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nyrevconnect.com
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REV CONNECT Utility Profile: Consolidated Edison
Prepared by: Navigant Consulting, Inc.
77 South Bedford Street
Suite 400
Burlington, MA 01803
781.270.8300
navigant.com
REV CONNECT Utility Profile: Consolidated Edison
Page i
DISCLAIMER
This report was prepared by Navigant Consulting, Inc. (Navigant) for the New York State Energy
Research and Development Authority. The work presented in this report represents Navigant’s
professional judgment based on the information available at the time this report was prepared. Navigant
is not responsible for the reader’s use of, or reliance upon, the report, nor any decisions based on the
report. NAVIGANT MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED.
Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a
result of their reliance on the report, or the data, information, findings and opinions contained in the
report.
REV CONNECT Utility Profile: Consolidated Edison
. Page ii
TABLE OF CONTENTS
1. Introduction to Con Edison ...................................................................................... 1
1.1 Approach to Reforming the Energy Vision (REV) ......................................................................... 1 1.1.1 REV Strategy .................................................................................................................... 1 1.1.2 REV Organization ............................................................................................................. 2
1.2 System and Territory ..................................................................................................................... 3 1.3 Resources ..................................................................................................................................... 5
1.3.1 Relevant Filings ................................................................................................................ 5 1.3.2 Available Data .................................................................................................................. 5
2. Plans and Programs .................................................................................................. 8
2.1 Distribution System Implementation Plan (DSIP) ......................................................................... 8 2.1.1 Capabilities ....................................................................................................................... 8 2.1.2 Technology Roadmap ...................................................................................................... 9
2.2 Efficiency Transition Implementation Plan (ETIP) ....................................................................... 11
3. Projects .................................................................................................................... 13
3.1 REV Demonstration Projects ...................................................................................................... 13 3.1.1 Building Efficiency Marketplace ...................................................................................... 13 3.1.2 Connected Homes .......................................................................................................... 14 3.1.3 Clean Virtual Power Plant............................................................................................... 14 3.1.4 Commercial Battery Storage .......................................................................................... 15 3.1.5 Storage On Demand ....................................................................................................... 16
3.2 Non-Wires Alternative (NWA) Projects ....................................................................................... 17
REV CONNECT Utility Profile: Consolidated Edison
. Page 1
1. INTRODUCTION TO CON EDISON
1.1 Approach to Reforming the Energy Vision (REV)
Consolidated Edison (Con Edison) is an investor-owned energy company with approximately $12 billion
in annual revenue and $22 billion in assets. The company provides electric and gas service to the
residents and businesses of New York City and Westchester County, and steam service to businesses in
Manhattan.
1.1.1 REV Strategy
Con Edison is focused on four key objectives: customer empowerment, reliability, operational excellence,
and safety. These objectives were developed before REV and then adapted to better align with REV.
Table 1 compares Con Edison’s key strategy pillars to its REV objectives as a distributed system platform
(DSP) provider.
Table 1. Alignment of REV Goals with Con Edison’s Strategic Objectives
REV Goals Utility Strategy
Engage customers and provide them
with more information and
opportunities to control their energy
usage
Increase customer empowerment by providing control of
energy bills and tracking energy usage
Deliver safe and reliable service to
all customers
Increase reliability by integrating advanced technologies
and testing new concepts in a way that maintains the
high standards of delivery for customers
Accelerate the company’s learning to
maximize the value of the DSP
Pursue operational excellence by outlining near-term
capability enhancements and discuss potential future
needs as distributed energy resource (DER) penetration
increases
Protect customers from
cybersecurity threats, which are
prevalent with greater amounts of
data and an increase in the number
of devices connected to the system
Improve safety by applying the latest tools and
techniques to counter any emerging cybersecurity threats
for both the safe and reliable operation of the distribution
system and the protection of all customer personally
identifiable information
Con Edison’s approach to REV places emphasis on customer engagement and keeping costs reasonable
for customers. The company is developing new customer engagement tools such as the Digital Customer
Experience (DCX), which has been launched to more than 275,000 customers in the Brooklyn and
Westchester territories.
Con Edison’s approach to developing demonstration ideas uses a request for information (RFI) process
rather than prescriptive requests for proposals. Through RFIs, Con Edison articulates specific interests or
needs and invites market partners to help develop the solutions.
REV CONNECT Utility Profile: Consolidated Edison
. Page 2
Con Edison recognizes the value of DER, including to meet the need for system expansion through
investments in energy efficiency (EE), demand response (DR), distributed generation (DG), and storage
solutions instead of through traditional infrastructure builds. The Brooklyn Queens Demand Management
(BQDM) Program is Con Edison’s largest non-wires alternative (NWA) effort to date; it will continue
soliciting DER solutions through 2018.
1.1.2 REV Organization
Con Edison’s Distributed Resource Integration (DRI) organization, formed in May 2015, is a proactive
response to the evolving energy distribution markets in New York. Con Edison deems this new
department critical to address customer needs, move forward on REV, and adapt to the changing energy
environment. DRI integrates infrastructure planning, innovative technical options, EE, and creative
solutions to ensure continued reliability while serving customers in the future. The Utility of the Future and
EE/DR, Distributed Resource Planning, and Demonstration Project teams all report to the VP of DRI.
Figure 1. Con Edison’s DRI Organization
Two committees provide direction and oversight to the DRI organization: the REV Advisory Committee
and the REV Steering Committee.
1. The REV Advisory Committee is made up of leaders from Con Edison’s functional areas—
Information Resources, Corporate Accounting, Corporate Strategy, Corporate Communications,
Engineering and Planning, Energy Policy and Regulatory Affairs, Government Relations, and
Customer Operations. These areas will be impacted by or will need to provide resources to
support REV initiatives. This committee provides guidance and input on strategic priorities, policy,
and decisions; reviews REV project schedules and deliverables to ensure alignment of business
unit priorities; secures resources to support REV work streams; resolves cross-functional issues
with peers; serves as a champion for REV priorities within respective business units; and makes
decisions as delegated by the REV Steering Committee.
2. The REV Steering Committee consists of key members from Con Edison’s senior executive
leadership team. The role of the Steering Committee is to set strategic priorities for Con Edison
with respect to REV, make critical policy and strategy decisions, set the standard for REV-related
deliverables, and approve overall resourcing for the effort. Con Edison’s senior leaders will have
full visibility on REV demonstrations.
VP, DRI
Manager, Project
Management
Office (PMO)
Director, Demonstration
Projects
Director,
EE and DR
Director, Utility of the
Future
Director, DRI Distribution
Planning
REV CONNECT Utility Profile: Consolidated Edison
. Page 3
1.2 System and Territory
Con Edison’s distribution system serves almost 40% of New York State’s electric demand, while only
covering about 1% of the state’s geographic footprint. Its system serves customers in five boroughs of
New York City and Westchester County located directly north of New York City. Its customer base is
mostly residential and commercial customers, with less than 1,000 industrial customers.
Figure 2. Con Edison’s Service Territory
Source: New York State Energy Research and Development Authority
Table 2. Con Edison Customer Base: 2015
Customer Type Customers Energy (MWh)
Residential 2,918,595 14,377,614
Commercial 525,929 43,458,221
Industrial 760 662,526
Total 3,445,284 58,498,361
Source: US Energy Information Administration (EIA)-861
Energy use is forecasted to stay constant in Con Edison’s service territory, with 2020 value within 1% of
the 2015 value, while peak demand is expected to continue increasing. However, peak demand inclusive
of DER will remain relatively flat with only minor increases from 2015 to 2020.
REV CONNECT Utility Profile: Consolidated Edison
. Page 4
Figure 3. Con Edison Energy and Peak Demand Forecast: 2015-2020
Source: Con Edison
Con Edison’s system is different than other utilities in New York State because it has an extensive
underground distribution system. Characteristics of the underground network and overhead system are
summarized in Table 3.
Table 3. Underground Network vs. Overhead System
Underground Network Non-Network Overhead System
Serves 86% of Con Edison’s customers Serves 14% of Con Edison’s customers
62 area substations 219 unit substations
64 networks and 19 non-network load areas 168 auto loops
2,300 primary voltage distribution feeders 13 multibank substations
251,500 manholes and service boxes Approximately 198,400 poles
95,800 miles of underground cable 34,200 miles of overhead wire
41,200 underground transformers 50,800 overhead transformers
Second contingency design
(Designed to sustain the loss of any two feeders
in a network under peak load conditions without
any feeder or transformer overloads or an adverse
effect on service to customers)
First contingency design
(Designed to sustain the loss of one feeder under
peak load conditions without any feeder or
transformer overloads or an adverse effect on
service to customers)
This networked underground system poses unique challenges to DER implementation, as listed below
and described in greater detail in Con Edison’s Distribution System Implementation Plan (DSIP).
• The network system requires special consideration when integrating DER to provide load relief at
the distribution level as compared to non-network systems.
13,300
13,400
13,500
13,600
13,700
13,800
13,900
14,000
14,100
14,200
14,300
-
10,000
20,000
30,000
40,000
50,000
60,000
2015 2016 2017 2018 2019 2020
Peak D
em
an
d (
MW
)
En
erg
y (
GW
h)
Year
Energy (GWh) Peak Demand (MW) Peak Demand With DER (MW)
REV CONNECT Utility Profile: Consolidated Edison
. Page 5
• High load density and network design can absorb DG interconnection more readily than non-
network systems by spreading the power in multiple directions, but the efficacy of the relief
provided by such DER is lessened for these same reasons.
• The cost of the portfolio of DER solutions for networked systems is higher to meet load relief
needs.
The extremely dense nature of the Con Edison service territory makes it difficult to build new generation
or transmission facilities close to the demand areas, making DER and EE extremely important to meet the
growing demand. The high load density places a greater emphasis on assessing the efficiency and
reliability of the DER providing load relief to prevent overloading system assets.
1.3 Resources
1.3.1 Relevant Filings
Table 4 includes an abbreviated list of the relevant filings from Con Edison.
Table 4. Con Edison’s Relevant Filings
Document Name Date of Filing Link
DSIP 06/30/2016 CECONY Initial DSIP
Efficiency Transition
Implementation Plan (ETIP) 07/15/2015 Con Edison ETIP
Electric Rate Case Filing 2016 Con Edison Rate Filing 2016
Connected Homes Demo
Implementation Plan 02/01/2016 Demo_CONectED_Homes
Building Efficiency Marketplace
Demo Implementation Plan 11/20/2015 Demo Building Efficiency Marketplace
Virtual Power Plant (VPP)
Implementation Plan 12/11/2015 Demo_VPP
Commercial Battery Storage
Demo Project Outline 01/20/2017 Con Edison Commercial Storage Final
Storage On Demand Demo
Project Outline 02/27/2017 Storage On Demand
Smart Home Rate Demo Project
Concept 02/01/2017 Smart Home Rate
Supplemental DSIP 11/01/2016 Joint Utilities Supplemental DSIP
1.3.2 Available Data
Table 5 presents the system data available to stakeholders and authorized third parties as presented in
Con Edison’s DSIP. See Con Edison’s DSIP for further details on available data.
REV CONNECT Utility Profile: Consolidated Edison
. Page 6
Table 5. System Data Available to Stakeholders
Data Availability Link
Customers
Load Forecast DSIP: Forecast of Demand and
Energy Growth
New York State Department
of Public Service Filing
Load Data Utility Website: System Data Con Edison Distribution
System Platform
Total Sales EIA-861
US EIA – Power Sales,
Revenue and Energy
Efficiency
Demographics EIA-861
US EIA – Power Sales,
Revenue and Energy
Efficiency
Customer Data Retail Access Information System
(RAIS)
Con Edison Retail Access
System
Infrastructure
Capital Investment Plan
Report on 2016 Capital Expenditures
and 2017-2021 Electric Capital
Forecast
New York State Department
of Public Service Filing
Reliability Statistics 2015 Annual Report on Electric
Service and Power Quality
New York State Department
of Public Service Filing
Substations DSIP: Reliability Planning Criteria New York State Department
of Public Service Filing
Voltage DSIP: Reliability Planning Criteria New York State Department
of Public Service Filing
Poles and Manholes DSIP: Overview of Con Edison's
Service Territory
New York State Department
of Public Service Filing
Circuit Capacity DSIP: Reliability Planning Criteria New York State Department
of Public Service Filing
Circuit Design Criteria DSIP: Reliability Planning Criteria New York State Department
of Public Service Filing
DER
Penetration Rates DSIP: Forecast of Demand and
Energy Growth
New York State Department
of Public Service Filing
Distribution Indicator Maps for
Hosting Capacity (Stage 1
Indicators)
Utility Website: Using Private
Generation Energy Sources
Con Edison Private
Generation Information
REV CONNECT Utility Profile: Consolidated Edison
. Page 7
Data Availability Link
Beneficial Locations
System data portal under
development; or DSIP: Beneficial
Locations for DER Deployment
New York State Department
of Public Service Filing
NWA Opportunities Utility Website: Non-Wires
Alternatives
Con Edison Non-Wires
Alternatives
Standardized Interconnection
Requirements (SIR) Pre-
Application
Utility Website: Applying for Private
Generation Interconnection
Con Edison Private
Generation Application
SIR Interconnection Queue
and DERs Already
Connected
SIR Pre-Application Report provided
to New York Public Service
Commission
New York State Department
of Public Service – SIR
Inventory Information
REV CONNECT Utility Profile: Consolidated Edison
. Page 8
2. PLANS AND PROGRAMS
2.1 Distribution System Implementation Plan (DSIP)
Con Edison’s DSIP:
• Describes its plans to continuously improve its capabilities in distribution system planning,
distribution grid operations, and customer data and engagement, as well as the IT systems that
will enable such improvements
• Outlines its plan to efficiently integrate DER and promote the company’s goals of customer
engagement, reliability, and operational excellence
• Includes a plan for encouraging technological innovation and stakeholder engagement
• Emphasizes that key planning information included in the DSIP, such as the electric demand and
energy forecast and the capital budget, will be updated and shared with stakeholders to provide
timely and actionable information about potential market opportunities
2.1.1 Capabilities
To achieve the company’s corporate strategies of customer engagement, reliability, and operational
excellence under REV, Con Edison has developed three key plans to support the transition to its role as a
DSP provider.
Table 6. Focus Areas for DSP Development
Focus Area Outline Key Points
5-Year Roadmap
• Integrate approximately 800 MW of DER by 2020
• Build on the growth of solar energy
• Enable the steady growth of combined heat and power to enhance resiliency
• Provide greater opportunity to benefit from Con Edison’s EE and DR programs
• As peak electric demand has increased, the importance of EE and DER in the service territory has become vital
• The BQDM Program is Con Edison’s first experience using EE, DG, and DR to meet increasing demand rather than traditional infrastructure upgrades
REV CONNECT Utility Profile: Consolidated Edison
. Page 9
Focus Area Outline Key Points
Grid
Modernization
Investment Plans
in Support of
DER
• Build adaptability and increase grid-edge monitoring so the grid benefits from increasing amounts of DER
• Implement advanced metering infrastructure (AMI) to provide the cybersecure backbone and metering information needed for the new marketplace
• Seek strategic transmission investments to enable large-scale renewables
• The system would be unable to support high levels of DER and DR implementation without grid modernization
• Con Edison is examining the current system for potentially impactful locations based on peak load relief or to avoid infrastructure investments
Multi-Pronged
Plan to Stimulate
DER Growth
• Outline opportunities in the capital investment plan for NWAs including the ongoing BQDM Program
• Present new candidates for NWAs at the distribution level
• Promote innovation and inform future DSP investments
• Monitoring peak loads and hosting capacity of circuits will become more important as the amount of DER in the system increases
• This monitoring will be heavily reliant on AMI to monitor the electric system in real time
• The data will be used to perform load flow analyses and create a map that indicates to consumers whether or not they are located on a circuit where DER would be beneficial
2.1.2 Technology Roadmap
The initial technology roadmap relies heavily on IT investments to complement existing planning and
operations needs by providing more information to system planners. Con Edison's transmission and
distribution (T&D) service provider technology roadmap examines the following:
• Current IT and communications capabilities
• AMI and DCX initiatives
• Required near-term DSP functionalities
• Gaps in meeting near-term DSP functionality requirements
• How to close those gaps to achieve the DSP functionalities over the next 5 years
Table 7 lists some of the near- and long-term initiatives of the DSIP and highlights opportunities for
market partner involvement.
REV CONNECT Utility Profile: Consolidated Edison
. Page 10
Table 7. Near- and Long-Term DSIP Initiatives
Functional
Category
Near-Term Focus
(2017-2018)
Long-Term Focus
(2019+)
Forecasting
• Upgrade Metrix IDR
• Utilize additional analytical tools such as advanced forecasting models
• Interface AMI and DER management system (DERMS) with additional analytical tools
• Accommodate increased data volume
• Utilize analytical tools like advanced/customized SAS forecasting
Planning
• DERMS
• Expansion of, or similar program to, integrated demand-side management (IDSM) with a more granular view
• DER metering infrastructure
• Inclusion of DER performance data into the DER database
• Visualization and transient analysis enhancements to the Load Flow model
• IDSM enhancements
• Incorporate probability calculations into the DER database
Hosting
Capacity (HC)
• Presentation of HC for non-network systems, as well as enhancement in HC for network systems
• Standardization and consistency of HC maps in alignment with the Joint Utilities
• Mapping solutions
• GIS to replace discrete mapping tools
• Real-time tracking of DER
• Integration with modeling software, DERMS, and the interconnection portal
• Dynamic system tool that is integrated with the DERMS, interconnection queue, and mapping system
Monitoring and
Control
• DERMS
• Outage notifications
• GIS
• Additional meters at the source
• Dashboard for actual DR use
• Expanded metering infrastructure
• DERMS integrated with operating tools
• Automated connection (or a process change) to integrate with the control room
Interconnection
• Interconnection portal
• Project center replacement (may be subsumed by DCX)
• Manual screens
• Expected changes to SIR
• Link to DCX to display the queue
• SQL servers
• Continued interconnection process and technology enhancements
• GIS
• Link between the project center (or replacement)/CPMS and the operating and planning tools (PVL)
• Add-on reporting solutions
Volt/Volt-
Ampere
Reactive
Optimization
(VVO)
• New tap changing transformers, local capacitors, and SCADA controls to remotely manage conservation voltage optimization (CVO) functions
• Data analytics/programming tools
• Dynamic implementation of VVO
• Management software platform to integrate granular AMI data
• Management system for distributed reactive power using smart inverter technology
REV CONNECT Utility Profile: Consolidated Edison
. Page 11
Functional
Category
Near-Term Focus
(2017-2018)
Long-Term Focus
(2019+)
Customer Data
Sharing
• Green Button Connect (GBC)
• DCX
• Revised electronic data interchange (EDI) protocols for data transfer or new RESTful application program interfaces (APIs)
• Registration portal for interactive maps
• Access and subscription management solution
• Enhanced solutions as data exchange needs are further defined
• Encryption, secure storage, and other privacy and cybersecurity solutions
• GIS to replace many discrete mapping tools
• Real-time tracking of DER
• Integration with PVL modeling software, CPMS, DERMS, and the interconnection portal
Con Edison is working to determine the best process for identifying beneficial locations for DER
deployment. The company has identified a list of possible locations where NWAs could be used to offset
infrastructure upgrades, including identifying the need for load relief at 10 of its 62 substations.
Microgrids have the potential to be highly valuable in the Con Edison service territory, as they could
replace traditional storm-hardening measures. The next round of storm-hardening/resiliency programs will
be implemented after the completion of the post-Hurricane Sandy projects.
In the near term, implementing AMI is the main distribution system change envisioned by the DSIP. From
2017 to 2022, Con Edison expects to provide smart meters and a communications network to all of its
customers. The company states this will allow the system to successfully integrate high levels of DER and
large, intermittent sources of power without negatively affecting the grid.
2.2 Efficiency Transition Implementation Plan (ETIP)
Con Edison’s ETIP highlights the importance of continuing and enhancing EE programs, integrating a
test-and-learn (T&L) process, and assessing opportunities to coordinate and integrate EE with demand
management and DR. Table 8 summarizes the changes to EE programs under REV.
REV CONNECT Utility Profile: Consolidated Edison
. Page 12
Table 8. REV Enhancements
2016 ETIP Program Goals Proposed Program Enhancements from ETIP
Provide greater access for low-income
customers to participate in the
multifamily program
The low-income natural gas program, previously
addressed as a separate customer sector, will be
incorporated into the multifamily customer sector
offering so Con Edison can deliver a more cost-
effective solution to increase overall low-income
customer participation.
Launch a self-direct program for large
commercial and industrial customers
Large commercial customers will be able to apply to
participate in the initial offering of the self-direct
program. This will give these customers an additional
choice in how they interact with Con Edison’s EE
programs.
Establish a customer-driven T&L
process for new programs and delivery
mechanisms
Beginning in 2016, Con Edison implemented an
ongoing T&L strategy and implementation process to
be used to identify new measures, uses, and delivery
mechanisms for existing offerings and to identify and
test new programs and initiatives before full-scale
implementation.
REV CONNECT Utility Profile: Consolidated Edison
. Page 13
3. PROJECTS
3.1 REV Demonstration Projects
Con Edison’s demonstration projects include the following:
• Building Efficiency Marketplace: An energy insights platform to increase commercial customer
awareness and participation in energy savings programs
• Connected Homes: Targeted, multichannel customer engagement that combines home energy
reports with advertising of DER products and services
• Clean Virtual Power Plant: 1.8 MW/4 MWh of aggregated solar plus storage capacity, combined
to form a virtual power plant (VPP) that Con Edison can control
• Commercial Battery Storage: Four energy storage systems installed in front of the meter at
customers’ facilities for a combined 4.2 MW/4.4 MWh of battery storage
• Storage On Demand: A 1 MW/4 MWh portable energy storage system that can be easily moved
to address issues throughout Con Edison’s service territory
3.1.1 Building Efficiency Marketplace
Con Edison has previously offered commercial EE programs and is using this demo to improve their
offering by:
• Offering a web-based portal to engage customers with details on how their building consumes
energy today, as well as their potential energy savings and demand reduction opportunities
• Connecting customers with market partners using a standard bid process including workflows,
terms and conditions, documentation, templates, forms, and timelines
• Virtual, automated savings measurement and verification (M&V) to provide customers with
visibility into savings and to ensure that implemented projects continue to perform over time
Con Edison is partnering with Retroficiency (now Ecova), which is sharing in the project development
costs. Con Edison will also be partnering with several EE providers that will then bid on projects through
the web-based portal. The program is being targeted at approximately 2,100 medium to large commercial
buildings that currently have interval metering.
Table 9. Building Efficiency Marketplace Specifics
Utility Market Partner Customer
Provides
• Virtual energy audits and targeted inspections
• M&V services
• Fees to Con Edison for ads and leads
• Efficiency services to customers
• Data and participation in online audits
• Pays (or finances) for EE projects
REV CONNECT Utility Profile: Consolidated Edison
. Page 14
Utility Market Partner Customer
Receives
• Advertising revenue from partners
• Revenue from leads generated
• Easier access to project leads and customers
• Access to building energy data analytics platform
Unique
Value
Proposition
• More easily reach EE
and demand
management
objectives
• Reduced customer acquisition costs relative to traditional outreach methods
• A new method to identify, evaluate, procure, and track EE projects
• Improvement from the current, slow, manual, and fragmented market
3.1.2 Connected Homes
Through the Connected Homes platform, Con Edison will reach out to customers with personalized offers
for DER and energy products/services. The offers will be tailored to customer segments based on energy
use profiles and demographic, psychographic, and behavioral data. The goal is to increase DER adoption
by avoiding mismatched solicitations such as apartment dwellers receiving advertisements for rooftop
solar, or renters receiving mailed promotions for home retrofits.
The reports will be delivered to customers both by mail and electronically. The reports will be
complemented with a web portal for a more detailed analysis of customers’ energy use. Con Edison is
partnering with Opower to develop the data analysis and customer communications platform. The initial
energy service providers that advertise through this program include SunPower, Nest, ecobee, and
HomeServe. The project will initially target customers in the Brooklyn and Westchester neighborhoods.
Table 10. Connected Homes Specifics
Utility Market Partner Customer
Provides
• Raw data on customer energy usage
• Funding for the platform and data analysis
• Energy services for end-use customers
• Portal and market segment analysis for Con Edison
• Access to their
energy usage
information
• Payments for services acquired
Receives • Advertising revenue
from energy service providers
• Fees for services provided to the customer and Con Edison
• Customized DER recommendations
Unique
Value
Proposition
• Receive fees for product advertising
• Reduced customer acquisition costs through targeted marketing
• Utility-endorsed platform for advertising
• Reduce non-relevant advertising
• Improved information
and products to help
manage energy costs
3.1.3 Clean Virtual Power Plant
This project will aggregate residential solar plus energy storage systems to create a VPP. The systems
will individually provide resiliency services to customers, while collectively providing network benefits to
REV CONNECT Utility Profile: Consolidated Edison
. Page 15
the grid. The combined VPP will have a total capacity of 1.8 MW and an aggregated energy output of 4
MWh.
Con Edison has partnered with SunPower and Sunverge to deliver this offering. Customers will either
purchase or finance the solar system and receive a Con Edison-owned storage system. The project is
broken into three phases:
• Phase 1 – Customer Adoption: Customers are found and presented with customized system
options. Systems are installed.
• Phase 2 – VPP Integration: SunPower/Sunverge network operations center (NOC) is tied to Con
Edison’s SCADA system. Con Edison begins controlling the VPP.
• Phase 3 – Market Penetration: Con Edison tests the ability of the VPP to participate in the
wholesale and/or distribution markets.
Table 11. Clean VPP Specifics
Utility Market Partner Customer
Provides
• Financing for the storage systems
• Tie to SCADA system for VPP control
• Customer acquisition, site inspection, design, installation, and commissioning services
• Solar financing options
• Space for solar panels and energy storage installations
• Additional payments for resiliency services
Receives • Revenue for resiliency
services
• Control of the VPP
• Receives payments for its services
• PV generation and backup power
Unique
Value
Proposition
• Avoided T&D upgrades using a VPP
• Smoothed or shifted PV output
• Utility payments for customer-sited storage
• Utility partnership for customer acquisition
• No upfront costs for integrated solar plus storage systems
3.1.4 Commercial Battery Storage
This REV demonstration project is designed to demonstrate how aggregated front-of-the-meter (FTM)
energy storage can provide network benefits to the grid. This is in contrast to the behind-the-meter (BTM)
installations in the Clean VPP demonstration project noted in Section 3.1.3. This demonstration program
will validate the ability for FTM storage to address grid-level issues and bid into the wholesale energy
market. It will also be used to evaluate the potential revenue that could have been earned if the systems
were located BTM or if it was allowed to bid into either the frequency regulation or capacity markets.
Con Edison is partnering with GI Energy to develop the project and with Smarter Grid Solutions for the
communications integration. GI Energy will obtain third-party financing for the systems and procure the
battery units from NEC Energy Solutions and Urban Electric Power (UEP). The project will include four
project sites, each containing a 1 MW/1 MWh NEC lithium ion battery system. One site will also include a
UEP 200 kW/400 kWh zinc manganese dioxide battery system.
REV CONNECT Utility Profile: Consolidated Edison
. Page 16
Table 12. Commercial Battery Storage Specifics
Utility Market Partner Customer
Provides
• Payments for control of the systems
• Payments for customer siting
• Owns, installs, and operates the systems
• Provides space for the systems
Receives • Control of the systems
• Financial benefits from market transactions
• Receives payments from the utility for providing the service
• Receives a fixed monthly fee for providing space for the storage system
Unique
Value
Proposition
• Captures value from grid-related services in congested areas
• Demonstrates the potential of FTM energy storage systems
• Ability to own and finance customer-sited storage with a guaranteed revenue stream from the utility
• Receives payments for hosting storage without having to modify their BTM operations
3.1.5 Storage On Demand
This demonstration project centers on a 1 MW/4 MWh energy storage system that is mounted on
transport trucks so it can be easily relocated. The system will be deployed as needed for transmission
deferral, distribution deferral, and system emergencies. When not deployed, it will participate in the
wholesale electricity, frequency regulation, and operating reserves markets depending on its location and
the applicable New York Independent System Operator (NYISO) rules.
The 1 MW/4 MWh system will consist of two mobile battery trailers and one mobile electrical switchgear
trailer. It will be provided by NRG Energy and connected to the grid at NRG’s existing Astoria Generating
Station when not deployed remotely. NRG will partner with LG Chem and Greensmith to design, build,
and deliver the mobile storage solution. Con Edison anticipates engaging Power Edison to assist with the
transportation and deployment logistics.
Table 13. Storage on Demand Specifics
Utility Market Partner Customer
Provides
• Capital costs
• Operations and maintenance payments to NRG for system operation
• Mobile energy storage system
• Storage space and electrical interconnection
• N/A*
Receives • Share of market revenues
• Control over storage system
• Payments from Con Edison
• Share of market revenues
• N/A*
Unique Value
Proposition
• Ability to quickly deploy and re-deploy storage as needed
• Ability to test technology as a mobile solutions platform
• N/A*
*Customers are involved indirectly through Con Edison but do not participate directly in this demonstration project.
REV CONNECT Utility Profile: Consolidated Edison
. Page 17
3.2 Non-Wires Alternative (NWA) Projects
Con Edison’s BQDM Program was designed to reduce peak load by 52 MW in the BQDM area through a
combination of customer-sited solutions (41 MW) and non-traditional utility-sited solutions (11 MW).
Auctions were held in July 2016 to procure demand management resources for 2017 and 2018.
Con Edison is likely to use a similar procurement framework for future NWAs and is considering all future
infrastructure upgrades as potential NWA opportunities. The company has also determined that, in
general for its service territory, NWA opportunities are most impactful at the area substation level. Con
Edison has identified several additional capital investment opportunities to review for NWA suitability and
cost-effectiveness. Its candidates are:
• Area station-level projects:
o The Glendale Area Station project (Glendale): The traditional project installs a new
transformer at the Glendale substation to facilitate a 60 MW load transfer and supports
the BQDM NWA.
o West 65th St. No. 1: This traditional area substation project involves either upgrading
synchronous bus sections or installing cooling for both synchronous buses to provide
greater capacity.
• Distribution-level projects:
o Glendale Load Transfer Project (Glendale)
o Flushing Crossing Project: The traditional project addresses capacity constraints at six
feeder crossings in the Flushing load pocket.
o Yorkville Crossing Project: The traditional solution utilizes the full breaker capability of
the station by bifurcating the feeder from the station to the load via a new duct system to
decrease duct occupancy and increase the feeder ratings.
o Penn Network Feeder Relief: The traditional solution would be additional reinforcement
to maintain reliability for customers on distribution feeders in the Penn Network which are
forecasted to have high load growth due to the Hudson Yards Project.