What is Peak Demand?

When usage on the grid is highest.
Peak demand occurs when the electricity grid’s load is at its highest, traditionally during heat waves and cold snaps. Although these extreme weather periods are short-lived, during these times prices are often highest and can make up a significant portion of a commercial and industrial customers’ total electricity bill. Fortunately, this cost can be managed.

When do I receive a notification?

Before a peak demand event occurs.
Our experts analyze grid and weather information in order to predict the specific days and hours when demand will be much higher than normal. With this information, our clients are sent a day-ahead notification before a potential event occurs, as well as a confirmation notification the day of an event allowing recipients the opportunity to participate in curtailing their usage during peak demand events.

How do I curtail my energy?

By using less energy.
Peak Demand Notifications will give you a specific timeframe during the day when the load on the grid is expected to be highest. If you are able to, you should plan to reduce your electricity usage on this day, particularly around the suggested timeframe. You can curtail your energy usage by adjusting the temperature on your thermostat, turning off any machinery that you can, unplugging or turning off electronics that are not being used, and reducing lighting where possible. These are just a few examples of how to curtail your usage. More tips and suggestions can be found in your peak demand notification email.

Take advantage of these notifications with a procurement strategy.

Our notification has been designed to enhance the variety of procurement strategies offered by Mantis Innovation, but is also offered as a standalone solution for any energy consumer. Our approach seeks to reduce or counteract the probability of exposure to high electricity costs due to commodity price fluctuations, while striving to secure the lowest cost of the commodity over time. It’s not about the lowest price today — It’s about the lowest price over time.

How will receiving Peak Demand Notifications save me money on my monthly electric bill?

Volumetric Reduction
By reducing energy during peak periods, you lower consumption. This will save you money on your monthly electric bill, especially if you’re on a time of-use rate. Most facilities are able to at least partially reduce usage without it affecting their day-to-day business.

Peak Shaving
Peak shaving is reducing your highest hours of energy consumption a month. Every energy bill has components that are on a $/kW-basis (as opposed to just volumetric $/kWh-basis.) By reducing your kW in the highest hours, you’ll reduce your electric bill.

Reduce T&D
Development of the transmission grid and maintanance of power lines contributes to the cost of electricity. The cost is a major component of your monthly electricity bill. By shaving the kW load during peak hours, T&D costs can be reduced.

Load Shaping
Load shaping can reduce bills by smoothing out the usage pattern of a client. Smoother loads in tighter bands will secure better pricing from suppliers because they are able to purchase less energy during the most expensive hours.

Capacity Avoidance
Reducing usage during peak events can also dramatically lower capacity costs. Capacity charges are insurance payments that keep electricity flowing over the grid during the most extreme periods. Installed capacity rates is determined during peak events, so by curtailing during these times you can significantly reduce your electricity bill in the following year.
 

* Potential future savings

**Depends on notification months

This add-on works well when capacity charges are a “pass through” item in your electricity contract, and could potentially be a significant cost saving opportunity.

Note: The information is being distributed solely for informational purposes, and as such, should be considered together with other sources of information before making any energy-related decisions. Mantis Innovation does not warrant or guarantee that any predictions made by this service, which are based on historical, meteorological, ISO/RTO output, and other factors will yield any bill credits, savings, installed capacity decreases or other specific results for the Client. Service notifications are prepared from sources that Mantis believes to be reliable, but the accuracy and completeness of such are not guaranteed and are subject to change without notice. Indication of any market prices are only indications of market values and are subject to change. You are cautioned not to put undue reliance on this or any single source of information, which is neither a prediction nor guarantee of future events or circumstances.