ERL East River Landing
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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?