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Capacity & Peak Intelligence

Strategic Peak Management:
Lowering Your Capacity Tag

Most brokers walk away once the contract is signed. At The Energy Exchange Market, that's when our real work begins. We don't just manage your rate — we manage your score. And your score is set during five hours each summer.

The Hidden Cost

Up to 40% of your energy bill is determined by a handful of critical hours.

In PJM and ISO-NE, the bulk of your "non-bypassable" capacity charges are not determined by your average usage — they are determined by your demand during specific peak hours each year. Once those hours pass, your obligation is locked in for the next 12 months. There is no retroactive fix.

If your broker isn't monitoring these windows and alerting your team in advance, you are paying the maximum possible capacity cost year after year. Most brokers are not monitoring them. We are.

5CP — Five Coincident Peaks

Your Peak Load Contribution (PLC) tag in PJM is set by your electricity demand during the five highest-load hours across the entire PJM grid, occurring between June and September each year.

20–35% of your total supply cost is driven by your PLC tag in high-capacity-price years

1CP — Single Coincident Peak

Your Installed Capacity (ICAP) tag in ISO-NE is set by the single highest hour of grid stress for the entire year. One hour. Locked in. Twelve months of charges follow.

$3.72/kW-mo current FCM capacity price — multiplied by your ICAP obligation for 12 months
Our Mitigation Strategy

Three-tiered active capacity reduction.

We combine real-time alerting, demand response integration, and post-peak reporting into a complete capacity cost suppression system.

01

Real-Time Peak Notification

We monitor grid conditions 24/7. When PJM or ISO-NE demand forecasts approach historical peak thresholds, we send your facilities team direct action alerts via SMS and email — providing 4 to 24 hours of lead time.

  • Automated grid stress monitoring
  • Direct SMS to on-site facility managers
  • Customizable alert thresholds per facility
  • No infrastructure required on your end
Benefit: Shift production, stagger equipment starts, or engage on-site generation before the peak hour occurs.
03

Post-Peak Projected Tag Report

We don't wait for the utility to notify you of your new capacity tag months after the fact. We track your interval data against actual grid peaks to deliver a Projected Capacity Report — months before the new rates take effect on June 1st.

  • Interval data analysis against confirmed peak hours
  • Projected PLC/ICAP tag for upcoming compliance year
  • CFO-ready budget impact report
  • Comparison of tag vs. prior year with dollar impact
Benefit: Your CFO can accurately budget for the June 1st capacity reset before the number is official.
Why It Matters Now

The 2025/26 BRA cleared at $269.92/MW-day.
That changed everything.

The June 2024 PJM Base Residual Auction cleared capacity at $269.92/MW-day — up from $34.13/MW-day the prior year. For a 1 MW commercial account, this represents an additional $85,000+ in annual non-bypassable capacity charges starting June 2025. Every percentage point reduction in your PLC tag directly reduces this exposure.

The Typical Broker
The Energy Exchange Market
Peak Hour Monitoring
Not offered
24/7 automated grid monitoring with direct SMS alerts
5CP / 1CP Strategy
No curtailment planning
Custom curtailment SOPs tailored to your operations
Post-Peak Reporting
Client waits for utility notification
Projected tag report delivered months before compliance year
DR Coordination
Separate, siloed service
Synchronized with 5CP curtailment for the "Double-Dip"
BRA Impact Analysis
Generic market email
Account-specific capacity exposure quantified in dollars

Ready to lower your 2026 Capacity Tag?
Don't let five hours write your budget.

We quantify your current PLC/ICAP exposure, model curtailment scenarios, and build a custom peak management plan for your facility — at no cost to you.