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The Best Energy Management Strategy for 2019

By Direct Energy Business

We asked Direct Energy Business President John Schultz: What are the best energy management strategies for 2019? Not surprisingly, peak load management was at the top of his list.

 

What is Peak Load Management?

Consider the current trend of rising transmission, distribution, and reliability costs, which is counterbalancing the recent drop in wholesale energy prices. (For a quick refresher on this topic, check out our previous post.) Mandatory fees are making up a larger and larger portion of most energy bills – according to Schultz, up to 50 to 60 percent. But what determines the amount of your mandatory fees?

As Schultz says, those charges are heavily influenced by the amount of energy you consume during just a handful of hours on a handful of days each year. Regional transmission operators (RTO) or independent system operators (ISO) measures how much energy individual facilities consume during high capacity days on the grid, what’s called the “coincident peak.” The amount you pay for transmission, distribution, capacity or reliability during the following year are often based on how much you used during that very specific window this year. 

It stands to reason, then, that managing and lowering your electricity consumption during those times could make a big difference in how much you pay.

How to get it done

Schultz believes that Direct Energy Business is leading the way in peak load management. A combination of transparent, easy-to-understand billing, hands-on account management, and proprietary software makes for a best-in-class solution when it comes to cutting down on transmission and distribution charges. Customers can go online to plan, test what-if scenarios, and even receive alerts for likely peak days. Our approach is to put the power in the hands of the customer, and by doing so, make it easy to save.

Explore other installments of the series from John Schultz below, or watch the complete interview now.

Posted: January 28, 2019

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