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Constellation claims untraditional peak response program

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Exelon subsidiary and competitive electricity supplier Constellation has launched its peak response program for commercial and industrial (C&I) customers in the PJM, New England, New York and ERCOT regions to reduce future capacity and transmission costs by lowering electricity consumption during the times of peak demand.

These charges can account for 20 to 30 percent of a C&I customer's overall electricity bill. The peak response program allows Constellation to predict the peak grid hours and send day-ahead and day-of notifications to customers alerting them to reduce electricity consumption.

The benefit to customers is realized the following year when the regional grid operators and local utilities determine the customer's share of capacity and transmission charges based on electricity consumed during peak grid hours.

According to Constellation, what sets its program apart from others in the industry is that it provides a low-risk opportunity for customers to save on their overall electricity costs, as there is no penalty for failure to comply with a load response event.

"We are continually looking for new ways to provide a more comprehensive energy portfolio management strategy for our customers," said Gary Fromer, senior vice president, energy management programs, Constellation. "Customers now have the opportunity to take advantage of a voluntary, flexible load response program that targets what matters most: their utility bills."

In 2012, load response pilot customers received more than $500,000 in peak response payments and savings. 

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