Peak Shaving is a strategy customers use to lower their overall energy price by reducing usage on the five peak days in a year used to determine Capacity and Transmission tags.
Capacity and Transmission make up about 40% of your electricity price. But, if you’re strategic about it, you can avoid a higher capacity and transmission tag and lower your bills for the the future.
Picture a baseball season where only five games matter all year: do well in those five and make the playoffs, do poorly in those five and you’re done for the season. It wouldn’t seem fair to disregard the rest of the season and only look at five games, right? But as long as teams knew the rules and could predict the five games that matter, they could all be strategic and try to win those 5 games. That’s the peak day model in a nutshell!
Customers can essentially avoid the obligations to pay for up to 40% of their price if they’re able to cut back, either through scaling back operations or turning on a generator, on the five peak days.
Two key necessities to successful Peak Shaving:
Cutting back is up to your company, but you don’t have to guess the five peak days alone! There are companies that work with customers to help them predict the peak days in their utility and notify them to drop usage at that time. They typically work on a shared savings basis which means the risk to the customer is very low.
Shipley Energy partners can predict the five days with impressive accuracy, help you successfully peak shave, and empower you to avoid paying up to 40% of your electricity price.
If you think this may be a fit or you’d like to learn more, contact your Shipley Energy account manager today.