Understanding Energy Management
in Your Region: PJM

The PJM Energy Market Landscape is Changing

Did You Know?

Businesses that can curtail
≥ 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

On-going grid modernization and the transition to cleaner, renewable generation have increased the cost to deliver power to businesses. In PJM the charges to pay for the infrastructure needed to deliver power to your facility may be as much as half of the total cost of electricity.

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 Technology
Rodan uses data analytics and advanced AI with proprietary algorithms to forecast when the grid will be strained so that our customers know when to strategically reduce their energy consumption at the times when utilities calculate costly delivery charges on your utility bill.
Our Approach
Our Approach
Rodan works with your facility to develop strategies and solutions to intelligently reduce power usage without impacting productivity, so you can take full advantage of all these opportunities.

Receive Alerts so You Know When to Curtail
– We Make it that Simple

Peak Notification
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
    (NITTS) 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?

Reducing 1% of Annual Energy Consumption Can Reduce 50% of Your Electricity Bill
  • 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.