The Program
Under the Day-Ahead Demand Reduction Program (DADRP), customers agree to reduce load when wholesale electric market prices exceed a predetermined "strike" price. Con Edison aggregates the load reduction nominations from customers and submits them to the New York Independent System Operator (NYISO) for evaluation. The NYISO accepts these load reduction nominations as needed. Customers receive incentives based on forecasted wholesale prices for the load reductions if their nominations are accepted.

How It Works
Customers enrolled in the program receive an e-mail from Con Edison indicating the forecasted price of electricity for specific times of the day that will be used for the price of upcoming load reductions. The forecasted price is for specific hours during the day. If a customer wants to participate at that price, the customer sends an e-mail to Con Edison with its proposed load reduction bid. Con Edison notifies the customer if the bid has been accepted by the NYISO.

Requirements
Customers choosing this option must agree to stay on the rate for a minimum of one year. Customers also must have an interval meter (s) with a telephone line (s). The meter measures and records electrical use each hour; the data are used to verify load reduction and calculate appropriate payment. Incentives are available for the cost of the interval meter installations through New York State Energy Research and Development Authority (NYSERDA).  For more information, visit  www.nyserda.org/programs/peakload/intermeter.asp or call 1-518-862-1090.

Customer Eligibility
Any full-service Con Edison customer who has an interval meter and who is capable of reducing load by at least 100 kW per account through load curtailment can participate.

Incentives
Customers are paid at least the forecasted price of electricity which will not be less than $.05 for each kilowatt-hour curtailed. As an added bonus, customers will receive Internet-based software, which can be used to identify ways to reduce electricity consumption and lower operating costs.

Penalties
Customers must buy back any shortfall in load reduction at either the day-ahead or the real-time hourly price, whichever is greater.

How to Enroll
Contact Con Edison at dsm@coned.com, or call 1-800-643-1289.