Understanding the Electric Grid

What is Peak Management?

Electric cooperative members across the state have already saved more than $100 million by allowing their generation supplier, Buckeye Power, to control their use of electricity at certain times through Peak Management. It’s simple. Electricity costs the most when it’s most needed – that’s less than one percent of the hours each year, typically occurring at the busiest times in the mornings and evenings on a few really hot and humid summer days (between 4 and 10 p.m.) and a few really cold and windy winter days (between 6 and 10 a.m. and 5 and 9 p.m.). That’s when our power plants have to work their hardest. The maximum or “peak” amount of power used determines Pioneer's future costs for power. When the peak goes up, so do the costs. By reducing the demand for electricity created by electric water heaters, home-heating systems, and central air-conditioning systems in the homes of members who volunteer to help, your cooperative reduces its costs for power. So, when you volunteer to participate in a Peak Management program, you’re joining thousands of other electric cooperative members across Ohio who are helping their cooperative control its use of electricity at critical times. And you’re saving money for yourself and your neighbors.  

Understanding the Electric Grid

Currently, summer peaks are our biggest concern, although this can change over time. With Buckeye Power becoming a member of the PJM Regional Transmission Organization (RTO), hot days in Ohio don’t always correspond with the need to use peak management. Because Buckeye Power is part of PJM, costs no longer are necessarily tied to the peak use periods of Ohio’s cooperatives. Now, costs are allocated in two ways: The first is based on the five days during the summer when the entire PJM system load is highest; and the second is determined during the single hour of the year when the transmission utilities serving Buckeye’s members experience their peak demand. This simply means while it may be cool and mild in Ohio, if the east coast is experiencing high temperatures and humidity, it may be necessary to control. Click to learn more about our Water Heater and Cool Returns peak management programs.

Learn more about Peak Management and the PJM transmission grid by clicking on the above PDF documents.