Natural Gas Demand Response Program for Firm Customers

Customers may enroll in the Companies' Commercial, Industrial and Multifamily Programs directly with National Grid (as a Direct Participant) or through a Third-Party Aggregator. A direct participant may self-aggregate multiple individual accounts of their own.

The incentive for this program is based on the amount of reduction you can offer within the plan option you choose, subject to your performance during events. An estimate of your incentive is up to 15% of your annual gas spend. Please see the table below for participation options. Your maximum potential incentive will be estimated during review of your application. The Direct Control participation option earns higher incentives. “Direct Control” means National Grid is able to switch customer equipment during tests or events.

Load Shedding Demand Response Program

Option	Event Hours	Direct Load Control
Non-DLC	6-10AM and/or 4PM-8PM	No
DLC	6-10AM and/or 4PM-8PM	Yes

Load Shifting Demand Response Program

Option	Event Hours	Direct Load Control
Load shifting	6-10AM	No

1. This program is NOT available to interruptible or Non-Firm service customers. Customers enrolling in the Load Shedding option will require an alternate fuel source, such as oil, propane, or electric heating, to participate. Customers willing to turn off non-heating loads (i.e., process loads, electric generation, etc.) are also encouraged to participate. Participating customers must reduce their gas usage during Demand Response Event days. The Demand Response Events will only last for a pre-determined period of time (please see previous table for participation time options).
   
   
2. Demand Response Events may be called for days when forecasts indicate the low temperature at either Republic Airport or LaGuardia Airport will be at or below 10° F.
   
   
3. Your rate won’t change, which means no changes to your bills, billing cycle, or anything else.
   
   
4. We will arrange the installation of simple devices that will allow us to monitor your usage and possibly switch your equipment during events if you choose the Direct Control option. National Grid equipment and installation is free. However, there may be costs to you associated with electrical fit-out needs or customer equipment compatibility.
   
   
5. Notifications for events will be sent no less than 20 hours before the start of an event (i.e. by 10AM the day prior to the event morning).
   
   
6. Incentive payments will be mailed out within 90 days of March 31, 2026. Incentive levels are based on customer-enrolled  demand reduction amounts, subject to performance during events. There are no penalties associated with not performing during an event.
   
   
7. Program available to National Grid Firm Commercial, Industrial, and Multi-Family customers in Brooklyn, Queens, and Long Island (excludes Staten Island).
   
   
8. Customers can earn incentives of up to 15% of their annual gas bill. Incentives will be calculated based on performance during events in the season.

The following are the Winter 2025-2026 incentive rates for both reservation and performance payments:

Program Option – Load Shedding	Event Window(s)	Reservation Payment	Performance Payment
Non DLC	6-10AM and/or 4-8PM	$46/Dth/Month	$20/Dth
DLC	6-10AM and/or 4-8PM	$55/Dth/Month	$20/Dth

Program Option – Load Shifting	Event Window(s)	Reservation Payment	Performance Payment
Non DLC	6-10AM	$50/Dth/Month	$20/Dth

Note: 1 Dekatherm (Dth) = 10 Therms (Th) = approx. 1,000,000 BTU’s.

You will have the option to increase your earnings up to 20% when applying your incentive to an energy efficiency project. The deadline to apply for the additional incentive is May 31st following the end of the GDR season, and is based on funding.

Incentive Match Application

 

Incentive calculation example

See below Reservation and Performance payments sample calculations for a single account, enrolled in the Load Shedding – non DLC program option:

Month	Enrollment	Reservation Rate	Monthly PF (rolling)	Reservation Payment
Nov	180 Dth	$46/Dth/Month	100%	$8,280
Dec	180 Dth	$46/Dth/Month	89%	$7,369
Jan	180 Dth	$46/Dth/Month	89%	$7,369
Feb	180 Dth	$46/Dth/Month	89%	$7,369
Mar	180 Dth	$46/Dth/Month	87%	$7,204
Total Reservation Payment				$37,591

• Monthly Reservation Payment:
• Reservation Payment = Event Enrollment (Dth) * Reservation Rate ($) * Performance Factor
• Monthly Reservation Payment (Nov) = 180 Dth/Event (enrollment) * $46 (monthly reservation rate) * 100% (PF) = $8,280

• Event Performance Payment:
• Performance Payment = (Event Dth Reduced – Less Pre-Heat/Snapback) * Performance Rate ($)
• Event Performance Payment = 100 Dths (Net Daily Reduction) * $20 (Performance Rate) = $2,000 
  where Net Daily Reduction = Event Reduction – (Pre-Heating + Snapback Increases)

 

DR Incentive Match calculation examples

See below DR incentive match sample calculations for 2 customers whose EE projects cost more than their DR seasonal incentive (which they decided to invest fully towards their EE project):

Customer	DR Incentive	EE Project Cost	Incentive Match	Payment to EE vendor
A	$25,000	$27,500	10% ($2,500)	$27,500
B	$25,000	$50,000	20% (Max - $5,000)	$30,000

See below DR incentive match sample calculations for a customer whose EE projects costs less than the DR seasonal incentive. In this case, the DR incentive payment can be split, between funding the EE project and the remaining portion being paid out to the customer as normal:

Customer	DR Incentive	EE Project Cost	Incentive Match	Payment to EE vendor	Payment to Customer
C	$25,000	$20,000	20%	$20,000 ($16,666 DR Incentive + 20% Incentive Match)	$8,333 (Remaining core DR Incentive: $25,000 - $16,666)

Definitions:

• Reservation Payment: Payment based on a customer’s potential event dekatherm reduction (as determined by National Grid) for each month of the winter season, subject to adjustments based on the customer’s Performance Factor.
• Performance Factor (PF): Percent value assigned to each account based on a 3-event rolling average of performance. The Performance Factor will be applied to Customer’s monthly incentive payment at the close of each month. Account Performance Factors will carry over into future seasons.
• Event Performance Payment (or Energy Payment): Payment equal to the applicable Energy rate per dekatherm of natural gas curtailed by Customer during a Demand Response Event or Test Event.
• Preheating and Snapback: Three hours before and after a Demand Response Event window, respectively, during which National Grid also tracks the gas consumption of program participants. If consumption is higher than the calculated baseline during these periods, these increases will be subtracted from the Event Reduction to obtain the Net Reduction.

• Frequently Asked Questions (PDF)

• To obtain information related to your customers' participation in the Natural Gas Demand Response Program for Firm Customers, email us at gasdr@nationalgrid.com stating your request, name, and contact information, along with a Letter of Authorization from your customers authorizing you to receive such information.
  Download Letter of Authorization Template
  
  
• To receive Natural Gas Demand Response Program event notifications, email us at gasdr@nationalgrid.com stating your request. Please list your name, your company name, and all the email addresses and corresponding contact information you'd like to include in the Gas DR event emailing list.

We are now accepting new curtailment service providers (CSP) for our gas demand response programs. If you are interested in becoming an CSP, please complete and submit the Provider Agreement below via email to gasdr@nationalgrid.com.

Once registered, aggregators must complete and submit the application form and attachment sheet to enroll customers in the program. Aggregators must also submit a valid W-9 and Letter(s) of Authorization (for customers who are part of an Aggregation, if applicable), via email to gasdr@nationalgrid.com or through your National Grid Sales Representative.

Questions? Email us

Application   Application Attachment   Provider Agreement