Consolidated Edison Company of New York, Inc. (CECONY)

Utility Thermal Energy Networks Pilot Projects

In July 2022, New York State passed the Utility Thermal Energy Networks and Jobs Act. The passage was followed by an order from the New York State Public Service Commission’s (NYSPSC) in September 2022 requiring the seven largest gas and combination (electric-gas) utilities to propose at least one, and up to five, Utility Thermal Energy Network (UTEN) pilot projects within their service territories. UTEN pilot projects must include at least two standalone existing buildings, and must use the thermal network for heating, domestic hot water, and possibly cooling. CECONY released a Request for Information, in which sought ambient loop thermal network locations from existing developers. CECONY has proposed three pilot projects – Chelsea, Mount Vernon and Rockefeller Center – designed to provide unique insights that will promote learning and future promulgation of rules pertaining to UTEN. The pilot projects will develop and test solutions that can be cost-effective and scalable in the long-term by using new and innovative technologies. These technologies will then be applied to CECONY’s unique dense, urban service area. Two of the three projects are in disadvantaged communities. Commencement of the full project design is scheduled for first quarter of 2024.

Orange and Rockland Utilities, Inc. (O&R)

Utility Thermal Energy Networks Pilot Projects

O&R filed its proposed Village of Haverstraw UTEN pilot (Haverstraw Pilot) with potential anchor customers, including the Village Hall, a local elementary school, and a large real estate development. The Haverstraw Pilot will offer a number of benefits to the Village of Haverstraw as well as learnings from UTEN deployment. O&R will be providing the new development with an electrification alternative to a new gas service, thereby avoiding an extension of the gas system. This project will inform O&R on how best to approach and partner with future real estate development projects on the use of UTENs as an alternative to natural gas. In addition, the Haverstraw Pilot aims to investigate the potential of various thermal resources; geothermal boreholes, wastewater main, and the Hudson River.

Additionally, the proposed Haverstraw Pilot project is fully located within a New York designated disadvantaged community. The UTEN will provide service to buildings in the downtown area, including residential properties, shops, restaurants, businesses, municipal facilities, parks, and recreational facilities. The new real estate development will include income restricted residential units, 40 of which will be reserved for homeless veterans. The community center houses the Village of Haverstraw Department of Youth and Family Services – which serves all residents by providing comprehensive services. It also promotes the health, safety, and well-being of all residents, while raising the quality of life for all people living in the Village’s diverse community in a spirit of non-partisanship and cooperation. Haverstraw Elementary School serves over 500 students from fourth to sixth grades. The connection of the community center and Haverstraw Elementary School to the Haverstraw Pilot should result in lower energy costs for both facilities. These savings could then be used to support additional programs to benefit the community and students.

Innovative Storage Business Model Demonstration Project

As the State pursues 6,000 MW of energy storage by 2030, O&R’s innovative storage business model demonstration project is evaluating the services that behind the meter (BTM) batteries can provide across multiple use cases, thereby improving project economics. This project will help us understand how aggregated BTM batteries can provide benefits to our distribution system, New York Independent System Operator markets, and host customers. Advances in energy storage systems will further improve the efficiency of O&R’s electric delivery system and will play a critical role in adding renewable energy production to the New York grid. To date, our partner in this project, Sunrun, has installed approximately 140 units; and the program is forecasted to achieve its goal of 300 systems (~2MWs) installed in 2024.

Smart Home Rate Demonstration Project

O&R piloted a new ‘interval-based’ rate in its Smart Home Rate (SHR) demonstration project. The SHR project tested how residential customers and those with customer-sited distributed energy resource assets respond to innovative pricing signals designed to incent efficient grid use. The SHR project ended in March 2023 and showed that applying a new demand-based rate structure, coupled with smart thermostat automation, successfully led to shifts in usage that reduced demand during higher priced peak periods. This demonstration project produced valuable information that will help inform the design and implementation of future demand-based pricing structures.