Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Sanford Bernstein 2014 Investor Conference on Energy Efficiency, Power Demand Growth and t
28 slides from Consolidated Edison's conference presentation, Nov 18, 2014
Slide 1: Energy Efficiency & Distributed Generation: The Implications for Utilities, their Business Model and Regulatory Structure
Energy Efficiency & Distributed Generation: The Implications for Utilities, their Business Model and Regulatory Structure November 18, 2014 Rebecca Craft Director, Energy Efficiency and Demand Management Con Edison
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain forward-looking statements intended to qualify for safe-harbor provisions of the Federal securities laws. Forward-looking statements are statements of future expectation and not facts. Words such as "expects," "estimates," "anticipates,"
Slide 3: Energy Efficiency & Demand Management
Energy Efficiency & Demand Management
Slide 4: Glossary
Glossary • CECONY: Consolidated Edison Company of New York • O&R: Orange & Rockland • NYSERDA: New York State Energy Research and Development Authority • NYISO: New York Independent System Operator • PV: Photovoltaic (aka solar) • CHP: Combined Heat and Power • EEPS: Energy Efficiency Portfolio Stan
Slide 5: Historic and Forecasted Growth Rates
Historic and Forecasted Growth Rates Peak Demand* Historic Historic 2015-2019 2002-2007 2008-2013 Five-Year (Pre-Recession) (Recession**) Forecast CECONY Peak (%) Electric 1.8 (1.1) 0.9 Gas 1.0 1.6 2.8 Steam (0.8) (2.3) (0.8) O&R Peak (%) Electric 2.6 (0.6) 0.9 Gas (0.8) (0.6) 0.6 * Annualized growt
Slide 6: Electric Consumption by Customer Class
Electric Consumption by Customer Class U.S. vs CECONY U.S. CECONY 28% 38% 35% 70% 2% 27% Commercial Industrial Residential Commercial Industrial Residential Source: Bernstein Research, Consolidated Edison Company of New York 6 6
Slide 7: Energy Efficiency & Demand Management: CECONY Programs
Energy Efficiency & Demand Management CECONY Programs • 10 Energy Efficiency (EE) electric and gas programs (EEPS, 2009-2015) – 5 Electric, 5 Gas programs. Funded through bill surcharge – Commercial, small business, multi-family, and residential – Annual savings over 730,000 MWh, 281,000 participant
Slide 8: CECONY Historic Volume
CECONY Historic Volume CECONY Delivery Volumes (Weather Normalized) 80,000 70,000 60,000 50,000 Historic EE as % of Sendout* GWh 40,000 2008 0.60% 2009 0.51% 30,000 2010 0.63% 2011 0.96% 20,000 2012 0.60% 2013 0.63% 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Actua
Slide 9: Distributed Generation: Technology Trends
Distributed Generation Technology Trends Total Customers by Technology Total Installed Capacity 4000 160 MW 3500 140 MW PV 3000 120 MW CHP 2500 100 MW 2000 80 MW 1500 60 MW 1000 40 MW 500 CHP 20 MW PV 0 MW 0 Source: Consolidated Edison Company of New York 9
Slide 10: CECONY System Peak Demand Illustration
CECONY System Peak Demand Illustration 15,000 5-Yr Peak Reductions: Energy Efficiency Demand Response Codes &Standards 1.98% 0.20% 0.00% 14,500 Megawatts (MW) 14,000 13,500 13,000 12,500 2015 2016 2017 2018 2019 System Growth Electric Vehicles Demand Response Energy Efficiency CECONY Forecast Source
Slide 11: Network Peak Demand Growth Forecasts (with DSM)
Network Peak Demand Growth Forecasts Bottom-up Forecast with DSM included Yes Source: Consolidated Edison Company of New York 11 11
Slide 12: Network Peak Demand Growth Forecasts (without DSM)
Network Peak Demand Growth Forecasts Bottom-up Forecast without DSM included No Source: Consolidated Edison Company of New York 12 12
Slide 13: Reforming the Energy Vision
Reforming the Energy Vision (Se conEdison
Slide 14: New York Public Service Commission: REV Policy Goals
New York Public Service Commission Reforming the Energy Vision (REV) –Policy Goals • Enhanced customer knowledge and tools • Market animation and leverage of ratepayer contributions • System wide efficiency • System reliability and resiliency • Fuel and resource diversity • Reduction of carbon Sourc
Slide 15: Reforming the Energy Vision: Con Edison Perspective
Reforming the Energy Vision Con Edison Perspective Current Efforts Targeted Smart Energy Demand Distributed Demand Grid Efficiency Response Generation Management Solutions Opportunity for a Comprehensive Review Data, Distributed Technology Information Regulatory Rate Design Resources Platform & Othe
Slide 16: Track 1 – REV Straw Proposal: Utility Perspective
Track 1 – REV Straw Proposal Utility Perspective • Serve as the DSP to enhance system, market, and operational efficiency • Continue to own, operate and maintain a safe, reliable and resilient distribution network, including meters • Provide distribution network that serves as the platform for all p
Slide 17: Track 1 – REV Straw Proposal: Challenges
Track 1 – REV Straw Proposal Challenges • Incorporation of DER into planning process • Communication infrastructure and other investments • RPS and Energy Efficiency transition to utilities • Bill impact and flexibility for benefit cost analyses • Market Power concerns – real or perceived? • Develop
Slide 18: Track 2 - Regulatory Reform & Rate Design
Track 2 - Regulatory Reform & Rate Design Con Edison Perspective • Maintain aspects of current regulatory approach that will serve as the foundation of the future • Modify regulatory model to realize REV goals and objectives – Supplement traditional cost of service regulation with performance incent
Slide 19: Next Steps
Next Steps • Advocate for the long-term interests of all customers • Identify new roles and growth opportunities • Maintain a leadership role in the process • Seek ways to apply REV concepts – Demonstration projects – Application in load growth areas – Upcoming rate filings (O&R filing last week) –
Slide 20: Appendix
APPENDIX G conEdison, inc.
Slide 21: Historical Electricity Peak Demand
Historical Electricity Peak Demand* CECONY 14,000 13,000 9/11 The Great (2001) Recession 12,000 Electric Peak (MW) Decline (2009-2012) Enlightened 11,000 Energy Program Stock Market Crash 10,000 (1987) Oil Embargo (1973) Oil Shock Iranian Revolution 9,000 Iran/Iraq War (1979) 8,000 NYC Fiscal Crisis
Slide 22: CECONY Residential Building Permits
CECONY Residential Building Permits 40,000 36-year High occurred due to extension and then expiration of NYC Tax Abatement Program 35,000 30,000 Number of Permits Issued 25,000 20-Yr Average 20,000 15,000 10,000 5,000 0 2016 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 23: Energy Efficiency & Demand Response Programs
Energy Efficiency & Demand Response Programs By Customer Segment (2009 – 2014) Annual Savings Achieved to date (MWh) Cumulative Customer Participation 2% 5,561 8% 54,000 MWh 7% 47,000 MWh 22% 63,643 35% 261,000 MWh 3% 8,017 50% 73% 376,000 204,527 MWh Commercial and Industrial $300/MWH Small Busines
Slide 24: Commercial Demand Response Enrollment
Commercial Demand Response Enrollment CSRP - Commercial System Relief Program (aka Peak Shaving Program) DLRP - Distribution Load Relief Program (aka Contingency Program) MW Accounts CSRP DLRP CSRP DLRP 232 229 209 199 808 181 734 666 689 687 145 448 86 77 297 279 45 148 1 2 2010 2011 2012 2013 2014
Slide 25: Forecasted Demand Side Management in Electric System Planning
Illustration of Forecasted Demand Side Management Included in Electric System Planning Proactive DSM 280 275 270 Build needed 2016 265 Build deferred to 2018 MW 260 Build deferred to 2020 255 250 245 240 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Capacity Load no DSM Load with DSM Load with D
Slide 26: REV Timeline
REV Timeline Order Track 1 Track 1 Track 1 Party Reply Instituting Party Straw Order Comments Comments Proceeding Comments Proposal Track 2 Track 2 Track 2 Party Straw Order Comments Proposal EEPS/RPS expires Source: Consolidated Edison Company of New York 26
Slide 27: Distributed System Platform (DSP)
Distributed System Platform (DSP) • Diverse and distributed Integrated energy resources • Coordination with bulk System system Planning • Integration with market and operations drivers • Secure, reliable and resilience DSP Grid Operations • Flexible and dynamic • Economical and energy efficient • Ri
Slide 28: Track 1 – REV Straw Proposal: Utility Perspective on DSP
Track 1 – REV Straw Proposal Utility Perspective on DSP Wholesale Wholesale Generator Wholesale Generator Generator NYISO Operational Coordination Transmission Market Coordination DSP Utility Owned Generator Distribution Customer ESCO/Aggregator Customer Customer Customer Generator DG & DR DG & DR S