Press Releases
ConsumerPowerline Hails Regulatory Victory Expected to Protect New York City Against the Risk of Summer '07 BlackoutRevenue Opportunity for Local Businesses to Safeguard City's Electricity Supply Closing Soon
NEW YORK, March 13, 2007 - ConsumerPowerline (www.consumerpowerline.com), a noted energy management firm, today lauded the Federal Regulatory Commission's (FERC) decision to protect New York City's energy markets by rejecting a proposal that the firm had warned could destroy the city's demand response program, and lead to blackouts this summer.
In a March 6th decision that the energy firm says helps preserve demand response and protect New York from the likelihood of "going dark," this summer, FERC rejected the New York Independent System Operator's (NYISO's) plan to ratchet down price caps for New York City's reserve power, to which three major power generators are subject.
ConnsumerPowerline (CPLN) had argued that a plan to lower price caps could wipe out an industry that has played such a significant role in the reliability of the power grid-and place New York City at risk of major blackouts this summer.
CPLN president and founder Mike Gordon said, "We're committed to work with all willing parties to propose specific and sustainable market fixes, near and medium-term, and to contribute to Mayor Bloomberg's call for a 'plan for sustainability' issued on December 12, 2006."
"We're a city that runs on electricity, yet some of our power grid dates from the 1920s,'" the Mayor said that day.
The city's Demand Response Program- a kind of 'electricity insurance policy' - depends on participation from large energy users who are paid to relieve the electricity grid when the threat of a power outage looms. In 2006, Mayor Bloomberg requested a program increase for Demand Response. This was part of a "Comprehensive Reliability Planning" effort to launch "an innovative three-year initiative to reduce peak electric demand by a total of 675 megawatts-or the equivalent of a large power plant."
The Mayor has consistently backed demand response; all parties are currently aiming for demand response help to be brought to bear as rapidly as is possible.
ConsumerPowerline's Mike Gordon, widely quoted on the issue over the last several weeks, said today, in the wake of FERC's decision, that "the NYISO proposal, backed by Con-Edison and the state Public Service Commission, was dangerous in its prospective impact on the reliability of our power supply. We felt that the solution had not been adequately thought through. This was a victory of reason: FERC was wise in injecting caution and the need for real world market analysis amidst this rush to conclusion. This week, we will agree on an administrative law judge, who will adjudicate what we hope will be a consensus solution, cobbled out over the next thirty to sixty days."
The demand response "electricity lifeline" currently pays large energy consumers close to $60 million each year, to protect New York's energy security. In a February 26th Bloomberg News wire story, by Tina Seeley, the NYISO's Garry Brown was quoted as saying, "Our demand-side programs are really important to us. '' Seeley further characterized Brown's perspective that price declines could affect those programs, and quoted Brown again, directly: "No studies have been done that detail the effects. It's kind of all anecdotal, we don't have any data." Ms. Seeley additionally quoted Mr. Gordon: "[The NYISO proposal is] like using a meat cleaver to do a triple- bypass operation."
"Now, due to this decision, we can double our commitment to demand response in the next three summers," said Gordon. "Perhaps we can get most of the way there, by May of this year." Gordon concluded. The market closes for Demand Response participation on March 30th.
New York City companies such as Morgan Stanley, Macy's, New York University, CB Richard Ellis, Starwood Hotels and Resorts and dozens of others, help the city keep the lights burning through their participation demand response. In connection with its commitment of support for these programs, ConsumerPowerline today announced the formation of a coalition of market participants, the New York Coalition for Power Reliability ("CPR") that would heed the Mayor's call to organize concerted expansion of critical electric supply reliability programs.
About ConsumerPowerline
ConsumerPowerline (www.consumerpowerline
ConsumerPowerline was recently selected for the Inc 500 list for 2006, Deloitte's Technology Fast 500 Award, as well as being the recipient of the Ernst & Young Entrepreneur of the Year Award for Emerging Business. ConsumerPowerline's client list features notable public and private firms including: CB Richard Ellis, Morgan Stanley, Macy's, Starwood Hotels, Hines Property Management, Forest City Ratner Corporation, Co-op City, Macklowe Properties, RFR Realty, NYU Medical Center, Newmark Properties, Douglas Elliman Property Management, Cooper Square Realty, Wentworth Management and dozens of other substantial end-users of energy.
PR Contact:
Nina Velasquez
Kwittken & Company
646.747.7161
nvelasquez@kwitco.com