Tesla Inc (TSLA) Continues To See Battery Traction With Public Utilities

Tesla Inc (NASDAQ:TSLA) appears set to strike a partnership with another public utility operator, this time in New York State.

Teslarati has the details on a new proposal that would see a collaboration between Tesla and a key utility company that provides power to thousands of residents:

Orange and Rockland Utilities, a utility provider that is part of Consolidated Edison, Inc., recently submitted a proposal to collaborate with Tesla in the creation of a battery storage solution for New York residents. With the system in place, O&R expects its customers to see up to a 70% reduction in the demand charges on their electricity bills.
The Consolidated Edison utility provider submitted the proposal for the project on February 6 to the New York Public Service Commission. If the initiative does get approved, Tesla would be working closely with the utility provider to develop multi-use strategies that balance dispatch among stakeholder groups, including consumers who would be participating in the project.

O&R described exactly how the collaboration would work in a statement to the American Public Power Association. “These strategies will be guided by algorithms and protocols, designed by Tesla, to deliver optimal dispatch for the aggregated portfolio, maximizing the portfolio value among customers, the distribution grid, and Tesla. Under this demonstration, the flexible operating characteristics of distributed energy storage will be employed to obtain the highest value use of the resource at any point in time,” the organization noted.

Tesla has made significant progress with similar partnerships in Europe and Australia recently, particularly when pairing its batteries with green energy production like solar and wind power. The proposed collaboration between O&R and Tesla would earn some $788,000 annually, the organization noted, with 90% of those funds going to O&R and 10% going to Tesla.

Tesla Inc shares were trading at $334.70 per share on Friday morning, up $0.64 (+0.19%). Year-to-date, TSLA has gained 7.50%, versus a 2.23% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #10 of 24 stocks in the Auto & Vehicle Manufacturers category.