon added. "Most importantly, this represents a true effort on the part of the Massachusetts government to protect the State while saving taxpayers vast sums of money."
About ConsumerPowerline
ConsumerPowerline (CPLN) (www.consumerpowerline.com) provides strategic energy asset management (SEAM) to its customers under an aligned incentive model while seeking to transfer power and financial returns to the end user. ConsumerPowerline's products and services help its customers pay the least for energy, get the most for energy they buy, and earn the most for what they can reduce. The firm is unique in how it approaches the market - using deregulated market opportunities to first create new revenue for customers. This new income, and the accompanying new information, facilitates customers achieving a lot more a lot sooner. Among the firms comprehensive strategic services are energy curtailment services, engineering, strategic commodity purchase and industrial procurement. These services include advisory plans for companies on how to manage their energy use in times of 'grid crisis,' and to sell the results of this managed use (reduced consumption at emergency moments) back to the local and regional energy markets.
The firm's clients include: CB Richard Ellis, Morgan Stanley, Macy's, Starwood Hotels, Hines Property Management, Forest City Ratner Corporation, Co-op City, Macklowe Properties, RFR Realty, New York Presbyterian Hospital, Newmark Properties, Douglas Elliman Property Management, Cooper Square Realty, Wentworth Management, and dozens of other substantial end-users of energy.