As New York’s grid heads into another critical summer, building owners and managers are facing a rapidly changing landscape. Demand Response (DR) is no longer just an optional revenue stream. It is becoming a core strategy for maintaining grid stability and protecting buildings from escalating energy risks.

NYISO’s most recent reliability studies point to possible reliability violations in New York City beginning in Summer 2026, driven by generator retirements, rising electricity demand and transmission constraints.

Why This Conversation Matters Now

New York’s energy system is at a turning point. Peak demand continues to rise, and the grid is becoming more dependent on tools like DR. For buildings, this means two things:

1.     Expect more DR events

2.     Expect DR obligation to become more valuable and more operationally important

With these shifts underway, WellStat sat down with Jordan Barowitz, a leading Demand Response consultant, to unpack what’s coming, how buildings can best prepare and where the biggest opportunities lie.

To start, how would you describe the current demand response climate in New York?

New York’s power system is at a critical inflection point. In 2019, the City and State passed landmark and ambitious climate legislation. Today, these policies have entered the implementation stage and, unfortunately, the transition to renewables and the necessary infrastructure have not advanced as anticipated. This has put considerable stress on our electrical grid and made DR programs even more important. Summer 2025, saw a record number of DR events in New York and the cold snap in February challenged the regions supply of natural gas triggering more CSRP events. DR is a vital component of our regions electrical infrastructure and leveraging incentives for DR programs is not just a prudent business decision, but critical for business continuity.

DR providers with deep operational experience and real-time monitoring capabilities are uniquely positioned to help clients navigate this environment.

NYISO has warned about reliability issues starting as soon as Summer 2026. What does that mean for building owners and managers?

The time to enroll in DR programs is now. For large and complex energy users, throttling-down load requires expertise, experience, and acumen. This is the season to prepare for summer power surges, take advantage of the economic incentives and protecting our grid from failure and reducing reliance on carbon intensive fuel.

For operators new to DR, what is the simplest way to think about “being ready”?

Navigating DR programs requires the expertise of experienced operators. Office buildings cannot turn off their AC systems nor can industrial users off their assembly lines when energy demand peaks. DR requires an integrated platform that not only reduces load but does not interfere with operations and provides real-time data and is easily accessible to monitor performance and results.

What are the biggest mistakes you see buildings make during DR events?

Unfortunately, DR events are becoming more prevalent and their scope is longer. It is imperative that buildings’ DR programs acknowledge and plan for “DR Fatigue.”  DR programs must be achievable and sustainable and not burden operations and staff. When crafting a DR program, buildings must plan for events that can last multiple days and not interrupt building operations or business practices. Today’s DR environment requires sustained programs that adapt to multiple and extended DR events.

The most effective DR providers anticipate these challenges, offer flexible automation and adapt to extended events without compromising comfort or productivity.

What should buildings prioritize now for the upcoming2026 summer season?

Be prepared for a summer that challenges our electrical grid. DR is one of the few opportunities to constructively manage an energy environment with rising prices and declining reliability. Seeking out responsible DR providers is one of the few tools that building operators must do to lower costs, increase reliability, and reduce carbon emissions.

Providers with a proven track record in complex operations can turn participation into a seamless process, minimizing disruption to occupants, and maximizing incentives. By leveraging predictive analytics and proactive event management, these providers help buildings not only respond to events but anticipate and adapt to them, creating measurable savings and supporting grid stability at scale.

For building owners trying to evaluate whether DR is “worth it,” what is your take?

DR is more than a new revenue streams, it protects the grid from failure and staves off costly, and frequently deadly, power outages. DR is moral imperative that makes economic sense.

If you could give one piece of advice to building teams going into 2026, what would it be?

The energy market is in a state of flux. Demand is rising, supply is increasingly restricted and electrification is driving winter peaks imminently. As we transition to renewables, expect lots of bumps, and the regulatory environment to lag markets. DR programs are invaluable tools to manage a rapidly changing environment to earn incentives, support grid stability, and lower emissions.

Leading the Way in Demand Response

WellStat delivers the ideal DR solution by combining advanced technology and hands-on operational expertise to reduce load without disrupting operations. With proven success managing demand response for some of the largest and most competitive commercial buildings in New York City, WellStat has set the standard for reliability, optimization and revenue performance.

Looking Ahead: Preparing for the Summer DR Season

With rising electricity demand and shrinking grid stability expected to test New York’s power system this summer, WellStat believes building owners should focus on several key priorities:

1.     Reinforcing Load Flexibility

Longer DR events are increasingly likely. Buildings without a clear multi-hour strategy risk under-performance during the highest-value events.

2.     Aligning with a Changing Grid

NYISO forecasts show the rising electrification may shift New York from a summer peaking to winter peaking system in coming years. Buildings participating in DR today will have a natural advantage as new markets evolve around winter flexibility.

3.     Preparing for Heavier DR Reliance

As NYISO and Con Edison work to address upcoming reliability shortfalls, DR is slated to play a critical role in bridging the gap.

Demand Response is no longer just a cost-reduction initiative. It has become a meaningful revenue opportunity for buildings that can deliver consistent, predictable flexibility when the grid needs it most. As New York heads into a period of higher demand and shifting program requirements, buildings that prepare now stand to maximize DR earnings, strengthen operational resilience, and reduce risk during peak grid conditions.

WellStat is committed to helping buildings unlock these benefits through intelligent automation, real-time performance visibility, and strategic DR guidance—ensuring you are equipped to earn more, adapt faster, and stay ahead of what is coming.

About Jordan:

With more than 25 years of experience at the crossroads of New York politics, government, civic life, sustainability and real estate, Jordan brings unique experience, relationships, and understanding that help guide businesses and institutions through multi-dimensional challenges at the intersection of PR, government and community relations, and sustainability.

Jordan crafts compelling stories that break-downcomplicated environmental and engineering subjects into accessible narratives. Heoversaw PR in the development and opening of the City’s first LEED PlatinumSkyscraper at One Bryant Park. He is a thoughtful voice in the implementationof Local Law 97, and the challenges of de-carbonizing New York City’s builtenvironment.

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