Jamie Collins, Secure Energy Solutions

Data collection and analysis is creating a number of opportunities for large commercial and industrial customers interested in implementing energy management strategies to reduce costs, curtail consumption and minimize environmental impacts. 

One data-driven solution increasingly popular among New England businesses is peak load contribution (PLC) management – a strategy that naturally complements other efficiency efforts and initiatives to reduce usage.

Understanding how to manage PLC values requires a basic knowledge of utility costs, including how they are calculated and passed through to end users.

In short, typical retail products for large commercial and industrial customers translate capacity charges into a volumetric cost-recovery model based on consumption. However, capacity numbers are set by the utility based on a customer’s coincident peak demand.   

In most deregulated markets, the PLC values of large commercial and industrial customers are measured several times a year based on their individual electric load during periods when demand on the grid was at its highest in the previous planning year. The value is then used as a multiplier to calculate capacity costs in the current operating year.

However, in New England, PLC values are determined by consumption measured once: during the single highest period of peak demand. These capacity charges can be more than a third of the total bill in certain utilities, representing a significant cost-reduction opportunity.

Although there is no way to predict exactly on which date and time the highest peak period will occur, technology is providing businesses with the ability to pinpoint opportunities more accurately allowing then to manage their consumption accordingly.

Certain suppliers provide PLC management services that deliver daily updates on the likelihood of a critical peak, recommended load reduction start and end times, the forecasted peak load, and the day’s forecasted peak hour. On days with a high probability of achieving a critical peak, users receive email notifications to prompt the initiation of energy management strategies, whether to curtail consumption or to draw power from non-grid sources such as solar panels, generators or batteries.

The amount and type of data provided depends on the supplier and service the client ultimately chooses. However, generally speaking, these data-driven solutions can deliver reliable and actionable intelligence to help organizations lower PLC values and put them on a path to savings.

Other popular data-driven solutions support energy conservation objectives by providing insight into real-time load and pricing. Available advanced reporting technologies help businesses optimize electricity usage, energy demand, and market opportunities in real time for a more environmentally responsible and manageable load profile as well as a lower cost of energy.

At the end of the day, knowing your organizational goals and drivers is key to determining which service and supplier best meets your needs. Contact Secure Energy and speak with an expert that has extensive relationships with retail providers at the forefront of today’s data-driven energy environment. As seasoned energy professionals, we can help you understand the options, determine the right supplier, and build the best energy strategy for your business.

Jamie Collins is the senior vice president of business development for Secure Energy Solutions, East Longmeadow, Mass.