In recent years, indoor humidity levels are gaining greater attention in building design and operation, due to the increasing concern over moisture-related problems, such as mold growth, indoor air quality and discomfort of the occupants. At the same time, building energy consumption, especially at peak electric demand, is also becoming a significant operating cost conern. It has been suggested that besides energy recovery, the inclusion of an energy recovery ventilator (ERV) with a right-sized cooling coil can improve temperature and humidity control in buildings. ERV also has the potential to reduce peak electric demand. This paper presents the methodology and the findings from modeling the effect of an enhanced latent effectiveness ERV on indoor thermal conditions, system sizing and behavior, and system energy consumption under different system scenarios (with ERV and/or economizer and bypass mode), based on a generic building configuration. The applicability and effectiveness of the ERV for different climatic conditions as well as different outside air flow rates are also discussed.