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Reforming the Energy Vision (REV)“Utility of the Future”

Tom MimnaghConsolidated Edison Co of New York

New York Energy WeekApril 23, 2015

Con Edison also includes:

• Orange & Rockland Utilities – Gas and Electric

• Con Edison Solutions – Energy Services in 13 States

• Con Edison Development – 170 MW utility scale solar

Footprint:

• 660 square miles; 133 miles of T&D cable; 6+ mln room A/C units

• In Manhattan, 70,000 customers/sq mile; 2,000 MW/sq mile

About Con Edison

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Customers Infrastructure Service Territory

Electric 3.3 million One of the largest underground systems in the world

All 5 boroughs and Westchester County

Gas 1.1 million 4,333 miles of gas mains and services

3 out of the 5 boroughs and Westchester County

Steam 1,760 Largest district steam system in the world

Manhattan below 96th Street

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Reforming the Energy Vision (REV)A New York State initiative

• Empower customers to manage energy use and electricity bill

• Encourage innovation by third parties to create new market-based products and services

• Enable distributed energy resources (DERs) to manage load and optimize the system, and to improve system efficiency

• Reduce carbon emissions and increase resource diversity

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Distributed generation trends

The number of solar PV projects more than doubled in 2014

Customers are actively pursuing Combined Heat and Power systems

Existing CHP

CHP Pipeline Projects (2013 – 2018)

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• $189 million in EE incentives in five years; 222,000 customers

• Emphasis on shaping load curves

• 34,000 customers participate in distribution DR programs – 397 MW

• 6 million window air conditioning units in NYC

• Piloted “modlet” technology that allows customers to remotely control window A/C units – and unlocks demand response resource

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Con Edison’s EE and DSM programs

Targeted programs have deferred more than $200 million of infrastructure in 10 years

Animated illustration of network load changes over 24 hours of a peak day

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Animated illustration of network load changes over 24 hours of a peak day

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• Meets capacity shortfall through a $200 million program– Non-traditional customer-sided 41 MW

($150 m)

– Utility-sided solutions 11 MW ($50 m)

• 78 responses to RFI

• Expenditures treated as 10 year capital assets with regulated return

• Includes incentive for new performance metrics

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Brooklyn-Queens Demand Management Program (BQDM)

Deferral of $1.2 billion in traditional network upgrades with distributed solutions

Targeted area (4 networks)

11 12 13 14 15 16 17 18 19 20 21 22 23 24750

760

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790

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Sample network 2016 peak day load curve

Hour

MW

1 Hour

12 Hour

8 Hour

1 Hour

6 Hour4 Hour

2 Hour

2 Hour4 Hour

1 Hour

1 Hour

1 Hour

Building a DER Resource Portfolio

DER solutions must address at least 12 hours for the forecasted summer overload period*

MW Sample Network Peak Day Load Curve

*Diagram is illustrative only

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What is the proper role for distribution utilities?

Are markets the most effective way to encourage DER expansion and to capture the full benefits of DER or non-market mechanisms work as well or perhaps better?

How do we connect the wholesale and retail markets and coordinate information flows?

Does a transactive energy market framework empower consumers or complicate their lives? How long will it take and how much will it cost to create a fully functioning DSP?

Who will pay for the new investments required to create new markets (or even to encourage DER through non-market mechanisms) and who will benefit from them?

Will a decentralized electric grid with large volumes of distributed energy resources be

able to ensure grid reliability and increase resiliency?

What is the role of the Distributed System Platform (DSP)?

Customers should get more flexibility to control their bill. Safety, reliability and resiliency must be maintained or increased as the grid becomes more complex.

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