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Electricity Capacity Auctions Results Unexpected in Both MISO and PJM

           US - Energy News
 
Chart 3 Represents - PJM/DAYTON Yearly Capacity Price
 

We are often asked questions about the impact of capacity costs on each customer’s price of electricity. The impact of capacity pricing on a customer’s overall energy price is very much customerspecific. The main driver is a customer’s load factor. In layman’s terms, load factor is the customer’s average load divided by the customer’s peak demand. The higher this number, the more efficient a customer’s load and the impact of capacity pricing will be less. We perform customer-specific capacity analysis that breaks down a customer’s capacity costs into an estimated per kWh price so that the customer understands the impact that capacity pricing has on their total electricity costs.

Bold= estimates

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Alfa Energy Group

Alfa Energy Group, an Edison Energy company, is an international energy, sustainability and technology consultant partner with 250 employees over 3 international locations. For over 25 years, Alfa has been servicing its clients’ needs through energy and water management, sustainability, and compliance consulting, and an intuitive ecosystem of user-driven energy, water, and carbon management software platforms. With coveted awards, an international industry-wide recognition, and clever simple solutions, today Alfa is partnering with clients to establish and deliver pivotal net zero strategies. Through smart energy management, the expertise and diligence of its people, transparent processes, and data management, Alfa continues to lead through its recognised gold standard of service delivery.