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Title: Review of consolidated Edison`s integrated resource bidding program

Abstract

Competitive bidding has emerged as the dominant method for procuring new resources by US utilities. In New York, the Public Service Commission (NYPSC) ordered the state`s seven investor-owned utilities to develop bidding programs to acquire supply and DSM resource options. Utilities were allowed significant discretion in program design in order to encourage experimentation. Competitive bidding programs pose formidable policy, design, and management challenges for utilities and their regulators. Yet, there have been few detailed case studies of bidding programs, particularly of those utilities that take on the additional challenge of having supply and DSM resources compete head-to-head for a designated block of capacity. To address that need, the New York State Energy Research and Development Authority (NYSERDA), the New York Department of Public Service, and the Department of Energy`s Integrated Resource Planning program asked Lawrence Berkeley Laboratory (LBL) to review the bidding programs of two utilities that tested the integrated ``all-sources`` approach. This study focuses primarily on Consolidated Edison Company of New York`s (Con Edison) bidding program; an earlier report discusses our review of Niagara Mohawk`s program (Goldman et al 1992). We reviewed relevant Commission decisions, utility filings and signed contracts, interviewed utility and regulatory staff, surveyed DSM bidders andmore » a selected sample of DSM non-bidders, and analyzed the bid evaluation system used in ranking bids based on detailed scoring information on individual bids provided by Con Edison.« less

Authors:
; ; ; ;
Publication Date:
Research Org.:
Lawrence Berkeley Lab., CA (United States)
Sponsoring Org.:
USDOE, Washington, DC (United States); New York State Energy Research and Development Authority, Albany, NY (United States)
OSTI Identifier:
10181912
Report Number(s):
LBL-33599
ON: DE93040447; CNN: Contract 1515-EEED-BES-91
DOE Contract Number:
AC03-76SF00098
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: Jul 1993
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; 99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE; ELECTRIC UTILITIES; BIDS; CONTRACTS; NEW YORK; SUPPLY AND DEMAND; ENERGY MANAGEMENT; COST; COMPETITION; 296000; 990100; ELECTRIC POWER; MANAGEMENT

Citation Formats

Goldman, C.A., Busch, J.F., Kahn, E.P., Baldick, R., and Milne, A.. Review of consolidated Edison`s integrated resource bidding program. United States: N. p., 1993. Web. doi:10.2172/10181912.
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Goldman, C.A., Busch, J.F., Kahn, E.P., Baldick, R., & Milne, A.. Review of consolidated Edison`s integrated resource bidding program. United States. doi:10.2172/10181912.
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Goldman, C.A., Busch, J.F., Kahn, E.P., Baldick, R., and Milne, A.. Thu . "Review of consolidated Edison`s integrated resource bidding program". United States. doi:10.2172/10181912. https://www.osti.gov/servlets/purl/10181912.
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@article{osti_10181912,
title = {Review of consolidated Edison`s integrated resource bidding program},
author = {Goldman, C.A. and Busch, J.F. and Kahn, E.P. and Baldick, R. and Milne, A.},
abstractNote = {Competitive bidding has emerged as the dominant method for procuring new resources by US utilities. In New York, the Public Service Commission (NYPSC) ordered the state`s seven investor-owned utilities to develop bidding programs to acquire supply and DSM resource options. Utilities were allowed significant discretion in program design in order to encourage experimentation. Competitive bidding programs pose formidable policy, design, and management challenges for utilities and their regulators. Yet, there have been few detailed case studies of bidding programs, particularly of those utilities that take on the additional challenge of having supply and DSM resources compete head-to-head for a designated block of capacity. To address that need, the New York State Energy Research and Development Authority (NYSERDA), the New York Department of Public Service, and the Department of Energy`s Integrated Resource Planning program asked Lawrence Berkeley Laboratory (LBL) to review the bidding programs of two utilities that tested the integrated ``all-sources`` approach. This study focuses primarily on Consolidated Edison Company of New York`s (Con Edison) bidding program; an earlier report discusses our review of Niagara Mohawk`s program (Goldman et al 1992). We reviewed relevant Commission decisions, utility filings and signed contracts, interviewed utility and regulatory staff, surveyed DSM bidders and a selected sample of DSM non-bidders, and analyzed the bid evaluation system used in ranking bids based on detailed scoring information on individual bids provided by Con Edison.},
doi = {10.2172/10181912},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Jul 01 00:00:00 EDT 1993},
month = {Thu Jul 01 00:00:00 EDT 1993}
}
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Technical Report:
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DOI:  10.2172/10181912
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    In June 1988, the New York Public Service Commission (PSC) ordered the state's investor-owned utilities to develop competitive bidding programs that included both supply and demandside resource options. The New York State Energy Research Development Authority (NYSERDA), the New York Department of Public Service, and the Department of Energy's Integrated Resource Planning program asked Lawrence Berkeley Laboratory (LBL) to review the integrated bidding processes of two New York utilities, Niagara Mohawk and Consolidated Edison. This interim report focuses on Niagara Mohawk (NMPC). In terms of overall approach, our analysis is intended as a critical review of a large-scale experiment inmore » competitive resource acquisition implemented by New York utilities at the direction of their state regulators. The study is not a formal impact or process evaluation. Based on priorities established jointly with project sponsors, the report focuses on selected topics: analysis of the two-stage scoring system used by NMPC, ways that the scoring system can be improved, an in-depth review of the DSM bidding component of the solicitation including surveys of DSM bidders, relationship between DSM bidding and other utility-sponsored DSM programs, and major policy issues that arise in the design and implementation of competitive resource procurements. The major findings of this report are: NMPC's solicitation elicited an impressive response from private power developers and energy service companies. In the initial ranking of bids, DSM projects were awarded significantly more points on price and environmental factors compared to supply-side bids. NMPC's scoring system gave approximately twice as much weight nominally to price as to non-price factors (850 vs. 460 points).« less

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