As the temperature rises in summer, it's time to talk about load management — controlling peak electrical demand through either switching loads off or using on-site generation.
Making Jackson EMC's Load Management Rate Work for You
Jackson EMC is billed each month for peak electrical demand based on the average of the five highest hourly electrical demands set during the previous summer. By reducing our peak demand during these hours, we save money through load management. As a cooperative, if we save, you save. To help meet our load management requirements we offer load management rates for commercial and industrial customers. Customers can reduce their electricity costs by actively controlling their peak demand during load management periods. However, like many things in life, there is a risk involved. If a load management customer does not reduce load during load management hours, they pay more.
Let's examine the specifics of the Load Management rate.
The Load Management Service (LMS) rate consists of four pieces: the service charge, energy charge, coincident billing demand, and non-coincident billing demand. Unlike the General Service (GS) rate, the LMS rate charges for energy and demand separately. The energy charge is a flat rate, and the demand charge is determined by both the coincident and non-coincident demands. Because of the way we are billed for transmission, we can pass on savings by charging a lesser amount for non-coincident demand during off-peak periods and encouraging load management customers to avoid setting large coincident peaks during load management hours, which are charged at a premium. Combined with a low energy charge, the LMS rate can yield a lower average cost of electricity for large consumers who actively manage their demand during load management hours.
During periods of extreme temperatures, as our system peak demand increases, we notify our customers that we are going to operate load management. Because we don't know in advance when our peak demands will occur, we may call for load management as often as 20 days during a typical summer, typically between 3:00 and 8:00 pm. Load Management members are typically notified of the load management hours early that morning. At the end of the year, we determine our five highest hours of demand and calculate the customers' average demand that coincides with our top five hours. If you are served by the load management rate, the demand you set this year saves you money for the entire coming year. Load management by the customer is optional during notification periods, but it will affect the coincident peak which determines a portion of the cost of your electricity.
To summarize, customers who can shed load during peak summer afternoons are good candidates for the Load Management rate. Additionally, we offer a School Load Management (SLMS) rate for school systems looking to save money by being energy conscious. If you would like to know how load management might affect your bottom line, contact your Jackson EMC C&I representative for a customized load management analysis. For more details on the Load Management Service rate, see the LMS rate tariff.