CORE STRENGTH SHOWS DURING SUMMER
Summer, with all of its associated stress on electricity grids, is less than one month away. Therefore, now is a perfect time for businesses in the Midwest and Northeast to take advantage of Calpine Energy Solutions’ voluntary Capacity Obligation Reduction Effort (CORE) program, which runs from June 1 through September 30 (July 1 through August 31 in NYISO), to give themselves the best chance to save on their capacity costs for next year in MISO, PJM, NYISO, and ISO-NE.
As a refresher, consumers’ capacity charges in those markets are based on both local capacity auction clearing prices and the consumers’ peak load contribution (PLC), their share of the total system load during the peak-load hour of the peak-load day of the preceding year (actually the peak-load hour of each of the five highest peak-load days of the previous year in PJM). If a firm can reduce its PLC, the ensuing drop in its capacity costs will show in its electricity bills for the next planning year.
To help customers exploit this market feature, Calpine Energy Solutions’ CORE team utilizes its sophisticated forecasting system to alert them, sometimes several days beforehand, to potential peak-load days. Suited to a customer’s particular conditions, each announcement proposes a specific date and hours for conserving power by perhaps turning off some lights, raising the thermostat setting, or shifting production to off-peak hours. After the ISOs publish their official system peaks, Calpine Energy Solutions will, upon request, issue a “SCORE Card,” like the one shown below, which projects a customer’s annual capacity savings.
To ask questions or learn more about the benefits of CORE, e-mail CORE@calpinesolutions.com.