2026 COINCIDENTAL PEAK ALERTS

Reduce Electricity Consumption on Peak Demand Days

5 provides a weekly outlook, similar to a 7-day weather forecast, to alert clients when conditions indicate a high likelihood of peak electricity demand.

When an alert is issued, consider taking the following actions during afternoon hours to reduce electric load:
  • Pre-cool buildings earlier in the day, then adjust thermostats upward during the projected peak period
  • Reduce fan speeds on air handlers
  • Dim or turn off non-essential lighting
  • Shut down pumps, air compressors, or other high-demand equipment when possible
  • Adjust operational hours or schedule downtime in the afternoon
With elevated energy prices, any steps taken to reduce electricity usage during this summer’s CP intervals can significantly lower your business’s electricity costs in 2027.
 
Details for each regional power grid are outlined below.

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Learn About Each Regional Power Grid

ERCOT’s 4CP Program
In Texas, the program is known as 4CP, referring to the four summer months used to calculate key components of the following year’s electricity costs. A facility’s demand (kW) is measured during the highest 15-minute interval in each month (June through September). These four values are averaged to determine the 4CP demand, which TDSPs use to calculate transmission charges for the next calendar year.

PJM’s 5CP Program
PJM uses a similar approach but identifies the five highest demand hours across the five highest peak days between June and September. Unlike ERCOT, these peak hours are not limited to one per month and may occur across consecutive days, such as during a heatwave.

The average of these five hourly demand values determines a meter’s Peak Load Contribution (PLC), also known as Capacity Obligation, for the following planning year (June 2027 through May 2028).

PJM regions include: Pennsylvania, New Jersey, Maryland, DC, Delaware, Ohio, and Illinois.

NYISO 1CP Program
NYISO differs by using the single highest demand hour on the grid during July and August (excluding weekends and holidays). A meter’s demand during that hour determines its Installed Capacity (ICAP) tag, which sets capacity obligations beginning in May 2027.