Energy is the lifeblood of New York City, and over the past few summers, there have been major power outages that, in the broiling heat, have stopped the city cold, leaving it powerless to prevent power failures.

In October 2006, the New York State Energy Research and Development Authority (NYSERDA) awarded Consumer-Powerline (CPLN; www.consumerpowerline.com) incentives in the Aggregated Load Reduction Program under the Power Saving Partners initiative. This initiative provides funds to help manage and reduce energy usage, especially during peak periods. CPLN, a full-service strategic energy asset management firm, received the go-ahead to use the three-year, multi-million-dollar peak electric load-reduction contract to enhance the reliability of the New York City's power grid in times of stress, by working with the city's commercial, industrial and residential buildings to undergo energy-efficiency upgrades that reduce peak electric load.

The contract commits CPLN to develop and implement 14 MW of new electric load reductions, specifically in areas served by Consolidated Edison, which is enough to keep the lights on in 14,000 homes. In the last three months and well ahead of schedule, the energy firm has garnered commitments for peak load reductions from major area health-care facilities, multi-family housing and large commercial real-estate management firms to the tune of 3.2 MW. CPLN is continuing to develop projects around New York City to meet its 14-MW goal.

By using a range of peak load-reduction projects, facilities are compensated on a dollar-per-kilowatt basis, earning up to US$735/kW of capacity that their initiatives create. Strategies include:

• Curtailment and load shifting for demand response

  Facilities curtail load to respond to grid emergencies through manual operations, or by adding automation algorithms and new remote-control features to building management systems.

• Distributed generation for demand response

  Facilities activate new or existing generators during grid emergencies, increasing overall grid capacity. The incentive also pays for adding automation to enhance reliability, and adding additional electric load and emissions controls.

• Cogeneration

  Facilities install cogeneration systems that permanently reduce summer peak electric demand.

• Permanent efficiency

  Facilities undertake energy-efficiency upgrade projects that permanently reduce their electricity consumption.

For more than five years, CPLN has worked with large-scale energy users in the New York City metropolitan area to increase energy efficiency and turn existing energy assets into recurring sources of revenue. As a result of its work over the years with large building owners and management companies, CPLN has helped New York City avoid significant energy disruptions. By marshalling the energy of its clients, CPLN helps New York City fend off blackouts, brownouts and voltage reductions.