Constellation, a business unit of Exelon, today announced the launch of Constellation Peak Response, a program which allows Constellation commercial and industrial (C&I) electricity supply customers to reduce future capacity and transmission costs by lowering electricity consumption during the hours of peak demand.
Capacity and transmission charges vary by region and typically account for 20 percent to 30 percent of a C&I customer’s overall electricity bill. Capacity charges ensure that there is an adequate excess supply of electricity to meet the highest levels of grid demand, while transmission charges cover the cost of transmitting energy over the grid from a generating facility to local utility distribution facilities. In most regions, these charges are based on several hours each year when the grid is at its highest level of demand.
Constellation Peak Response leverages the company’s wholesale market expertise to predict the peak grid hours and sends day-ahead and day-of notifications, alerting customers to reduce electricity consumption. The benefit to customers is realized the following year when the regional grid operators and local utilities determine the customer’s share of capacity and transmission charges based on electricity consumed during peak grid hours.
Participation in the Constellation Peak Response program is voluntary and, unlike traditional load response programs, there is no penalty for failure to comply when a load response event occurs, providing a low -risk opportunity for customers to save on their overall electricity costs.“We are continually looking for new ways to provide a more comprehensive energy portfolio management strategy for our customers,” said Gary Fromer, senior vice president, energy management programs, for Constellation. “With Constellation Peak Response, customers now have the opportunity to take advantage of a voluntary, flexible load response program that targets what matters most: their utility bills.” Constellation Peak Response offers customers two payment options -- saving on their Constellation monthly bill or receiving a quarterly check -- during the year following their participation in the program. Since the program’s pilot began in April 2011, more than 100 customers have enrolled a total of 400 megawatts into the program. In 2012, these pilot customers received more than $500,000 in Peak Response payments and savings as a result of their lower electricity consumption during Constellation Peak Response alert hours.