Brooklyn-Queens Demand Management Descending Clock Auction

Challenge

Consolidated Edison of New York (CECONY) needed to obtain distributed energy resources (DER) to avoid or defer major infrastructure upgrades for the Brooklyn-Queens Area. The utility wanted to see if an innovative approach to procuring DER would lead to better results than the traditional procurement processes. The effort was part of CECONY’s Brooklyn-Queens Demand Management (BQDM) pilot program.

Solution 

Guidehouse worked collaboratively with CECONY to design and run a descending clock auction to obtain DER that could meet the required load reductions by time period to defer or avoid infrastructure upgrades. Guidehouse helped CECONY: 

• Develop bidding blocks and bidding rules
• Define a required standard contract with no exceptions
• Reach out to potential suppliers, including pre-event education conferences, and evaluate qualifications for firms to participate in the auction
• Develop an internet-based platform for bidding
• Manage the auction, including multiple rounds in one day, and select the winning portfolio of bids
  
  

Impact

CECONY was able to procure a diverse portfolio of DER to meet its needs at a competitive price and with shortened timelines for contracting.