Power Efficiency Corp. won its bid to provide Con Edison 12 MW of demand response energy in the summer months of 2017 and 2018.
The auction was part of the innovative Con Edison program to defer $1 billion in infrastructure expenditures required for Richmond Hill, Ridgewood, and Crown Heights networks in Brooklyn and Queens by reducing 52 MW of peak load in the BQDM area through a combination of customer sided solutions (41 MW) and non-traditional utility sided solutions (11 MW). Con Ed sought 41 MW in commitments for 2017 and 2018 from companies, with an objective to use these demand side resources to reduce peak summertime loads on the electric grid in this territory.
Scott Caputo, president and COO of Power Efficiency Corp., commented, "We are pleased to win this bid and be selected to provide cost effective smart grid solutions to this very important market. We plan to implement a variety of measures to meet our 12 MW commitment that will include the curtailment of load associated with traditional Demand Response, as well as battery energy storage and clean power generation. We look forward to working together with Con Edison and others participating in the BQDM program, to meet our nation's growing demand for energy."
Participants in the Consolidated Edison program are required to enter into certain contractual agreements with Consolidated Edison which set forth the parameters of the demand reduction requirements which will be accepted by consolidated Edison, as well as certain financial guarantees which must be provided by participants. Power Efficiency Corp. will be required to deliver a standby letter of credit by Aug. 31, 2016, in order for the contract with Consolidated Edison to be completed. Management believes it will be able to comply with the contractual requirements, including the delivery of the standby letter of credit in a timely manner. In the event that it is unable to meet the requirements, Consolidated Edison may decline participation by the company.
