Several weeks ago, we posted an article describing how the PJM Capacity Markets affects your overall retail energy price. This is a follow up to that article.

In general, capacity costs make up approximately a quarter of a customer’s total energy spend, which is the second highest contribution after the underlying wholesale energy portion of your electric bill. Unfortunately, consumers are price takers when it comes to capacity prices, meaning they can’t participate in the auctions that set the price for capacity.

Businesses can make an immediate impact by better managing their energy costs. Demand, in terms of electricity, is the instantaneous consumption of electricity. Your usage is the sum of demands over a period of time. Demand management is the act of controlling, through various means, how and when you use your electricity.