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About MMA MunEnergy Reducing electricity use on peak days leads to savings
On Aug. 2, 2006, in the midst of a heat wave, the New England region hit a new record for electricity usage. Customers understood the importance of conservation to help prevent blackouts, but few were aware that their usage on that day also affected their electricity bills for the entire 2007 “power year” (June 1, 2007, through May 31, 2008).
Every year, electricity users are “tagged” by their usage on the peak use day for the power grid.
For electricity customers in New England, individual electricity usage at 2 p.m. on Aug. 2 was factored into an “Installed Capacity tag” (“ICAP tag”) used to assess future capacity charges for each electricity account.
Cities and towns with pass-through capacity charges can make a significant dent in their energy costs by reducing electricity use during the hour when the ICAP tag is determined. (MunEnergy customers that have chosen an all-in price will not be affected.)
The peak for the New England power grid typically occurs during a weekday afternoon in the midst of a heat wave when air conditioning usage is at its highest. By reducing electricity usage during this time, municipalities can lower their charges for the next power year.
Cities and towns can save on electricity costs by having a plan in place to scale back energy use during peak days. Closing a municipal building for an afternoon on the hottest days of the summer will result in electricity savings the following year. For buildings that cannot be closed, the New England Independent System Operator (ISO-NE) recommends raising air conditioning settings a few degrees, consistent with health and safety.
Constellation NewEnergy, the endorsed supplier for the MMA’s MunEnergy program, offers a load response program for municipalities that would like more immediate benefits for scaling back. Customers that enroll in this program earn payments year-round by scaling back electricity usage during grid emergencies. To learn more, contact MunEnergy program manager Emily Neill at (617) 772-7513, or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
About MMA MunEnergy Reducing electricity use on peak days leads to savings
Reducing electricity use on peak days leads to savings
On Aug. 2, 2006, in the midst of a heat wave, the New England region hit a new record for electricity usage. Customers understood the importance of conservation to help prevent blackouts, but few were aware that their usage on that day also affected their electricity bills for the entire 2007 “power year” (June 1, 2007, through May 31, 2008).
Every year, electricity users are “tagged” by their usage on the peak use day for the power grid.
For electricity customers in New England, individual electricity usage at 2 p.m. on Aug. 2 was factored into an “Installed Capacity tag” (“ICAP tag”) used to assess future capacity charges for each electricity account.
Cities and towns with pass-through capacity charges can make a significant dent in their energy costs by reducing electricity use during the hour when the ICAP tag is determined. (MunEnergy customers that have chosen an all-in price will not be affected.)
The peak for the New England power grid typically occurs during a weekday afternoon in the midst of a heat wave when air conditioning usage is at its highest. By reducing electricity usage during this time, municipalities can lower their charges for the next power year.
Cities and towns can save on electricity costs by having a plan in place to scale back energy use during peak days. Closing a municipal building for an afternoon on the hottest days of the summer will result in electricity savings the following year. For buildings that cannot be closed, the New England Independent System Operator (ISO-NE) recommends raising air conditioning settings a few degrees, consistent with health and safety.
Constellation NewEnergy, the endorsed supplier for the MMA’s MunEnergy program, offers a load response program for municipalities that would like more immediate benefits for scaling back. Customers that enroll in this program earn payments year-round by scaling back electricity usage during grid emergencies. To learn more, contact MunEnergy program manager Emily Neill at (617) 772-7513, or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Written by MunEnergy Program Manager Emily Neill
