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OPTION 2: Peak Reduction

Peak Reduction is designed to help NYPA manage the aggregate electrical demand of its customers at times of system peak load. NYPA contracts with qualifying customers located within the City of New York to reduce their load at NYPA's request.

Participation in the Peak Reduction option provides customers with monetary compensation. It also adds value to customer operations. By giving customers the opportunity to review and test their emergency plans and upgrade metering equipment, with NYPA's assistance.

Note: Customer participation during Peak Reduction events is required before any incentive payments will be made.

Option 2

Minimum KW


No minimum, but Load Reduction Commitment must be measurable

Curtailment method

On-site generation and/or interruptible loads


Generators require proper permitting by NYS DEC and NYC DEP


Within New York City (zone J only)

Curtailment period

June 1st – September 30th, Weekdays
between hours of 11 am - 7 pm


$25/kW per season based on verified performance of contract commitment.

Payments will be made at the end of the season in the form of a check or bill credit once performance has been verified.


Two hour notification with business day-ahead alert


Up to 15 events or 90 hours

  • Min. = 2 hours
  • Max. = 6 hours

Each participant is allowed one waiver per season.
If participant is unable to perform due to hardship, a prorated incentive may be given. Non-performance results in no incentive payment.




Review of hourly interval metering
data will validate performance

Required Equipment

Installed integrated hourly metering device

Cost of Equipment

Participant is responsible for cost of installation of metering equipment (if necessary)

Option 3a- Capacity & Energy - Low Risk



Option 1 Option 2 Option 3a Option 3b