New York Approves National Grid Demand Response Changes, Advances $33 Million Program

The New York State Public Service Commission on Oct. 15 approved National Grid’s proposed changes to its demand response programs, aiming to reduce peak energy demand and improve program efficiency. The revisions reduce annual testing requirements, lower enrollment thresholds and recommend transitioning multifamily customers from National Grid’s thermostat program to the statewide Excelsior Power Program, or EPP.

The EPP will establish a centralized platform for enrolling eligible residential devices in utility programs that manage electricity and natural gas demand. It will consolidate existing programs that remotely operate participating smart thermostats and residential energy storage systems to reduce peak consumption. Participation will remain voluntary, with customers required to opt in.

Currently, utilities administer these programs separately by service territory and energy commodity. A statewide platform is expected to simplify enrollment, reduce costs through collective procurement of platform services and enable broader participation. Coordinated management of residential devices could also help utilities manage periods of high energy demand more efficiently.

The initiative will introduce a $25 monthly utility bill credit for the first year for new participating smart thermostat customers. However, customers enrolled in utility smart thermostat or Bring Your Own Thermostat programs before passage of the 2026-2027 state budget will be ineligible for the enhanced incentive.

Governor Kathy Hochul’s fiscal year 2026-2027 state budget allocates $33 million to support the program. The funding will help establish the centralized platform and expand residential participation in demand response initiatives.

The commission’s approval advances the program’s implementation process, with the Phase 1 implementation plan open for public comment.