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Report: N.Y. Customers Don't Shift Energy In Response to Hourly Priced Default Service, Based On Survey of Twelve Customers

January 4, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Electric customers at Consolidated Edison in New York do not shift energy in response to mandatory hourly priced (MHP) default service, a report filed by ConEd indicated, based on the survey responses of 12 customers.

ConEd had previously made waves in 2012 when it filed a consultant's report which quantitatively concluded that expanded hourly priced default service did not lower peak usage. As a result of PSC Staff's skepticism of such study's conclusions, as Staff cited several flaws with the study, ConEd, in a new report on the MHP program, conducted a qualitative analysis of customer behavior.

ConEd solicited 1,242 MHP customers (those for which ConEd had an email address) for participation in a survey regarding the MHP program. After repeated solicitation attempts, twelve customers agreed to participate in online qualitative interviews through an online bulletin board. Six of the twelve customers surveyed were full service Con Edison customers who are billed supply under the MHP rate and six survey participants were ESCO customers in the MHP class who are not billed at the MHP rate as they are enrolled with an ESCO.

Surveyed customers represented varying business profiles including Commercial Property Management, Commercial Real Estate, Medical Facilities, Hospitality/Hotel, Telecommunications, Financial/Trading, and the beverage industry. The majority of these customers were based in Manhattan with some based in Westchester, Brooklyn, and one based in Queens.

ConEd reported that the surveys, "indicated that the energy efficiency strategies of all MHP eligible customers, including those with an ESCO, do not involve responding to price signals or shifting energy."

"Customers noted that the business entities they represent, i.e.: commercial property owners, large telecom companies, and other similar businesses, require a consistent level of energy consumption leaving minimal opportunities to shift energy, or, that their usage depends on their tenants which is difficult to control," ConEd said

While peak load shifting was not practiced, customers did act to reduce overall usage (which would have the benefit of reducing usage at the peak as well), as ConEd reported, "Despite limited opportunities to shift energy usage, participants did express an energy efficient mindset. Participants take various measures to monitor energy usage and research ways to be more efficient. For example, they control their usage by using energy efficient lighting, appliances and systems, checking for leaks, and turning off lights/appliances/equipment when possible. Participants indicated they continually look for ways to reduce their energy and costs while maintaining or enhancing operations. They look to varying sources for tips on energy efficiency, such as information from NYSERDA, local utilities, energy consultants, equipment manufacturers, energy providers, and industry colleagues. Some participants noted that they have received Energy Star and LEED distinctions."

Despite the finding, ConEd still recommends lowering the hourly pricing cutoff from 500 kW to 300 kW, noting that, "Expansion of the MHP program will provide more customers with access to detailed usage and price signals that are currently unavailable. This detailed usage and price information will help customers better control their energy and encourage the reduction of peak usage by responding to price signals through customer engagement in energy management strategies consistent with policies outlined by the Commission in the MHP Proceeding and Reforming the Energy Vision initiative."

Case 13-E-0030

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