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1199 <strong>East</strong> <strong>River</strong> <strong>Landing</strong><br />

Demand Response Project<br />

LC Associates<br />

34 W 32nd Street, 8th Floor<br />

New York, NY 10001<br />

Ph: 212 - 579 - 4236<br />

Fax: 646 - 349 - 2928<br />

www.cutone.org


WHAT?<br />

ConEdison and the New York Independent System Operator<br />

(NYISO) will pay customers to temporarily reduce energy use<br />

during times of high electric demand.<br />

The New York State Energy Research and Development<br />

Authority NYSERDA will pay customers to install control<br />

systems to automate a temporary reduction in energy use<br />

during times of high electric demand. LC Associates has<br />

secured $899,000 to offset the cost of installing a dependable<br />

wireless control system at <strong>East</strong> <strong>River</strong> <strong>Landing</strong>.


WHY?<br />

ConEdison is required by law to provide New York City with<br />

electricity on demand.<br />

Typical Electric Usage in Summer<br />

Peak time of day<br />

Off Peak<br />

Off Peak<br />

9AM 1PM 7PM 9PM<br />

New York City’s highest demand for electricity, occurs for a<br />

short period of time lasting about 4 hours during weekdays<br />

in the summer. Power plants in the State of New York and<br />

elsewhere are turned on and left running on idle during all<br />

other times, which caused unnecessary pollution and cost to<br />

rate payers.<br />

As demand for electricity in New York City grows and older<br />

power plants such as Indian Point come offline, New York<br />

City will then have to build expensive and polluting power<br />

plants within the city limits which will sit idle and wait to make<br />

electricity for only a short amount of time when demand for<br />

electricity is high.


WHY?<br />

A better solution!<br />

Rather than build a new<br />

pollution contributing and<br />

expensive power plant in<br />

New York City, The State<br />

of New York would rather<br />

pay electric use customers<br />

to temporarily reduce their<br />

demand for electricity<br />

during this time.<br />

This New York State run program<br />

is called the “Demand Response”<br />

Program. When ConEdison or<br />

the NYISO asks customers to<br />

temporarily reduce their energy<br />

consumption, it is referred to as a<br />

“Curtailment Event”. Curtailment<br />

Events only occur during the<br />

weekdays typically from 1pm<br />

to 6pm and can last from 1 to 4<br />

hours max.<br />

ConEdison is allowed to call a maximum of 6 curtailment<br />

events per season but rarely calls more than 1 curtailment<br />

event per year. Conedison or the NYISO only give 24 hours<br />

notice! When one participates in a Curtailment Event they are<br />

“Curtailing” or in the act of “Curtailment”.


HOW?<br />

Most users who participate in the<br />

Demand Response Program do<br />

so in a manual fashion. Demand<br />

Response Program participants<br />

would typically manually shut off<br />

lights, turn on generators, or shut<br />

equipment that may not be needed.<br />

If users curtail, they are paid based<br />

upon the amount of curtailment. If<br />

users do not curtail at all, they will<br />

not get paid for the current and<br />

subsequent season!<br />

Historically most curtailment<br />

events occur during hot summer<br />

weather around holidays<br />

or when users may be short<br />

staffed. As a result users may<br />

not curtail, or may not curtail to<br />

their fullest potential leading to<br />

reliability issues and ConEdison<br />

cannot fully rely on users that<br />

merely just agree or pledge to<br />

curtail.<br />

In order to address the reliability issue, New York State via<br />

NYSERDA has offered to pay to offset the cost of installing<br />

automatic curtailment controls into buildings. These control<br />

systems are called Automatic Demand Response systems or<br />

ADR systems for short. By installing an ADR system, users<br />

can automatically curtail their discretionary electric loads at a<br />

moment’s notice even when they are short-staffed or are in<br />

the middle of a holiday week!


The case for 1199<br />

<strong>East</strong> <strong>River</strong> <strong>Landing</strong><br />

Given that <strong>ERL</strong><br />

demonstrated that it<br />

could curtail 1,000 kW<br />

voluntarily and in a<br />

manual fashion.<br />

LC Associates<br />

was able to secure<br />

$899,000 in a onetime<br />

cash payment<br />

from ConEdison to<br />

offset the cost of an<br />

Automated Demand<br />

Response (ADR)<br />

system that could also<br />

be leveraged for other<br />

future applications such as<br />

security and alarms.<br />

1199 <strong>East</strong> <strong>River</strong> <strong>Landing</strong> has<br />

participated in the Demand<br />

Response Program for a<br />

number of years but has only<br />

been able to curtail about<br />

200kW by shutting down<br />

equipment in their common<br />

areas. LC Associates was<br />

hired by <strong>ERL</strong> to evaluate<br />

their potential to increase<br />

the amount of pledged kW<br />

they could deliver into the<br />

Demand Response Program<br />

and found that the maximum<br />

kW that could be curtailed for<br />

a short period of time was in the<br />

vicinity of 1,700kW.<br />

<strong>ERL</strong> later engaged LC Associates,<br />

an authorized Curtailment Service<br />

Provider (CSP) to manage <strong>ERL</strong>’s<br />

Demand Response Program. A<br />

pilot project was implemented<br />

where the shareholders were<br />

invited to participate in the<br />

Demand Response program by<br />

shutting down their air conditioners<br />

during the curtailment event in<br />

addition to curtailing only the<br />

common areas, and the result<br />

was that <strong>ERL</strong> curtailed over<br />

1,000kW!


Design for<br />

<strong>East</strong> <strong>River</strong> <strong>Landing</strong><br />

Wireless Controller<br />

in each floor<br />

Security Cameras<br />

Sprinklers<br />

DATA RISERS<br />

AC Controllers<br />

ADR<br />

Smoke Detectors<br />

Flood Alarms<br />

Internet Cloud<br />

(First Floor)<br />

Phase 1<br />

ADR<br />

Security Settings<br />

Phase 2<br />

Other Systems<br />

A main wireless controller for each floor will be installed in<br />

the janitors closets and will be able to communicate to the<br />

switches in each of the apartments on their respective floors.<br />

The controllers will be initially designed for Demand Response<br />

protocols but can be leveraged for other future controls as<br />

well such as alarms and lighting controls.


Design for<br />

<strong>East</strong> <strong>River</strong> <strong>Landing</strong><br />

Given that the ADR system would have some of its wireless<br />

devices in the apartments of the shareholders, LC Associates<br />

has designed an aesthetically pleasing wirelessly controlled<br />

high power switch sized specifically for the largest air<br />

conditioner that would be found in a shareholders apartment.<br />

The switch will have the following features:<br />

One non-switched dual<br />

110Volt outlet with a courtesy<br />

USB charging station.<br />

One low power z-wave<br />

wireless switch driving a<br />

high powered 30 Amp relay<br />

for the air<br />

One 220V or 110V air<br />

conditioner outlet which will<br />

be a replacement in kind to<br />

what is existing.<br />

One snubber circuit to<br />

protect the relay contactors<br />

and also extend the life of<br />

the outlets.


Design for<br />

<strong>East</strong> <strong>River</strong> <strong>Landing</strong><br />

Communication will consist of two Power over Ethernet (PoE) data risers<br />

in each building. The Risers will incorporate a network hub on each floor<br />

that will communicate to the z-wave controllers and also provide them<br />

with power. This greatly reduces the cost of the installation as many of<br />

the janitors closets do not have working electric outlets and a PoE system<br />

does not require them so they are not necessary.<br />

The PoE system will also be able to support PoE enabled video cameras<br />

and other similar equipment for which <strong>ERL</strong> is planning on installing next<br />

year. By participating in this Demand Management Program, <strong>ERL</strong> will<br />

greatly reduce its cost of installing video cameras and other devices since<br />

the backbone will be existing and paid for through the NYSERDA program.<br />

Software control will be the most intensive task for this project and LC<br />

Associates has designed an algorithm that will be executed and deployed<br />

as soon as <strong>ERL</strong> gives final notice to proceed with this project. The<br />

Software platform will consist of a configuration panel that will categorize<br />

each apartment as participating, partially participating, or not participating.<br />

Curtailment events will be broadcast via email and text in addition to<br />

telephone calls and any modifications in regards to opting in or out will be<br />

done by automatically via software and supervised via a human operator.


FINANCIAL<br />

BENEFITS<br />

$60<br />

Per controlled AC per season<br />

45%<br />

Participation rate<br />

Daily weekday<br />

load<br />

4 H<br />

<strong>ERL</strong> can expect to<br />

save $120,000 per<br />

year in electric costs<br />

Participation in<br />

Demand Response Program<br />

is expected to generate<br />

between $70,000 and<br />

$130,000 annually<br />

$220,000<br />

TOTAL ANNUAL REVENUE FOR THIS PROJECT<br />

Monthly Electric Savings 18,333<br />

Service Charge for Project 7,500<br />

Net MONTHLY Savings 10,500<br />

1.26M<br />

Savings over the<br />

life of the Project<br />

The total implementation of the project after the cash<br />

payment from NYSERDA is applied, is 900K<br />

LCA will finance the entire project<br />

through a Shared Savings Agreement with 1199 <strong>ERL</strong><br />

where the balance will be repaid through savings over<br />

10 years and can be a service charge to your electric<br />

or gas bill.


CRITICAL<br />

Project Schedule<br />

JAN 16<br />

MAR<br />

1-30<br />

Order materials 6<br />

week lead time,<br />

begin developing<br />

software portal,<br />

install data risers.<br />

Complete assembly<br />

of wireless control<br />

panels and ship to<br />

customer site<br />

APR<br />

1-15<br />

Begin testing of<br />

mockup apartment<br />

installations<br />

APR 1-<br />

MAY 15<br />

MAY 15-<br />

JUNE 1<br />

Install wireless<br />

controls in all<br />

participating<br />

apartments.<br />

Complete ADR<br />

control programming<br />

and commission<br />

system<br />

JUNE 1<br />

START<br />

Deadline or forfeit for<br />

cash


Frequently Asked<br />

Questions<br />

How will we know<br />

who participates?<br />

What if someone<br />

wants to opt-in or<br />

out of the program?<br />

What is Z-Wave?<br />

When will my air<br />

conditioner be<br />

cycled off?<br />

Who will manage<br />

the ADR system?<br />

The z-wave controllers will keep track of who<br />

participates or not through the software portal.<br />

Shareholdres will get 24 hours notice of a<br />

curtailment event. If they were opted in and<br />

want to opt out or viceversa, they could reply<br />

by email, text or phone and they will be opted<br />

out.<br />

Z-Wave is a wireless standard incorporation,<br />

an Interest of Things (IoT) topology. The<br />

Z-wave technology is in many household<br />

items such as controls security systems and<br />

appliances. It allows these devices to talk<br />

to each other. This is an open standard and<br />

allows us to mix and match equipment from<br />

different vendors.<br />

If a tenant participates in the daily load<br />

reduction program, their air conditioner will<br />

be typically cycled off from 12pm to 4pm<br />

weekdays and those times may be adjusted.<br />

If a tenant participates in the Demand<br />

Response Program, then they will receive 24<br />

hours notice and their air conditioners will be<br />

shut off for 1 to 4 hours during a weekday,<br />

typically between 12 and 4 pm for a maximum<br />

of 6 times per year.<br />

LC Associates will maintain a database of<br />

users and a custom software cloud based<br />

platform will be used to configure, supervise<br />

and control the system.<br />

Can I participate<br />

for less than 4 Yes tenants can participate for 15 minute<br />

hours in a daily or minimums.<br />

demand response<br />

curtailment?

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