Proper Demand Control
Get better control over rising energy capacity costs
Energy Efficiency Done Smart
The Value of Capacity Management
Have you ever wondered who pays to keep the electricity grid reliable and ready to go whenever you need it? The answer is you, through a charge known as capacity, which accounts for up to 30% of your electricity supply costs.
Capacity is not created equal though; how much you pay depends on how much electricity you use and when you use it compared to every other customer within the transmission network.
This gives you the opportunity to make adjustments to your energy behavior and curb your capacity costs. And Alternative Utility Services has a suite of strategies that can help your facility do just this, including demand response participation, peak load contribution management, energy efficiency upgrades, and installing an emergency generator.
How It Works
Does your building have lights, appliances, or machinery that are non-essential to your operations? Wouldn’t it be great to get paid for simply turning them off for a few hours?
Well that is what demand response is all about. When the utility grid gets stressed, utilities are willing to pay customers like you to stop using electricity because it’s cheaper than turning on another generator. Some utilities will even pay you simply to be available to reduce electricity use, even if they ultimately never ask you to curtail your load.
And besides getting paid for reducing your load, your curtailment will also be reducing your future capacity costs because demand response events usually mirror the peak load times that determine your share of capacity, which means even more money is kept in your pocket.
Peak Load Contribution
How much your facility pays for capacity is largely dependent on your peak load contribution (PLC) number.
PLC numbers are calculated differently by each Regional Transmission Operator (RTO), which are responsible for grid reliability. In general, the more energy you use when the grid is stressed, the higher your PLC number will be.
And the higher your PLC number is, the more you will pay for capacity.
So the secret to lowering your capacity costs is to lower your Peak Load Contribution number.
Reducing your PLC number requires an understanding of how you can reduce your consumption when the grid is stressed, plus an electricity procurement strategy that reflects this effort.
Mike brings more than 20 years in sales and marketing experience, with over a decade of work in finance and business development.
He is responsible for establishing new business, structuring renewable project financing, and sourcing longer-term corporate access to the capital markets for future renewable energy and energy efficiency business growth.
Utilizing your generator in this regard will allow you to qualify for demand response programs and receive payments for your generation.
Additionally, you will be reducing the amount of energy that you draw from the grid during these high demand periods, which will reduce your PLC number and capacity costs, but will also offset transmission and distribution charges from the utility.
Less Risk. More Reward.
Learn how you can get the right Capacity Management solution for your building without any up-front investment
Don’t let budget constraints stop you from getting the energy efficiency upgrades you need to finally get your energy costs under control.
Talk to us and learn how our Energy Savings as a Service program might be a good fit for your situation, and get the Capacity Management solutions you need installed and serviced with zero investment and debt.
Great results start with great conversations.
Connect with our expert energy team and learn how our Capacity Management solutions might be right for your organization.