Understanding Demand Response Programs in NYC

For building owners and managers in New York City, participating in Demand Response (DR) programs presents an opportunity to reduce energy costs, support grid reliability, and even earn revenue. With guidance from experts like Slattery Energy Consulting Group, led by energy consultant Jim Slattery, you can understand how NYC’s programs work, how local laws and regulations affect participation, and how energy rebates and incentives fit into the picture.

What is a Demand Response Program?

Demand Response programs are designed to reward consumers (residential, commercial, institutional) for reducing or shifting their electricity usage during periods of high demand on the grid. In NYC, the Department of Citywide Administrative Services (DCAS) has operated a Demand Response Program since 2013 for municipal facilities: when energy usage peaks, participating facilities reduce use, helping prevent grid stress, blackouts, or heavy reliance on inefficient backup power plants.

Participants aren’t doing this purely for altruism—they receive payments from utilities or grid operators for their load reductions. Municipal revenue from these programs has been reinvested into building improvements and energy efficiency upgrades.

Why It Matters for Building Owners

• Cost savings & revenue potential: For buildings with large electrical loads (commercial, institutional), reducing peak demand can lead to lower demand charges and earn incentive payments.

• Regulatory alignment: Participation helps with meeting local laws and energy regulations in NYC that push for emissions reduction and grid resilience.

• Environment & reputation: Lowering peak demand means less reliance on peaking power plants, which are often more polluting; participating facilities contribute to cleaner air and support sustainability goals.

How NYC’s DR Program Works (via DCAS)

• The NYC DCAS Demand Response Program is open to municipal utility accounts (i.e., where the City pays the utility bill) across a portfolio of city agencies.

• To participate, facilities are required to undergo a facility assessment. DCAS coordinates with a third-party vendor to audit the building and determine its ability to reduce electric load during DR events.

• Once approved, during peak demand events (for example, hot summer afternoons), participating buildings are asked to reduce load. The savings are measured, and payments are made accordingly.

Tips for Building Owners & How Slattery Energy Can Help

1. Assess your load profile: Understand which pieces of equipment or systems in your building (such as HVAC, lighting, and refrigeration) can be adjusted or curtailed during peak periods without compromising critical operations.

2. Upgrade systems & controls, such as smart meters, real-time monitoring, and building automation, to help you respond more effectively. They also support compliance with regulations/local laws around energy usage.

3. Engage an energy consultant or energy broker: With Slattery Energy, for instance, you can get expert advice on eligibility, optimizing participation, negotiating with utilities, and accessing rebates or incentive programs associated with DR.

4. Evaluate incentive & rebate opportunities: Often, programs aren’t just about reducing usage—they come with financial rewards and sometimes grants/incentives to support the infrastructure needed to participate (e.g., controls, metering).

5. Plan for regulatory & legal context: Stay current with New York State and NYC regulations, including local laws related to emissions, demand charges, benchmarking, and energy performance, to effectively integrate DR into your broader compliance strategy.

Energy Demand Response Programs In New York

At Slattery Energy Consulting Group, we help building owners in New York City navigate these Demand Response programs: from analyzing feasibility, modeling savings, helping with rebate captures, to making sure you meet all regulatory requirements. If you’d like to explore how your building can participate and benefit, contact us today!