For PJM customers, each customer’s capacity rating/obligation is determined each year by measuring their peak demand during their zone’s five highest peak demand hours coincident with the five hours of the summer when the overall PJM system demand is the highest. These two sets of five coincident demands are averaged and adjusted to determine a customer’s contribution to the system load, creating their capacity obligation for the next period [a customer’s capacity obligation for the 2018-19 capacity year will be determined during this summer (June 1-September 30)].
For our ComEd customers, Alfa Energy provides a peak demand event warning notice that attempts to warn customers when those five peak hours may occur. If a customer can reduce their demand during those five hours, there can be significant savings in a customer’s future capacity costs.
Analyst – David Mousseau
Source – PJM, Midwest Independent System Operator (MISO)