Electrical peak load management is a reduction of electrical energy demand in a facility during the electrical utility’s highest generation period.  Electrical peak load management strategies may be implemented independently or in association with the electrical utility company.

There are two major components in a facility’s electrical consumption bill.   They are usually termed as the “demand charge” and the “energy consumption charge”.  The demand charges are reset on a monthly basis and are calculated on the highest rate at which electricity is consumed during the periods that are peak utility service hours. Demand charges are measured in kilowatts (kW) and the highest consumption rate (kW-h) is measured in 15- or 30-minute intervals during peak hours.  Demand charges are a large portion of a facility’s monthly electric bill.  Peak load management can result in significant cost savings, especially for commercial, industrial and institutional clients.

Peak load management can be accomplished by several different methods.  Some of the following actions are used once officially notified that electrical load reduction is needed:

• Turning off all non-vital or unused equipment, i.e., radios, printers, copiers, coffee makers, computers, monitors and associated peripheral equipment.
• Turning off the lighting in unoccupied rooms/areas or reducing the light levels in occupied areas were possible.
• Reducing the facility’s physical plant mechanical loads (pumps, motors, etc.) without compromising personal health or safety.
• Using a backup generator to partially or fully operate building electrical loads.

By using any one or all of these methods can significantly reduce electrical power consumption and the associated costs during peak demand periods.

The following is an article on how residential customers can help reduce peak loads by having Xcel Energy remotely control their air conditioning compressor units on central air conditioning systems:

Xcel Energy customers can help reduce peak electricity demand by enrolling in the Saver’s Switch program. The program allows Xcel Energy, by remote control, to cycle central air-conditioning compressor units on and off for brief intervals during peak energy usage days. Nearly 88,000 Xcel Energy residential customers in Colorado participate in the program.

Customers enrolled in the Saver’s Switch program receive an annual $25 discount on their electricity bills while helping Xcel Energy avoid purchasing high-priced electricity during peak-use periods.  All together, the program could reduce electricity demand by nearly 97 megawatts, about as much as it would take to power about 75,000 homes. Saver’s Switch has been available to Colorado customers with central air conditioning since 1999.

"Not only does it allow us to avoid purchasing high priced electricity at times of peak demand, but Saver’s Switch helps us reduce stress on our distribution system, which can cause power outages when overloaded," said Patrik Ronnings, product portfolio manager for Xcel Energy. "Activation of the Saver’s Switch generally occurs on very hot summer days when demand for electricity reaches high-levels.

Please visit Xcel Energy’s website for more information at www.xcelenergy.com.