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REV CONNECT Utility Profile: Consolidated Edison

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REV CONNECT Utility Profile: Consolidated Edison

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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

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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

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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

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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

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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

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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

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• 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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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.