  This paper presents the results of a benefit-cost analysis involving the
application of battery energy storage systems (BESS) for three of New York
State's municipal electric departments (MEDs). New York's municipal electric
utilities generally have allocations to receive hydroelectric energy from the
New York Power Authority (NYPA). When the NYPA firm hydro allocation is
exceeded, the utility must procure energy from other sources, generally at
significantly higher prices. Additionally, the municipal utility pays to
transmit the energy from the generation source to the utility gateway. There
are multiple ways that these MED's can use energy storage technology to reduce
their costs. This paper develops benefit and cost analyses, and concludes that
BESS technology is cost-effective in some cases, and will become more
cost-effective in the future as battery prices decrease.
