Peak Load Management
Curtailing your energy usage during times of peak energy demand can have a positive impact on your overall electricity costs.
What is Peak Load Management?
Peak Load Management requires curtailing your energy usage during periods of peak demand to lower your facility’s PLC tags.
Your PLC tags, or Peak Load Contribution tags, are assigned by your electric utility based on your usage during periods of peak grid in the previous year. How your PLC tags are calculated is up to your grid operator (such as PJM or NYISO).
Capacity costs can make up 20 to 30 percent of your facility’s monthly electric bill.
Your monthly capacity cost is based on how much electricity your facility was using during a set period in the previous year when demand on the grid was at its peak.
Think of summer days when it’s extremely warm and everyone is using their air-conditioning. This would be a time when there is a lot of electricity demand and could be considered a “peak day.”
How do you lower your capacity costs?
You can lower your capacity costs by reducing the amount of electricity you’re using on those peak days. Your facility will be assessed at a lower capacity value, which results in lower PLC tags assigned to your facility the following year.
How do you know when it’s time to curtail?
A Peak Day Alert gives you the date and hours in which the grid will likely be at its peak. You typically receive these alerts the day before and the day of the potential peak, which allows you to plan if and how you are going to curtail your usage during those hours.
