Find Us

5 Headquarters

4545 Fuller Dr. Suite 412
Irving, TX 75038
Phone: (972) 445-9584
Toll Free: (855) 275-3483
Fax: (855) 329-3493 
email5@energyby5.com

5 - Northeast

865 State Route 33
Ste 3 PMB 1077
Freehold, NJ 07728
Phone: (732) 774-0005
Fax: (855) 329-3483
email5@energyby5.com

5 - Mexico

CP 11000, Miguel Hidalgo
CDMX, Mexico
Phone: +5595287982
mexico@energyby5.com

LEARN

Category: Markets ERCOT

The Peak Predicting Predicament

June 22, 2020

Written By: 5

Market - ERCOT

Summer has arrived in Texas and electricity customers with a meter whose demand is greater than 700 kW should be paying attention to ERCOT’s peak day/hour forecasts. Taking steps now to reduce power usage during hours of the day when the electricity grid is at its peak will reduce delivery charges in 2021.

While summer officially started last Saturday, the temperatures in Dallas were not waiting for the summer solstice. On Monday, June 8th, and Tuesday, June 9th, DFW Airport recorded high temperatures of 96° F. Figure 1 shows the electricity load throughout ERCOT (in MWs) for each hour in that week.

During the week of June 8 - 12, the peak electricity demand on the grid happened on Monday afternoon (blue line) between the hours of 5:45 to 6:00 PM. Usually, the system peak occurs between 4:30 and 5:00 PM. This later peak could have been caused by a number of factors, but the one that stands out to load forecasters is the lack of the traditional rush hour. With many people still working from home, air conditioning is likely on earlier in the afternoon and without rush hour, that electric load seems to start earlier and sustain longer into the evening. Many who were previously commuting from 5:00 to 7:00 PM are now at home and consuming more electricity through various activities such as cooking and laundry.

ERCOT Load: June 8-12Figure 1: ERCOT Load: June 8 - 12

The next day, Tuesday, June 9th, high temperatures persisted across the state and climbed to a high of 98°F (orange line). Electricity demand grew as the temperatures rose in large metropolitan areas across the state and most forecasters expected the demand on the grid to be higher on Tuesday than it was on Monday. That day, ERCOT’s electricity load, even in the early morning hours, was materially higher than the previous day and trending just as forecasters had predicted. However, the grid hit its peak of 67,498 MWs between 2:45 and 3:00 PM, three hours earlier than the day before. After 3:00 PM, the peak demand on the grid began to fall and was actually lower than when the grid peaked on Monday, even though temperatures were higher.

The one significant difference between those two days was the fact that on Tuesday afternoon, many Retail Electric Providers were predicting Tuesday afternoon to set June’s peak load between 3:00 to 6:00 PM. The load data shows that this call for optional curtailment was successful.

The load response shown in Figure 1 offers a glimpse into a new dynamic where electricity customers are voluntarily responding to the predictions of load forecasters. At the same time, this voluntary load response and shift makes it more difficult to predict actual system peaks. We will continue to report on how load patterns are shifting throughout the summer and how to capitalize on these opportunities to reduce peak demand and keep delivery charges down for 2021.

Other Recent Posts

Featured Image
2 min read

Why the Name 5

By 5
May 15, 2025

We spend most of our lives in classes, sports and jobs that reinforce the need to look good and to be right, often at the expense of others. Many of our relationships become a zero-sum game; for me to... READ MORE >
Featured Image
7 min read

Actions to Take Today: Navigating Volatility in U.S. Energy Markets

By 5
May 9, 2025

From tariffs and recession risks to renewables and rising demand, this article outlines actionable procurement strategies tailored to today’s evolving energy landscape. READ MORE >
Featured Image
4 min read

What a 5X Increase in PJM Capacity Costs Means For Your Electric Bill

By 5
April 28, 2025

Capacity costs in the PJM Interconnection cleared at unprecedented levels in the latest auction. As shown below in Figure 1, the cost of capacity increased in many parts of PJM by 5x. While this chart... READ MORE >