1. 1 Case Study of Demand Response: Con Edison Business Program by Eileen Egan-Annechino Consolidated Edison Company of New York, Inc.

2. 2 Background Residential PilotSummer 2001 PSC ApprovalApril 2002 Installations BeginJune 2002 Business PilotSummer 2004 PSC ApprovalSeptember 2005 Installations BeginNovember 2005

3. 3 Program Design Design Objective Cost-effective load reduction Adequately verifiable Acceptable to customers Quantitative Objective Summer peak kW load reduction Level of overrides Qualitative Objectives Marketing strategy Customer understanding, satisfaction & reaction Barriers to participation Type of business most suitable for participation

4. 4 Program Technology Programmable Thermostat Two-way pager communications, which ensures verification, remote access via Internet (customer and utility) Runtime & temperature data available (7 days) Capable of duty cycle control or temperature control Overrides can be tracked

5. 5 Thermostat Built into unit

6. 6 Program Features The Offer Programmable Thermostat Control central air-conditioning system manually or remotely using the Internet Free Installation Bonus gift of $50 Override without penalty The Benefits Manage Energy Costs Customized temperature settings Cool space only when occupied Internet access Monitor room temperature Adjust remotely Energy Savings Business controls energy consumption

7. 7 Recruitment and Participation Recruitment Door-to-door marketing is the primary marketing strategy for the business customer Program specific web site which allows on-line applications Participation 5,100 thermostats in 3,800 facilities (8MW) Some technical turn-downs Lack of access, existing equipment not working properly or in poor condition

8. 8 Program Evaluation Run Time Data Collection/Analysis Recovery of site data Run time duty cycle combined w/maximum load draw Comparison analysis of control day and baseline day Customer Surveys Post Installation Technical turndown Annual Post-Season (2006 in progress)

9. 9 Summer 2006

10. 10 Load Impact August 1 st - August 3 rd Major heat wave - +100 deg. Temperatures Average peak impact 1.7kW – 2.0kW per cac Overrides average 19% to 25% (day 3) 65% of cac units running flat out on baseline day (8/1) Average temperature increase less than 3 degrees

11. 11 Customer Impacts First curtailment experience for majority of customers Typical curtailments are 2-6 hours August 2006 – 10-14 hour duration Extraordinary heat wave exceeded design temperature of many cac units Most customers did not remember how to override Less than 2% of participants withdrew from program 2006 Annual survey in progress

12. 12 Program Design Considerations Vary control based on weather conditions and length of curtailment Duty Cycle more effective for short-term curtailments (typical 1- 6pm) Temperature control may more effective for long-term curtailments

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