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FREQUENTLY ASKED QUESTIONS |
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- What is a Demand Response Program?
- How much does it cost to enroll in the ECS Demand Response Program?
- Is there any special equipment required to participate?
- What are the penalties for non-performance?
- How much do I get paid?
- When and how do I get paid?
- What makes the ECS Demand Response Program unique?
- How does ECS get paid?
- How do I curtail?
- Who are some of your current participants?
- How do I know if my facility qualifies?
- Is ECS affiliated with my electric utility?
1. What is a Demand Response Program? The New York Independent System
Operator (NYISO) oversees New York State's electricity grid and has the responsibility of maintaining a reliable, safe and efficiently operating grid. The most dangerous thing to an electricity grid is an extremely high
electricity demand, which most typically occurs when the weather is extremely hot for an extended period of time. As demands increase, there is a continuing need for more and more supply. Given the many environmental
and other restrictions, chances are that supply will never catch up pace with the increased demands. Simply put, there are occasional times (usually once or twice a year) when the demands are forecasted to be higher
than the available supply. Because this situation can potentially cause blackouts or brownouts, NYISO had to come up with a plan to reduce electricity demand for these short but tenuous periods of time – this was the
birth of NYISO's Demand Response Programs. Although ECS is administering NYISO's programs, we are going one step further – developing our own straightforward and simpler version of the program to make it
easy to understand. Our program is called "Operation Save New York".
Simple: ECS pays you significant dollars for you to agree in advance to reduce some level of your power usage (up to you how much power you commit to reduce) upon a day ahead notice, usually 2 to 4 times per year. You are not financially penalized if you fail to perform when called upon (other than you wouldn't receive the dollars for the amount you didn't reduce). ECS pays you under 2 separate streams: first, for the commitment to reduce; and secondly, for the energy that you don't use when you reduce.
ECS is the largest demand response provider authorized by NYISO. Notification by ECS takes place 21 hours in advance of an anticipated need for curtailment with participants being contacted via
phone, fax, e-mail, pager etc. that a reduction has been called for. Curtailment may be achieved either through the utilization of on site generation or via a reduction in electricity consumption. The amount of
electricity that one actually curtails is determined by comparing the participant's metered load during the event against their peak demand average from the prior year. A facility may actually have a "head
start" on curtailment based on a variety of factors. For instance, if your overall demand for electricity is less this year than the prior year, a natural curtailment is already in place…Also, typically the grid
is most vulnerable weekdays in the early afternoon so if your facility's peak electricity demands are weekday mornings, late afternoons, evenings or weekends the potential for natural curtailment is substantial. To
see if your facility qualifies and the amount of dollars the program could mean to your facility, CLICK HERE
. In light of the persistent problem in New York with an ever-increasing demand for electricity and a stagnant supply to meet that higher
demand there has never been a better time to participate in a Demand Response Program. Thousands of facilities across the State have enrolled earning millions of dollars for their active participation!
Need suggestions on How to Curtail, CLICK HERE
2. How much does it cost to enroll in the ECS Demand Response Program? Energy Curtailment Specialists can provide you with a new
source of revenue while helping to reduce your energy costs with absolutely no cash outlay for your participation. No catch, you will pay ECS (or anyone else) nothing
to participate! 3. Is there any special equipment required to participate? In order to determine how much energy you curtail, we need to be able to determine the
interval demands at your facility during an event. If you are not already intervally metered (chances are that you are not), ECS installs such a meter at no charge. The meters we utilize are within the strict guidelines
required by the New York State Public Service Commission and are indeed PSC-approved meters. There is no charge for either the meter or the installation. Furthermore there are no monthly service, data
hosting or maintenance charges associated with the meter. This easily installed metering provides data you can utilize to more effectively manage your facility's energy usage.
4. What are the penalties for non-performance? If we call on you to curtail power and you don't, you will never be financially penalized. ECS does not
impose financial penalties for non-performance. You will never be billed or charged back for failing to meet your curtailment objective. Financial penalties and similar non-performance clauses force the client to assume the risk and typically outweigh the potential benefit of participating in such demand response programs. Importantly, if you fail to perform, but do perform to some degree, you are still paid for how much you curtail. In other words, it is not all or nothing. The effect of failing to continually perform is that we may not ask you to remain in the program in later periods and you may be de-rated for the next seasonal periods.
5. How much do I get paid? The dollar amount you are eligible to earn is pre-determined and stated clearly within your agreement. We do not
base our payments for standby capacity on a percentage basis subjecting you to the fluctuations of the market. Our Energy Payments (available during an emergency event) have a minimum earnings floor representing a guarantee of revenue based on the level of your participation during an emergency situation.
In order to find out how much your facility could expect under this program, submit the form by CLICKING HERE
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- A Brooklyn poly bag manufacturer received over $8,000.00 in 2004
- Catholic School in Queens earns in excess of $3,000.00 each year
- Western New York manufacturer is paid over $50,000.00 annually
- Nursing home in Manhattan sees revenue exceeding $15,000.00
- NYC manufacturer increase bottom line by over $500,000 last year
- ECS customers have earned over $7 million dollars in the last 3 years
6. When and how do I get paid? Payment is made twice a year, once after each period of enrollment (summer / winter). You will receive a check directly from ECS and are
not funded via a credit on a bill from your supplier. ECS is entirely independent from your utility. 7. What makes the ECS Demand Response Program unique?
A summary of key differentiators:
- Working with ECS positions you to participate in a unique demand response curriculum referred to as an Installed Capacity-Special Case Resources (ICAP-SCR) program. This distinction is important as it provides
a revenue stream on two fronts, both for your commitment to curtail and your actual curtailment performance
when called upon therefore maximizing your participation. Conversely, should a client be enrolled only in an Emergency Demand Response Program (EDRP) and no emergency be declared by the NYISO, as was the case in 2004, there would be
no earning potential available to those participants.
- ECS does not
impose financial penalties for non-performance. You will never be billed or charged back for failing to meet your curtailment objective. Financial penalties and similar non-performance clauses force the client to assume the risk and typically outweigh the potential benefit. Importantly, if you fail to perform, but do perform to some degree, you are still paid for how much you curtail. In other words, it is not all or nothing.
- The dollar amount you are eligible to earn is pre-determined and stated clearly within your contract. We do not
base our payments for standby capacity on a percentage basis subjecting you to the fluctuations of the market. Our Energy Payments (available during an emergency event) have a minimum earnings floor representing a guarantee of revenue based on the level of your participation during an emergency situation. Consider the alternative; a pay-out structured on a percentage basis unnecessarily exposes the client to a loss in a down market while allowing the provider to maintain a fee at your expense.
- There are no opt-out clauses
within our agreement. If market conditions are not favorable your revenue is sheltered and you will be paid as agreed. How secure would you be in both our knowledge of market conditions and ability to deliver stated revenue forecasts if an opt-out clause existed within our agreement? While exercising an opt-out clause in a down market may avoid a loss for the provider it certainly creates one for the client. With ECS that risk simply does not exist!
- We install, where required, interval metering. There is no charge for either the meter or the installation. Furthermore there are no monthly service, data hosting or maintenance charges
associated with the meter. This easily installed metering provides data you can utilize to more effectively manage your facilities energy usage.
- Payment is made twice a year, once after each period of enrollment (summer / winter). You will receive a check directly from ECS and are not funded via a credit on a bill from your supplier.
8. How does ECS get paid? Your agreement in advance to curtail power or utilize your generator is actually a commodity that is bought and sold through various NYISO
markets. ECS, as the States' largest curtailment provider, is approved and authorized by the NYISO to participate in its markets. Very simply, ECS "buys" your commitment to curtail and in turn
"sells" it via these markets. Each year we analyze the market and project where it will clear. This information is then used to establish a dollar amount per kW (kilowatt) that ECS will pay its participants
for their curtailment and also to project a small percentage profit for itself. If the market clears lower than projected ECS has assumed that risk – you are still paid your contracted amount; no ifs, ands, or opt-out
clauses about it! 9. How do I curtail? When an emergency event or test is called you will be asked to reduce electricity demand or run your on site generator, if
applicable. Although every facility is unique there are some common areas, systems and/or processes that can be manipulated to achieve curtailment. CLICK HERE to review a more detailed explanation.
10. Who are some of your current participants? Our current participants include a diverse range of thousands of facilities including manufacturers, schools, nursing homes, residential and commercial office properties, hospitals, hotels and other commercial energy users across New York State. Refer to some Testimonials volunteered by some of our many satisfied clients. Just a few of our notable participants include The New York Post, Steinway Piano, Marriott Marquis Times Square Hotel, Glenwood Management, Alcoa, General Dynamics, Calspan, Madelaine Chocolate, and 4C Foods.
11. How do I know if my facility qualifies? Whether you qualify for the substantial rewards of ECS'
Program depends on a number of factors that can best be assessed by one of our trained specialists.
CLICK HERE
to determine your eligibility and expected dollar amount. Remember, It Doesn't Hurt to Find Out!
12. Is ECS affiliated with my electric utility? NO. ECS is a private company independent of any and all utilities. We are not a spin-off or splinter company of any electricity supplier nor are
we a state agency. |
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