Revenue for Energy Curtailment — New York State
This New York State program is sometimes called Curtailment. Commercial businesses are paid to reduce their normal electrical use when requested. A twenty-one hour advance alert is provided to member firms advising them of either an upcoming test or a scheduled event. Firms willing to reduce their electricity usage by 300 kilowatt hours (KWH) or more will be compensated for their participation and compliance.
This program consists of two possible tests and whatever number of “events” are required by the state. A test requires a firm to reduce power use for a one hour period. A test may be called in either the spring, the fall, or both.
Firms must also commit to participate in all required events. An event requires firms to participate for a minimum of four hours. Firms can commit to longer time periods if they have the capability when they sign their contracts.
Firms agree at contract signing to the number of kilowatts (KW) they will reduce when an event is called. When firms reduce their electrical use by the contracted amount, they receive checks ranging in size from $300-$400 to as high as $300,000, $400,000, $500,000 or more, depending upon the amount of their electrical reduction. Checks are distributed twice each year.