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Capacity Charges

Five hours set a year of capacity charges.
We help you get ahead of them.

In PJM, part of a demand-metered bill is set by your load during the grid's five busiest summer hours. In New England, it's the single busiest hour of the year. We find out what yours costs, alert your team ahead of likely peak hours, and help you plan what to turn down.

How It Works

Your capacity charge isn't based on your average use.

It's based on your load during a handful of peak hours on the whole grid. That number, called your capacity tag, is multiplied by the capacity price and billed for the next 12 months.

Once those hours pass, the number is locked. There's no fixing it afterward, which is why knowing when they're coming matters so much.

5CP: Five Coincident Peaks

Your Peak Load Contribution (PLC) tag is based on your average load during the five highest-load hours on the PJM grid between June 1 and September 30.

$325.00/MW-day 2028/29 capacity price (July 2026 auction, at the price cap)

1CP: One Coincident Peak

Your capacity tag in New England is based on your load during the single highest-demand hour of the year on the ISO-NE system.

$3.580/kW-month clearing price in the most recent forward auction (FCA 18, for 2027/28)
What We Do

Three ways we help lower your capacity charge.

01

Know your number

We find your current capacity tag and show what it costs you at current prices, so you know what's actually at stake.

You see the dollar value of every kW you take off.
03

A plan for those hours

We help you decide what can come down and for how long, and how it fits with demand response if you're enrolled.

Cuts that don't disrupt what matters.
Why It Matters Now

The price behind your tag is more than 10 times what it was in 2024.

PJM's capacity price went from $28.92/MW-day for 2024/25 to $269.92 for 2025/26, then $329.17 and a record $333.44, and $325.00 for 2028/29, with every auction since the jump clearing at the price cap. At $325, each 1 MW of tag costs about $118,600 a year, so every 100 kW you take off is worth about $11,900. How to reduce your tag.

Load Factor Check

How evenly do you use power?

Load factor compares how much energy you use to how much you'd use running at your peak all month. A low load factor means short, sharp peaks, so demand and capacity charges make up more of your bill. Enter two numbers from your bill to see yours.

Load Factor

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Rough guide: —

Average Load

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kW, averaged across the month

Peak vs. Average

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How far your peak sits above your average

Load factor = monthly kWh ÷ (peak kW × 730 hours). As a rough guide, under 40% is peaky, 40% to 60% is moderate, and over 60% is steady. Your actual charges depend on your utility's tariff; a free savings check prices them for your account.

Know what your tag costs
before next summer.

We'll find your current capacity tag, show what it costs at today's prices, and what a plan could take off. Free, no obligation.

Rather talk? Call Jordan at 610-904-9403