Energy Efficiency: Planning for Peak Alerts

Posted September 10, 2021 at 10:44 am

As heat waves roll through, organizations can expect to receive peak alerts, either from the team at TRSA Business Solutions Partner APPI Energy, or from your electricity supplier or local utility. While no one can know which days or hours will end up setting peak demand levels for the year, reducing your demand can help lower energy costs by lowering your peak load contribution (PLC) tags.

Electric utility companies measure and average each customer’s energy demand in kilowatts on the highest demand hours and days of each year. That average, known as your peak load contribution (PLC), can be reduced and managed through best practices. Utilities and competitive suppliers use PLC tags to help determine the cost of serving your account. This can impact both the supply and delivery sides of your electricity bill. In those markets that include a capacity market, electric utilities and suppliers use each customer’s PLC, or “installed capacity tag,” from the prior year to calculate monthly capacity costs. This can often amount to 10-25% of your total electricity supply charge. Your peak load contribution in 2021 will determine your monthly capacity costs in 2022.

Peak demand typically arises in afternoon hours, during summer months. Usage and demand can be reduced by dimming lighting, adjusting thermostat settings, shutting down equipment, using on-site power generators or scheduling operations during nighttime hours. Key factors to consider include:

  • Understanding when and how you use power
  • Spreading out energy-intensive processes
  • Considering programmable AC/heating controls
  • Opting for motion-activated lighting
  • Peak shaving using storage or alternative-energy sources
  • Point-of-use monitoring devices
  • Demand-response programs

It’s also worth making note of peak alerts as they come your way either from your APPI consultant, media outlets or your supplier, so that you can make smart, timely decisions on curtailing your energy use. To read the full article, click here. For more information, contact APPI Energy at info@appienergy.com or 800.520.6685.

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