Helping Ohio Energy Users Plan for Higher Capacity Costs
Capacity costs are the fees the wholesale electric market that serves Ohio (PJM Interconnection) charges to provide sufficient electric generation to meet energy users’ needs during peak periods.
Transmission costs are the fees PJM charges to transport electricity across long distances at high voltages.
Capacity and transmission costs in Ohio have increased significantly because of material changes to PJM’s capacity market, coal plant closures, and the need to import power from outside of the region. Capacity and transmission costs are two of the three largest components in the electric bills of many Ohio electricity customers.
Brakey Energy helps large commercial and industrial energy users in Ohio plan for and mitigate the impact of capacity and transmission costs. We can show you how your business is affected and how to reduce the impact on your bottom line.
Brakey Energy has prepared a comprehensive report that explains what capacity is, how the capacity market works, how capacity costs impact FirstEnergy-Ohio customers’ electric bills, and what steps you can take to mitigate the impact of these escalating costs. While the paper focused on a price spike that ended in May 2016, the concepts discussed remain relevant today. Read it here.
Transmission Pilot Programs
Both FirstEnergy-Ohio and AEP-Ohio have created transmission pilot programs that allow qualifying customers to pay for transmission using an alternative rate methodology. Brakey Energy can help you determine if you qualify, if you would save money under the pilot programs, and help you enroll.