How your Texas business uses electricity this summer will impact your bill for the next year. Sounds dramatic. But it’s true.
If you have a demand meter, your peak demand charges for the next calendar year will be established during the grid’s highest demand days in a 4 month period.
In Texas, this is referred to as 4CP or 4 coincident peaks.
What is a Coincident Peak?
A coincident peak (CP) demand interval is the 15-minute time period when power requirements hit their highest level during a particular month.
The Electricity Reliability Council of Texas (ERCOT) establishes 4 coincident peak (4CP) demand intervals, one for each summer month June – September.
Your transmission and distribution service provider (TDSP) then uses your kW demand during this period to set your peak demand charges for the following year.
If you know when a CP will occur, you can curtail your demand and save on your electricity bills.
Here’s the catch. No one knows in advance when the 4CP intervals will occur.
Predictions of Coincident Peak Days
While no one knows when we’ll have a 4CP interval, there are plenty of resources that predict high demand days.
- Ask your electricity provider if they have a 4CP forecast email or alert system for high electricity demand days.
- Subscribe to ERCOT demand alerts
- Follow ERCOT on social media, including Twitter, Facebook or LinkedIn
4CP intervals typically occur on weekdays between 3pm and 6pm. Lowering usage in the afternoon on predicted high demand days may help lower your peak demand.
Here are the 2023 4CP dates, intervals and peak load.
| Date | Interval | Load (MW) |
|---|---|---|
| June 27 | 5pm | 80,827 |
| July 31 | 4pm | 83,046 |
| August 10 | 5pm | 85,434 |
| September 8 | 4pm | 84,182 |
How to Decrease Demand on 4CP Days
There are some actions you can take when ERCOT projects high demand:
- Pre-cool your building in the early afternoon; then adjust the thermostat up 4-5 degrees during the peak demand period
- Turn off unnecessary lights and office equipment (printer, copier, coffee machine, televisions)
- Turn off pumps, air compressors or other high-demand equipment, if possible
- If you use heavy duty electrical equipment in your business, avoid shift changes or simultaneous equipment start-up during peak demand hours.
- Consider getting an HVAC tune-up or upgrading your HVAC systems to ensure energy efficiency.
You can also use data from your smart meter to understand your power usage.
Create an account with SmartMeterTexas and download last year’s usage in 15-minute intervals. Focus on your power usage in June to September, especially usage from 3-7pm. Then get your employees involved in energy savings at your business.
Any actions you take to reduce power use during the 2024 coincident peaks will help lower your bill for 2025.
You can find out more about demand charges in our article on that topic.
