Oct. 15, 2009 (readMedia) --
ALBANY, NY (10/15/2009)(readMedia)-- The New York State Public Service Commission (Commission) today approved programs to help reduce peak electric demand and emissions in Consolidated Edison (NYSE:ED) Company of New York, Inc.'s (NYSE:ED PRA) (NYSE:ED PRC) (OTCBB:CEDNM) (Con Edison) service territory, which in turn will help lower long-term utility costs borne by ratepayers and emissions in communities where certain power plants exist.
"Reducing Con Edison's peak load could potentially lead to lower emissions and prices by helping to defer the need to build new infrastructure," said Commission Chairman Garry Brown. "Our approval of these demand response programs will help improve the air quality of certain metro areas communities that have long been burdened by a concentration of power plants."
The Commission's approval of the demand response program specifically targets at least 50 megawatts in the Greenwood, Brooklyn area, considered to be an environmental justice community. In addition, as a result of the Commission's decision, no diesel-fired generation will be allowed within one-half mile of the generating stations located in environmental justice communities.
Environmental justice is defined as the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental law, regulations, and policies. Environmental justice efforts focus on improving the environment in communities, specifically minority and low-income communities, and addressing disproportionate adverse environmental impacts that may exist in those communities.
The Commission noted that Con Edison's system experiences peak demand for only a small number of hours a year and only during the summer months. By decreasing the highest peaks, the infrastructure needed and therefore, the expense of meeting peak demand could be significantly reduced. In response, Con Edison proposed four new demand response pilot programs:
-- Commercial System Relief Program for large commercial or industrial customers that can curtail load or bring emergency generation to reduce demand by a minimum of 50 kW on an individual customer basis, or 100 kW through aggregations. Customers able to curtail load when called upon will receive capacity reserve payment, and conversely if a customer is called and does not respond, the customer will be assessed a penalty. The program will target at least 50 megawatts in the Greenwood load packet, with a total program cap of 200 megawatts in the company's service territory.
