Conference Call: How to Save 5% on Your Electricity Bill

Capacity Tag Management--How to save 5% on your electricity bill

The SouthCoast Electric Power Group (SCEPG) will be hosting a conference call for members and prospective members on Tuesday, June 25, 2013 at 9:00a.m. During the conference call, we will have representatives of our consultant, SourceOne and our supplier, ConEdison Solutions, on hand to discuss strategies to manage a component of your electricity costs called capacity costs more effectively. 

A customer’s capacity tag is an important determinant of a customer’s overall electric supply cost.  Capacity tags are set on an account by account basis.  Your local utility company, on a backward looking basis, will look at your demand on the peak hour of the peak day for New England ISO.  This peak hour of the peak day is generally the hottest day of the year.

Some SCEPG members have been able to have an impact upon these capacity costs by reducing load on days when it is likely that the system will set a peak load.  This discussion will focus on how SourceOne and ConEdison Solutions can provide “predictive” information that can help customers minimize this portion of their electricity bills.  We will share an example of a member who has successfully managed these capacity costs and overall monthly peak electricity demand.

What can I save?
Assume capacity costs approximately $3.75/kW/ month.

Assume an account uses 1,000,000 kWh and has an icap tag of 250 kW.

A customer’s capacity cost for a year would calculated as 250 kW x $3.75/kW/month x 12 months= $11,250.

On a per kWh basis, this customer’s capacity costs would be $.0113/kWh
If a customer was able to reduce their usage on the peak hour of the peak day, they could impact their icap tag for the following power year.  A reduction of 80 kW in this example would save $3,600 or $.0036/kWh. This would amount to about a 5% savings on a $.075/kWh price.  There are also benefits to be seen on your NSTAR or NGRID bills.

How do I sign up?
Participation in the conference call is free for Chamber members, but PRE-REGISTRATION IS REQUIRED. Please register by clicking the blue "Register Online" button above, by emailing events@newbedfordchamber.com or calling 508-999-5231, ext. 26.

Conference call details will be emailed to registrants prior to the call.