Peak Demand Reduction Program
Activated by N.Y. Power Authority Wednesday for Participating
Customers in NYC
June 27, 2007
FOR IMMEDIATE RELEASE
NEW YORK—An initiative by the New York Power
Authority (NYPA) for helping to ensure that New York City has
sufficient power supplies during the hottest days of the summer got
going Wednesday with the Authority’s activation of its Peak Load
Management (PLM) program, a highly successful partnership with
customers for reducing electricity demand here.
“This is the ninth summer that we’ve teamed up with
some of our largest government and business customers to cut
electricity use on those days of the summer when the margins between
available power supply and demand narrow the most,” said Frank S.
McCullough, Jr., NYPA chairman. “The reductions that we’ve achieved
in lowering the demand on the power grid have made a real difference
for the reliability of the city’s electricity service during heat
The Power Authority pays participating customers
for each kilowatt they save on PLM days. The program allows for PLM
events for up to 15 weekdays, from June 1 through September 30,
limited to two to six hours, anytime between 11 a.m. and 7 p.m.
Customers include the City of New York, the
Metropolitan Transportation Authority, the Port Authority, the New
York State Office of General Services and larger business customers
throughout the city. Those participating in the program this year
are committed to lowering their grid power usage through various
measures by a total of 55 megawatts (mw), which is about the amount
of power required by 43,000 homes. (One mw equals 1,000 kilowatts.)
The measures, which are being undertaken at some 100 locations,
include shutting off nonessential lighting and discretionary
equipment, limiting the cooling of buildings, and use of small,
properly permitted, on-site generators.
The PLM program helps to meet a reliability
standard requiring that 80 percent of the peak electricity demand in
the city be met by generating facilities within its borders. The
requirement of the New York Independent System Operator (NYISO),
which administers the state’s wholesale energy markets, is intended
to limit the amount of power carried by transmission lines from
outside the city.
Last summer, PLM customers, while committing to
reduce their in-city electric load by 45 mw, significantly surpassed
that level, lowering their demand by 84 mw on Aug. 2, when Con
Edison reached a new record peak of 13,141 mw in its service area.
Various NYPA customers also participate, through
the Authority, in two power curtailment programs administered by the
NYISO for increasing the state’s available generating capacity when
operating reserves are too low. Together with the PLM program, NYPA
customers account for 140 mw of load reduction.
The Power Authority, a statewide public power
utility, meets the electricity needs of the public facilities in New
York City—subways, commuter trains, schools, hospitals, municipal
buildings and various others—under long-term contracts that have
provided hundreds of millions of dollars a year in savings. NYPA
also works in partnership with those customers for year-round
lowering of their utility bills through improved energy efficiency.
To date, the Power Authority has invested more than
$630 million on energy efficiency projects at 1,300 facilities in
the five boroughs, lowering peak electricity use by about 98 mw and
electric bills by over $60 million a year. The energy-saving
measures have included new fluorescent lighting; heating,
ventilating and air-conditioning systems; electric motors; automated
energy management systems; and new-model refrigerators that use
one-half of the electricity of the units they replaced at public
■ NYPA uses no tax money or
state credit. It finances its operations through the sale of
bonds and revenues earned in large part through sales of
electricity. ■ NYPA is a leader in promoting
energy-efficiency, new energy technologies and electric
transportation initiatives. ■ It is the
nation’s largest state-owned electric utility, with 18 generating
facilities in various parts of the state and more than 1,400
circuit-miles of transmission lines.
Return to Press Center