Friday, June 28, 2019

Peaking Load Contribution: Electricity Demand Charges

Our Recommendation

We recommend that, whenever possible, you reduce your electricity usage from 3:00 p.m. to 6:00 p.m. Friday, June 28, 2019. Your PLC can influence 10-30% of your electricity bill, so by lowering your PLC this summer you will be able to reduce your PLC and overall electricity costs for a full twelve-month period starting next summer (June 1, 2020, to May 31, 2021).


About PLC

Effective June 1 of every year, each electricity account is assigned a PLC number by its utility. This number is based on the peak usage, which is calculated using five hours from the prior year with the highest PJM system demand, excluding holiday weekdays and weekends. (Note: The selected hours come from five different 24-hour periods.)  Peak usage generally occurs on the five hottest days of the year – and this summer's usage will affect the PLC for next summer.

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