Tips to Manage Your Capacity and Increasing Costs


Capacity - Photo by Thomas Kelley on Unsplash

Now that you have an understanding of capacity as it relates to your electricity bill and want to find ways to reduce your capacity tags, here are some tips on how to manage increasing costs. You can download the checklist here: Capacity Reduction Checklist

1. Peak Demand Day Warnings

There are several peak demand days throughout the year, and warnings are given in advance so you can make sure to adapt your business electricity demand appropriately. The RTO needs to supply the energy grid and without any issues of blackouts or shutdowns, and often will require the help of local businesses to reduce their electricity during those days.

Sign up for warnings on peak demand days so you can adjust your business appropriately.

2. Stop Putting off that Efficiency Project

An efficiency project like an LED Lighting upgrade or HVAC Upgrade can significantly reduce your energy consumption–by 50% or more in some cases. Benefits of an efficiency project include lower monthly electric bills, reduced maintenance, and your business may also be rewarded for completing a project through rebates or incentives. So, stop putting of that efficiency project, and start taking advantage of lower electricity bills.

3. Refine your daily energy habits

Depending on the specific needs of your business, think about all the energy you actually use on a given day and brainstorm ways to reduce. Here are some general tips:

  • In the winter, lower your thermostat to 68°F when you’re in the office, and 55°F at night or while you’re away

  • In the summer, raise your thermostat to 78°F when you’re in the office, and 85°F while you’re away

  • Set your lights on sensors to turn off when no one is in the room (this is especially important for large warehouses and conference rooms)

  • Try running major machines overnight instead of during peak demand hours.

There are a number of efficiency tips you can take advantage of to hack your energy bill.

4. Sign up for Demand Response

Demand Response is a program that provides an opportunity for large consumers to reduce or shift their electricity use during peak demand hours. If you’re in a Demand Response program, you may be called upon by the utility to reduce your electric demand which means shutting down a certain percent of your business for a few hours during peak demand days. Businesses in these programs are compensated with large sums of cash for participating in these programs.

Final Thoughts

If history shows us anything, it’s that an increase in capacity is an uphill battle. Zona advises, “In the modern era of power generation, spikes in capacity have been followed by more increases the following year.”

Businesses not in the market for a new contract today should take a serious look at Demand Response and PLC Management programs so they don’t get stuck footing the bill for capacity futures.

To make sure you're accomplishing your long term capacity goals - Click Here to download the Capacity Reduction Checklist.

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