COINCIDENTAL PEAK
2024 ALERTS
Reduce electricity consumption on the Peak Demand Day
5 will send out a weekly outlook, similar to a 7-day weather forecast, that alerts clients to the days that have a high potential to be a high electricity demand day. When an alert is issued, consider taking some of the following actions in the afternoons to reduce electric load:
- Pre-cool buildings in the early afternoon and adjust the thermostat up through the projected peak demand period
- Reduce fan speeds on air handlers
- Dim or completely turn off lights
- Turn off pumps, air compressors or other high-demand equipment, if possible
- Consider adjusting operational hours or scheduling downtime in the afternoons
With high energy prices, any steps taken to curtail electricity during this summer’s CP intervals will help lower your business’ electricity costs throughout 2025.
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*Details for each regional power grid are below.
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ERCOT’s 4CP Program
The Texas program is referred to as 4CP for the four summer months that are used to determine important parts of next year’s electricity bill. Specifically, a facility’s demand (in kW) during the four highest 15-minute intervals on ERCOT’s grid in June, July, August and September is measured by each utility to set the coincident peaks. The four monthly, 15-minute values during these intervals are averaged together to determine the 4CP demand value used by TDSPs during the next calendar year for all transmission charges.
PJM’s 5CP Program
PJM applies a similar methodology to determine each electricity meter’s CP value but takes the five highest hours from the five highest peak days during June, July August and September. Unlike ERCOT, those five hours of the summer are not limited to a single day in a given month. In PJM, it is possible that multiple peak days and hours value could be set during a single five-day heatwave. Last summer, the 5CP hours in PJM were set during three consecutive days in July and two days in August. The average of those five hourly demand values on those five highest days determines a meter’s Peak Load Contribution (PLC) or Capacity Obligation for the following planning year. PLC values set this summer will determine a meters PLC/Capacity Obligation for PJM’s planning year from June 2025 to May 2026.
PJM covers: Pennsylvania, New Jersey, Maryland, DC, Delaware, Ohio & Illinois
NYISO 1 CP
Unlike ERCOT and PJM, the NYISO uses the single highest hour of demand on the grid in July and August to determine a meter’s capacity obligation or installed capacity (ICAP) tag. That hour can occur on any day in either month that is not a weekend or a holiday. A meter’s ICAP tag is determined by measuring its demand value during that hour of peak demand on the grid. The ICAP value from this summer will determine your capacity obligation beginning in May 2025.
