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Saturday, May 22, 2010

PJM Summer 2010 Supply Forecast

NEWS RELEASE
FOR IMMEDIATE RELEASE

DEMAND RESPONSE TO PLAY SIGNIFICANT ROLE IN MEETING PJM’S HIGHER SUMMER PEAK ELECTRICITY USE

Grid Operator Foresees Adequate Power Supplies for Summer

(Valley Forge, Pa. – May 5, 2010) – Consumers are being counted on to reduce this summer’s peak demand for electricity (the highest amount of electricity needed at one time) by six percent in the 13- state plus D.C. PJM Interconnection region.

PJM forecasts a peak demand of 135,750 megawatts (MW) of electricity this summer. (One megawatt is enough electricity to serve 800 to 1,000 homes.) PJM expects to have adequate resources to meet forecasted peak summer conditions.

“PJM and our members are ready to handle the expected summer conditions,” said Michael J. Kormos, PJM senior vice president – Operations. “However, until transmission additions can relieve congestion, we expect we will continue to reschedule generation to accommodate peak load conditions.”

PJM will have 162,903 MW of generation available. Consumers’ voluntary reductions in usage (known as demand response) are expected to reduce the peak electricity use by 8,525 MW – equivalent to 10 large power plants. Demand response in PJM has increased fivefold since 2006 when 1,677 MW of demand response were available.

The PJM region includes 51 million people and 20 percent of the U.S. economy. When adjusted for last summer’s relatively cool temperatures, the peak use of electricity is expected to grow 1.5 percent.

The demand forecast is based on normal weather conditions. If the summer ’s temperatures are unusually hot, use of air conditioners could drive demand for electricity to 144,612 MW.

Consumers participating in demand response or interruptible programs reduce or eliminate their use of electricity when called upon by the grid operator or electricity distributors such as utilities.

Peak electricity use in the PJM region is driven by high temperatures and economic conditions. PJM’s forecast looks at a range of possible conditions to allow for variation in weather conditions. The forecast is based on typical peak weather conditions experienced over the past 35 years. Actual electricity demand will vary as temperatures vary from normal.

PJM’s all-time record use of electricity of 144,644 MW occurred in 2006.

PJM Interconnection ensures the reliability of the high-voltage electric power system serving 51 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the region’s transmission grid, which includes 6,038 substations and 56,500 miles of transmission lines; administers a competitive wholesale electricity market; and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion. Visit PJM at www.pjm.com.

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Friday, May 21, 2010

Utility Load Response Programs = High Peak Demand Returns for Business Customers

Electricity generation and transmission systems may not always meet peak demand requirements— the greatest amount of electricity required by all utility customers within a given region. Peak electricity use is driven by high temperatures and economic conditions. Utility forecast looks at a range of possible conditions to allow for variation in weather conditions. The forecast is based on typical peak weather conditions experienced over the past 35 years. Actual electricity demand will vary as temperatures vary from normal. If summer temperatures are unusually hot, use of air conditioners could drive demand beyond utility forecasts and available supply. In such a case, utility companies will implement what is known as “rolling blackouts,” which are intentional blackouts implemented by the utility company meant to prevent a complete shutdown of the transmission network.


To prevent this disastrous scenario, most utility companies offer commercial and industrial customers significant financial incentives to reduce their power consumption during peak demand periods. By enrolling in “load response" program, customers are paid for reducing electricity usage during peak demand times when wholesale electricity prices are highest. The incentives earned from partaking in a load response program are in addition to the avoided energy cost participants see from reducing their energy usage in the first place. Simple steps such as dimming the lights, pre-cooling during off-peak hours, daylight harvesting, and shutting down unused office equipment (using kill switches) can translate into real financial returns.


Utility companies offer several types of programs. By enrolling in a voluntary program, the customer decides if, when, and how much to reduce energy usage without risking non-compliance penalties. Businesses that have a well defined load reduction plan and ability to carry out the plan can enter into binding load reduction agreements risking non-compliance penalties and fees, but higher fixed prices.


CIC Energy Construction can assist in the development of a comprehensive load reduction plan that will yield high peak demand returns. Please contact CIC Energy Construction at (312) 224-8254 begin_of_the_skype_highlighting              (312) 224-8254      end_of_the_skype_highlighting.

Sell Your Illinois SREC

Chicago-based CIC Energy Construction & Supply announced that it will begin registering and trading Illinois generated SREC (Solar Renewable Energy Credits) in utility compliance markets outside Illinois in the near future. SREC is separate from the value of the electricity itself and permits the owner or purchaser to claim the benefits of the clean energy production by effectively subsidizing the cost of the installed system. The additional income received from selling is expected to significantly increase the economic value of solar energy investments in Illinois.

Contact CIC Energy Construction for additional information at 312-224-8254.

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