Overview of the NYISO Demand Response Programs Vijaya Ganugula Manager, Demand Response Operations Joint Utilities – Grid Operations Engagement Group July 28, 2016 Rensselaer, NY

Current Wholesale Demand Response Programs Reliability Programs Purpose: Provide load reductions in response to NYISO Operations instructions for a discrete periods of time to maintain system reliability 77 MW enrolled July 2015 Emergency Demand Response Program (EDRP) Energy Payments for Voluntary Load Reduction 1248 MW enrolled Special Case Resources (SCR) Capacity Payments and Energy Payments for Load Reductions Economic Programs Purpose: Load reduction, competing with generation, is scheduled by NYISO based upon economic offers Zero MW enrolled Day-Ahead Demand Response Program (DADRP) Energy Payments for Load Reduction 126 MW enrolled Demand Side Ancillary Services Program (DSASP) Ancillary Services Payments, No Energy Payments for Load Reduction

Two Categories of Demand Response Programs Reliability-Based Programs Purpose: provide load reductions in response to NYISO Operations instructions for a discrete period of time when Operating Reserves are forecast to be short or when there is an actual Operating Reserve Deficiency or other system emergency ICAP-Special Case Resources (SCR) – capacity market program Emergency Demand Response Program (EDRP) – voluntary program Economic-Based Programs Purpose: load reduction, competing with generation, is scheduled by NYISO based upon economic offers Demand-Side Ancillary Service Program (DSASP) – ancillary services only Day-Ahead Demand Response Program (DADRP) – energy only

ICAP-Special Case Resource Program (SCR) – Reliability July 2015 SCR Enrollment: 1248.3 MW Participation Offer capacity into Installed Capacity (ICAP) auctions Load reduction through interruptible loads or loads with qualified behind-the-meter Local Generator Minimum of 100 kW reduction, in aggregate by Load Zone Event notification: 21-hour (24-hours if after 3 pm) day-ahead advisory and 2-hour in-day notice Response mandatory during events for a minimum of four hours Demonstrate maximum capacity obligation (typically through one-hour test) once in each Capability Period

Emergency Demand Response Program (EDRP) – Reliability Summer 2015 EDRP Enrollment: 77 MW Participation Load reduction during a reliability event is voluntary Load reduction through interruptible loads or loads with a qualified behind-the-meter Local Generator Minimum of 100 kW reduction Event notification: 2-hour in-day notice

Demand Side Ancillary Service Program (DSASP) – Economic Summer 2015 DSASP Enrollment: 126.5 MW Participation Participate in Ancillary Service Market to provide Operating Reserves and/or Regulation Service Economic evaluation and price setting capabilities identical to generation Requires 6-second telemetry Minimum Reduction: 1 MW, in aggregate by Load Zone

Day-Ahead Demand Response Program (DADRP) – Economic Summer 2015 DADRP Enrollment: 0 MW (no bidding activity since 2010) Participation Offer to curtail load (energy) in the Day-Ahead Market Economic evaluation and price setting capabilities identical to generation Minimum Reduction: 1 MW, in aggregate by Load Serving Entity and Load Zone

For More Information NYISO Demand Response web page http://www.nyiso.com/public/markets_operations/market_data/demand_response/index.jsp NYISO Demand Response Programs – A list of Frequently Asked Questions (FAQs) for Prospective Resources http://www.nyiso.com/public/webdocs/markets_operations/market_data/demand_response/Demand_Response/General_Information/NYISO%20Demand%20Response%20FAQs%20for%20Prospective%20Resources.pdf New York Market Orientation Course (NYMOC) – Demand Response http://www.nyiso.com/public/webdocs/markets_operations/services/market_training/workshops_courses/Training_Course_Materials/NYMOC_MT_ALL_201/Demand_Response.pdf Installed Capacity (ICAP) Working Group http://www.nyiso.com/public/committees/documents.jsp?com=bic_icapwg NYISO Stakeholder Services 518-356-6060 http://www.nyiso.com/public/markets_operations/services/customer_support/index.jsp

The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefit to consumers by: Maintaining and enhancing regional reliability Operating open, fair and competitive wholesale electricity markets Planning the power system for the future Providing factual information to policy makers, stakeholders and investors in the power system www.nyiso.com