ASHRAE Journal - April 2015 - 66

$/kW
25
20
15
10
5
0

Jan

Feb

Mar

Apr

May

Jun
2014

PSE&G Annual Demand
PJM Capacity Demand

Jul

Aug

Sep

Oct

Nov

Dec

PSE&G Summer Demand
PJM Network Transmission Demand

FIGURE 2 Cost of cooling per kW in New Jersey's PSE&G utility. Sources: PJM, PSE&G; General Power & Lighting Rate. Note:
C&I customers continue to pay for cooling during winter due to PJM's grid demand charges, which are 100% ratcheted.

describe the coordinators of the
bulk grid, the non-profit entities
that manage the dispatch of wholesale electricity in their respective
footprints.
ISO/RTOs' role in demand
charges are poorly understood, in
large part because few consumers know of their existence, and
because their demand charges are
often collected indirectly, through
a retail electricity provider, and
thus often buried in C&I bills.
There are nine ISO/RTOs across
North America, including ISOs
in the three largest U.S. states,
California, Texas, and New York,
and regional grid operators across
the country as seen in Figure 2. The
largest bulk grid in terms of MW
managed is PJM Interconnection,
which covers the mid-Atlantic, DC
Metro area, Virginia, Ohio, and
Chicago.
One of the most important functions of the ISOs/RTOs is to ensure
that its territory has adequate generation to meet its worst-case contingency - the grid's equivalent to a
design day. Each ISO or RTO meets
this function differently, but many do
so by procuring so-called "capacity"
www.info.hotims.com/54427-35
66

ASHRAE JOURNAL

ashrae.org

APRI L 2015

through an auction process for generators. Once the generators' proceeds
are determined, the costs for capacity
are levied on consumers.
Most ISO/RTOs charge end-users
for their share of capacity costs
through a peak load contribution
(PLC), also referred to as a customer's ICAP, capacity tag, or "captag"
for short. A customer's PLC is not
based on its own peak kW draw;
rather, it is based on the customer's
kW consumption during the grid's
peak kW draw. In PJM, for example,
each customer's PLC is based on the
average of the customer's load during the grid operator's five highest
hours of grid demand during the
year. These hours are known as the
five coincident peaks (5CPs), and it
should be noted that no more than
one of the 5CPs can be assessed
on any single day. In contrast,
NYISO determines each customer's
captag based on the customer's
consumption during the New York
State grid's single highest hour of
demand each year. In both PJM and
NYISO, the peak hours of demand
fall almost exclusively on the hottest weekday afternoons of the
summer.



ASHRAE Journal - April 2015

Table of Contents for the Digital Edition of ASHRAE Journal - April 2015

Contents
ASHRAE Journal - April 2015 - Cover1
ASHRAE Journal - April 2015 - Cover2
ASHRAE Journal - April 2015 - 1
ASHRAE Journal - April 2015 - 2
ASHRAE Journal - April 2015 - Contents
ASHRAE Journal - April 2015 - 4
ASHRAE Journal - April 2015 - 5
ASHRAE Journal - April 2015 - 6
ASHRAE Journal - April 2015 - 7
ASHRAE Journal - April 2015 - 8
ASHRAE Journal - April 2015 - 9
ASHRAE Journal - April 2015 - 10
ASHRAE Journal - April 2015 - 11
ASHRAE Journal - April 2015 - 12
ASHRAE Journal - April 2015 - 13
ASHRAE Journal - April 2015 - 14
ASHRAE Journal - April 2015 - 15
ASHRAE Journal - April 2015 - 16
ASHRAE Journal - April 2015 - 17
ASHRAE Journal - April 2015 - 18
ASHRAE Journal - April 2015 - 19
ASHRAE Journal - April 2015 - 20
ASHRAE Journal - April 2015 - 21
ASHRAE Journal - April 2015 - 22
ASHRAE Journal - April 2015 - 23
ASHRAE Journal - April 2015 - 24
ASHRAE Journal - April 2015 - 25
ASHRAE Journal - April 2015 - 26
ASHRAE Journal - April 2015 - 27
ASHRAE Journal - April 2015 - 28
ASHRAE Journal - April 2015 - 29
ASHRAE Journal - April 2015 - 30
ASHRAE Journal - April 2015 - 31
ASHRAE Journal - April 2015 - 32
ASHRAE Journal - April 2015 - 33
ASHRAE Journal - April 2015 - 34
ASHRAE Journal - April 2015 - 35
ASHRAE Journal - April 2015 - 36
ASHRAE Journal - April 2015 - 37
ASHRAE Journal - April 2015 - 38
ASHRAE Journal - April 2015 - 39
ASHRAE Journal - April 2015 - 40
ASHRAE Journal - April 2015 - 41
ASHRAE Journal - April 2015 - 42
ASHRAE Journal - April 2015 - 43
ASHRAE Journal - April 2015 - 44
ASHRAE Journal - April 2015 - 45
ASHRAE Journal - April 2015 - 46
ASHRAE Journal - April 2015 - 47
ASHRAE Journal - April 2015 - 48
ASHRAE Journal - April 2015 - 49
ASHRAE Journal - April 2015 - 50
ASHRAE Journal - April 2015 - 51
ASHRAE Journal - April 2015 - 52
ASHRAE Journal - April 2015 - 53
ASHRAE Journal - April 2015 - 54
ASHRAE Journal - April 2015 - 55
ASHRAE Journal - April 2015 - 56
ASHRAE Journal - April 2015 - 57
ASHRAE Journal - April 2015 - 58
ASHRAE Journal - April 2015 - 59
ASHRAE Journal - April 2015 - 60
ASHRAE Journal - April 2015 - 61
ASHRAE Journal - April 2015 - 62
ASHRAE Journal - April 2015 - 63
ASHRAE Journal - April 2015 - 64
ASHRAE Journal - April 2015 - 65
ASHRAE Journal - April 2015 - 66
ASHRAE Journal - April 2015 - 67
ASHRAE Journal - April 2015 - 68
ASHRAE Journal - April 2015 - 69
ASHRAE Journal - April 2015 - 70
ASHRAE Journal - April 2015 - 71
ASHRAE Journal - April 2015 - 72
ASHRAE Journal - April 2015 - 73
ASHRAE Journal - April 2015 - 74
ASHRAE Journal - April 2015 - 75
ASHRAE Journal - April 2015 - 76
ASHRAE Journal - April 2015 - 77
ASHRAE Journal - April 2015 - 78
ASHRAE Journal - April 2015 - 79
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ASHRAE Journal - April 2015 - 81
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ASHRAE Journal - April 2015 - 84
ASHRAE Journal - April 2015 - 85
ASHRAE Journal - April 2015 - 86
ASHRAE Journal - April 2015 - 87
ASHRAE Journal - April 2015 - 88
ASHRAE Journal - April 2015 - Cover3
ASHRAE Journal - April 2015 - Cover4
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