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Increases in PJM’s Transmission Costs and Your Energy Bill

power lines
Posted September 5, 2014 | By Direct Energy Business

This post was written by Marjorie Philips and David Scarpignato of the Direct Energy Government & Regulatory Affairs team.

Recently, it has been noted that PJM’s transmission costs have gone up exponentially. Some resources have implied this is due to generation retirements, such as coal plant retirement, when actually, there are a number of causes of increased transmission costs, particularly over the last few years due to the need to upgrade aging infrastructure.

A major component of these transmission costs are known as Network Integration Transmission Service rates or NITs.


Defining important, frequently misunderstood energy terms: Part 2

business meeting
Posted May 8, 2014 | By Chris Dubay

On an MBR, do HDDs signal the chance for DR, and will my REC purchase affect my UCAP requirement? You’re probably asking yourself, “What are you talking about?” In today’s article, we continue a previous discussion and present our second lesson in learning EIL (Electric Industry Language) by defining a few more terms that are commonly used, but sometimes misunderstood.

HDD/CDD = Heating Degree Day/Cooling Degree Day
HDD is a measurement designed to reflect the demand for energy needed to heat a building or facility. The heating requirements for a given structure at a specific location are considered to be directly proportional to the number of HDDs at that location. A similar measurement, CDD, reflects the amount of energy used to cool a building.


Defining Important Frequently Misunderstood Energy Terms: Part 1

open dictionary
Posted December 23, 2013 | By Chris Dubay

Buying electricity is complex enough without having to learn a new language. Unfortunately, industry terms and TLAs (three-lettered acronyms) are part of almost every conversation. I thought I would take a crack at explaining a few that are important and frequently misunderstood.


How to Manage Your Capacity Costs in PJM

electricity meter
Posted September 27, 2013 | By Randy Burns

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.


Summer Energy Outlook

summer energy outlook

Be ready for warmer weather. See what weather is trending for summer months and find out how this might impact energy prices

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