Peak Reduction Program
The program is a partnership between
LIPA and Long Island businesses to assure
that electric demand can be met on certain
days during the summer months when
customer demand for electricity might
exceed supply available from the grid.
Participating customers are asked to agree
to a “contracted demand” which is the
level of electrical demand the customer
will shed when requested by LIPA.
All program participants are notified by
LIPA at least four hours prior to a
request to shed electric load between the
hours of 2 PM and 6 PM. Customers who
participate and successfully achieve their
contracted demand reductions will receive
a credit on their electric bill statement
at the end of the year. If the customer
uses on-site generation to participate in
the program, the New York State Department
of Environmental Conservation (DEC)
requires the customer to register the
generator with the DEC. The customer may
be required to use ultra low sulfur diesel
fuel when available. LIPA will reimburse
the customer for the registration fee and
the cost differential between standard
fuel and ultra low sulfur diesel fuel.
LIPA’s program is separate and distinct from the New York System Operator’s (NYISO) Emergency Demand Response Program (EDRP). This load reduction option gives LIPA ‘s Peak Reduction Program participants the opportunity to increase compensation levels by adding additional load shedding opportunities as a NYISO EDRP participant.
All commercial/industrial customers who can reduce their electric demand by at least 50 kW on critical days when called upon to do so by LIPA.