It’s not just temperatures rising in Texas, Electric Utility rates are rising just as fast. The Public Utility Commission of Texas (PUCT) has approved two separate petitions from Oncor and Centerpoint to increase the Transmission Cost Recovery Factor (the four coincident peaks calculation – 4CP). Approved on June (14th Oncor 16th Centerpoint), the ruling will mean that effective September 1 2021, rates will increase by 9.7% for Oncor and 16.5% for CentrePoint.
This is a significant increase to previous years’ increases, which are normally less than 5%. 4CP is a critical component of an annual electric bill. It is set based upon how much each customer contributed to the total peak load of the electric grid. The larger your load contribution to that peak, the greater the charge applied to your bill each month throughout the year.
Given 4CP rates are normally the second- or third-line item on your invoice, if you consume less power during these hours, you can significantly reduce your total electric bill for the coming year. What you do over the next 2-3 months will have a dramatic effect on your 2022 electricity invoices. A successful strategy is only as good as your ability to effectively execute.
Wayne Muncaster, VP for North America at GridBeyond, said:
“We predict this summer is going to be incredibly difficult for businesses all over the ERCOT region to manage their energy costs. The ongoing impact of the Covid-19 pandemic, combined with exposure for many to the $9,000MWh prices seen resulting from Storm Uri has and is continuing to put significant pressure on business bottom lines and significant increases in energy costs on the horizon will not be welcomed by industries already feeling the pinch. We are only half way through June, and already we have seen conservation warnings from ERCOT due to extremely tight reserve margins, multiple price intervals over $1,000/MWh and now hugely significant Transmission Charge increases from both Oncor and Centerpoint.
“The good news is that there is action that you can take, but you need to do it fast. The actions you take over the next few months will have a dramatic effect on your 2022 power costs. You may already being doing 4CP avoidance, but increasing volatility of energy markets is making it almost impossible to do well without the right technology.
“Our platform can predict energy prices with up to 48 hours advanced notice with 90%+ accuracy giving you the time needed to plan accordingly for price volatility, and our automation makes the critical difference between just attempting 4CP avoidance and doing it well.”
We will be examining the impact of this development along with changes to values that can be achieved under ERCOT programmes over the coming weeks. Let GridBeyond show you how AI-powered technology can help you successfully implement a strategy to minimize rates and maximize revenues.
Drawing upon Big Data and machine learning the GridBeyond’s solution uses AI to forecast prices on the ERCOT day-ahead markets down to a nodal level, optimizes opportunities against the RRS Market prices for each hour, predicts best price and enables compliant participation, as well as delivering 4CP cost avoidance in the Summer months.
As part of our service our system monitors/measures your own granular site level consumption and availability on a sub-second basis allowing you seamlessly execute a comprehensive energy strategy 24/7/365. Our platform can predict energy prices with up to 48 hours advanced notice with 90%+ accuracy giving you the time needed to plan accordingly.
From install to insights to intelligence – GridBeyond delivers a complete energy solution that enables customers to seamlessly manage, and effectively execute, a comprehensive energy strategy 24/7/365.