New York Commission Approves National Grid’s Programs to Cut Peak Gas Demand, Encourage Smart Technology Systems

The New York Public Service Commission on Oct. 12 approved revisions to National Grid’s gas demand response programs to lower consumption during cold weather and peak usage periods during the impending winter heating season. The commission finalized plans for the utility’s downstate service territories for residential and business users, and to execute the same programs in National Grid’s upstate service territory.

As a result of these changes, around 1.7 million residential and business consumers in National Grid’s natural gas service territory would be entitled to take part in the “bring your own thermostat,” or BYOT, program. The initiative is designed to reward customers for using less electricity during hours of high demand. In essence, the program is a load-shifting system, which uses Wi-Fi connected thermostats to remotely lower temperature set points, consequently shifting peak hour gas loads on event days.  Under the BYOT Program, customers are asked to shift part of their gas use out of peak morning or evening periods into other times of the gas day. This in turn, benefits both the environment and reduces the strain on the electricity grid and enhances the gas utilities capability to sustain supply reliability for consumers during peak winter heating incidents.

Demand response programs are expected to be an essential component of gas utilities system development in upcoming years and the commission intends to ensure these programs are cost effective.  Accordingly, the commission finds it reasonable to continue operating and expanding such programs in utility service territories.

Earlier in 2021, the commission ruled that the requirements of the 2019 Climate Leadership and Community Protection Act must be included into utility rate cases. The amendments to the programs offered by National Grid NY, KeySpan Gas East, and National Grid’s upstate gas business, are in accord with the act.

Natural gas demand-response packages offer a prospect for customers to take part in a vital part in the management of the natural gas network by lowering or altering their consumption during peak intervals in exchange for financial enticements. Demand-response programs are being utilized as reserve alternatives for stabilising supply and demand. Moreover, the load-shedding demand reduction program concentrates on commercial, industrial, and multi-family firm service customers capable of reducing their peak gas load over an eight-hour period on event days. Consumers are requested to lower gas usage during pre-defined times, both by closing off non-heating gas equipment or transferring to an alternate non-gas heating fuel resource during incidents.