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Peak Demand Information

Lavallette Electric Utility Customers

 

Lavallette Peak Demand Information

Today's forecast calls for a Peak Demand Day!
A significant component of the electric bill that you pay is for capacity or peak demand. These charges are regulated and set annually by the Regional Grid Operator, PJM Interconnection (PJM). PJM manages the grid in Pennsylvania, New Jersey, Maryland, and in all or parts of 10 other states. PJM sets our annual capacity charges based on consumption on the highest peak demand days in the summer between the hours of 3 p.m. and 7 p.m. Monday through Friday.

Our capacity charges are currently $676,000 annually, and they are based on the electric consumption for the entire Borough on those peak days. Reducing your use of electricity just on these days will reduce costs for the Borough and reduce stress on the regional grid.

As a ratepayer of Lavallette Electric, how can you help?
Today is the first peak day of the year, and this message will serve as a request to limit consumption as outlined below. Subsequent notices throughout the summer will be posted on the Borough's website on forecasted peak days. We ask that you do what you can to reduce your electric use on these peak days from 3p.m. – 7 p.m. by turning off fixtures and appliances, scheduling EV charging after 11p.m., and setting the temperature of your air conditioning unit a few degrees higher. By doing so, you will help the utility reduce our energy costs and give us the ability to pass those savings on to our customers.

Strategies to Curtail Your Electric Consumption
1. Turn off any unnecessary lights and electronics. Unplug any charging units.
2. Postponing the use of major appliances such as your electric clothes dryer or dishwasher until after 7 p.m.
3. Turn your electric hot water heater to vacation setting.
4. Reduce your use of Air Conditioning. Two options:
    1. Temporarily raise your air conditioning unit to 77 degrees. This can be programmed into your thermostat.
    2. If your building/home is less efficient and if you are able, an alternate and preferred strategy for air conditioning is to decrease the temperature at noon by
    3 degrees to pre-cool the building, then increase the temperature by 3 degrees per hour at 3 p.m., 4 p.m., and 5 p.m.
    4. Consider turning down your air conditioner and going to the movies, mall, library, or other public building.

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The Lavallette Electric Utility needs your help and cooperation. Each year the Borough purchases its energy requirements from the open market.

 

A significant component of the electric rates charged is called capacity. These charges are regulated and set annually by the Regional System Operator known as PJM Interconnection (PJM). Capacity charges are based on the peak demand or use of all of the Lavallette electric customers combined. PJM sets the annual capacity charges based upon the average demand of the five highest peak demand days incurred by the system multiplied by the rate set by PJM. The peak days occur during the summer months, typically in late June, July or August. The Borough pays those capacity charges twelve months a year based upon the average of those highest five days. Reducing the peak energy demand on each of those five days would significantly reduce the Borough annual capacity charges.

 

As a rate payer of Lavallette Electric how can you help? The daily peak demand occurs between the hours of 3:00 pm and 7:00 pm on those peak days; Monday through Friday only. When it is anticipated that one of those peak days is occurring, you will receive a voice message through the Borough’s automated notification system. We asked that when you do receive this message you do what you can to reduce your energy use during that period; such as turning off or unplugging all unused fixtures, electronics or appliances or setting the temperature of your air conditioning unit to a highest comfort level possible. By doing so, you will help the utility reduce our energy costs and give us the ability to pass those savings on to our customers.

 

Thank you for your cooperation as we work together for lower costs.