Frequently Asked Questions
What is a capacity charge?
How are capacity charges calculated?
Capacity charges are not based on the amount of energy you use during a given month. Instead, capacity charges are determined by the five highest one-hour system coincident peaks (5CP) on the electric grid. Your average demand during the 5CP comprises your “capacity tag” or Peak Load Contribution (PLC). The system peak hours occur during the hottest weekdays of the summer between June and September.
The grid operator determines the PLC hours after September 30th of each year, and the utility passes on the associated capacity tag to you during the following year.
How do capacity charges impact my organization?
What types of energy reductions can I make?
Enel X has extensive experience creating energy reduction strategies that work within the operational limits of a wide variety of facilities, including cold storage, manufacturers, food processors, universities, malls, office building and more. Common reduction examples include:
- Reduce non-essential lighting
- Modify manufacturing processes
- Adjust HVAC equipment
- Dial back pumps
- Change settings in industrial freezers
Ask about our experience working with customers like you.
How does Enel X’s System Peak Predictor Work?
Our market analysts assess the probability of a system peak every day. If the probability is high, we notify you. The more you can reduce energy usage during peak periods, the lower your PLC charges will be in the following PJM Planning Year (June 1 – May 31).
- 1. Monitor: Combining our proprietary predictive analytics (based on the more than 1 billion points of energy data we collect each month) with externally-sourced weather and market data, we continually monitor the market to assess the likelihood of a system peak.
- 2. Notify: During high seasons, we email you by 10:00 a.m. daily, advising you on the probability of a system peak occurring that day. Your color-coded notification will also include an outlook to help you and your staff plan for the week ahead.
- 3. Respond: On high-probability days, existing Enel X demand response customers simply implement their energy reduction plans when notified. If you’re not an Enel X customer—no problem. Our team of experts will design an energy reduction plan that works for your site. On low probability days, no action is necessary.