Understanding Energy Management
in Your Region: PJM
Did You Know?
≥ 1 MW during the highest peaks of the year can save anywhere from $40,000 to $180,000/MW-year.
New Challenges Require New Strategies to Deliver Energy Savings
Weighing the Options
Reducing energy consumption when the grid is stressed can earn large energy users incentive payments from the system operator or can help reduce costs by avoiding high power charges.
Traditional demand response providers offer programs like Capacity Performance, Economic DR or Synchronized Reserves. However, this approach only captures part of the value.
The Rodan Difference
Our Technology
Our Approach
Receive Alerts so You Know When to Curtail
– We Make it that Simple
Peak Notification
Forecasting Accuracy with Rodan’s Peak Notification System
- Forecast updated hourly versus a few times a day from the PJM ISO.
- 24/7 Network Operations Center & system monitoring.
- Live energy experts.
Flexible Notification Preferences
- Customized to your preferences.
(email/text/phone)
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Capacity and Transmission Charges
How Demand Charges Are Set
Capacity Charges
- Costs are passed on from the PJM System Operator.
- Referred to as Peak Load Contribution (PCL).
- Five Coincident Peaks (5CP) or Cap Tag.
- Frequency & Duration: (5) 1-hour intervals with the highest demand on the PJM system.
Transmission Charges
- Infrastructure and operating costs to build and maintain high-voltage electrical power, passed on from the Utility.
- Referred to as Network Integration Transmission Service.
(NITS) or Trans Tag - Frequency & Duration: (1-12) 1-hour intervals (depending on zone) with the highest demand on the Utility’s system.
Reducing Utility Demand Charges
Utilities charge your transmission, distribution and capacity demand charges.
- Capacity charges have been decreasing over the last 10 years because there is more generation available in reserve to meet demand than required.
- This downward affect on pricing has therefore decreased the ability to generate adequate revenue solely from the Capacity Performance Demand Response Program. (2022)
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Changes in PJM Cost of Electricity
Transmission Charges Continue to Increase
Did You Know?
- Delivery charges for large users comprise 25-50% of the total cost of electricity.
- Transmission charges comprise the largest component of delivery charges.
- These charges are based on the facility’s usage that coincides with peak demand on the grid. Depending upon the utility, it could be 1-5 annual peaks. This is less than 1% of annual facility consumption.
Thought Leadership
Thought Leadership
Learn more about how we are delivering across North America
Learn more about how we are delivering across North America
