Critical Action Reduces Manufacturer’s Electric Bill by $200,000

When large energy users are able to take action at a critical moment, it can translate into hundreds of thousands of dollars. One Concord Energy Services manufacturing client on the east coast experienced this firsthand, achieving $221,740 in annual electricity savings as the result of a proactive energy management plan.

PJM Interconnection, a regional transmission organization covering 13 states and the District of Columbia, charges capacity and transmission fees every month in addition to their usage fees. The Capacity Tag and Transmission Tag amount is determined by the energy use a business logs during a small number of peak demand hours each year.

At the center of a proactive energy management approach is a willingness to look beyond traditional strategies. Grid operators and energy advisors issue Peak Alerts when electricity demand is expected to reach critical levels, giving businesses a narrow window to act. If they can temporarily reduce their electricity load during these periods, businesses can lower both capacity and transmission-related charges while also supporting grid reliability.

Concord Energy Services’ manufacturing client responded strategically to a handful of PJM Peak Alert notifications. These efforts reduced their electricity Capacity Tag by 81% and their Transmission Tag by 64%, resulting in approximately $18,478 in savings per month, for a total of $221,740 in savings annually for the following year.

Concord Energy Services (CES), a division of Concord Engineering, is an independent, full-service energy asset management firm providing a wide range of services, including energy advisory and commodity consulting, utility bill auditing, tariff analysis, procurement strategy, distributed generation guidance, and peak demand reduction consulting.

This breadth of expertise enables Concord to take a holistic view of energy cost reduction. Rather than relying solely on supplier contracts, the team evaluates all available options with their client’s best interest in mind, from procurement strategies and demand-side management to operational adjustments during peak events. In many cases, achieving meaningful savings requires creativity, coordination, and a deep understanding of how energy markets function.

With capacity costs continuing to rise across PJM, businesses with demand above 500 kW face increasing financial exposure. A proactive Peak Demand Management strategy and the ability to respond decisively when it matters most can help businesses turn a handful of hours each year into substantial, recurring savings.

If your business has a demand above 500 kW, let's discuss whether a Peak Demand Management strategy could reduce your electricity costs.