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Blog Industry insights Industry news Stay Ahead of Rising Capacity Costs with SmartestEnergy's Peak Alerts
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Stay Ahead of Rising Capacity Costs with SmartestEnergy's Peak Alerts

With summer underway and PJM Interconnection’s recent increase in capacity prices, managing energy usage during peak periods is more critical than ever. SmartestEnergy US’s Peak Alert Notification empowers businesses to take timely action—reducing or shifting demand during high-stress hours to help lower long-term electricity costs.

 

Industry insights Industry news
Jul 01, 2025
2 min
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Why the PJM Capacity Price Increase Matters  

the cost of ensuring sufficient electricity supply during periods of peak demand. They often represent a significant portion of your total energy costs, especially for commercial and industrial users.

What drives these charges? Your energy usage during peak hours as set by your ISO. That's where our Peak Alert Notification becomes a vital tool in your energy management strategy.

What Is the Peak Alert Notification?

SmartestEnergy’s Peak Alert Notification is a service designed to help businesses proactively reduce energy usage during forecasted peak demand periods. Alerts are issued when grid conditions indicate a potential peak hour—identified using hour-ending (HE) notation, such as HE 15 (2:00 p.m. to 3:00 p.m.). SmartestEnergy will send alerts when there is an 85% or greater probability that a peak hour will be set. These notifications will be issued up to 48 hours in advance, when possible, to give businesses ample time to prepare effectively. We issue peak alerts for PJM, ISO-NE, and NYISO, helping customers across these regions take action. By reducing electricity usage during these periods, customers can impact future capacity and transmission charges.

Demand Response + Peak Alerts = Cost Control

Demand response (DR) is a long-term strategy that offers potential cost savings by reducing electricity usage during high-demand periods. Unlike traditional models that provide a constant supply of energy, demand response creates a more flexible relationship between energy providers and consumers. It is a key part of smart grid technology, which aims to make the electricity grid more efficient, reliable, and sustainable.

SmartestEnergy’s Peak Alert Notification complements DR by providing insight into potential peak events empowering you to act when it matters most. Together, these tools help align your operations with grid conditions, supporting:

  • Lower Capacity Charges: Reduce costs tied to system peaks.
  • Improved Grid Reliability: Lessen strain on the grid during critical times.
  • Sustainability Goals: Decrease reliance on carbon-intensive peak generation.

Who Should Pay Attention?

If your business has interval meters with Advanced Metering Infrastructure (AMI), you're well positioned to act on peak alerts. Acting on these alerts helps you maximize benefits by aligning usage with grid conditions during critical periods.