NEWS AND ISSUES

Peak Load Reduction: Help Control Energy Costs and Improve Reliability of Electricity

Electricity and Peak Demand
Since electricity cannot be effectively stored, electrical networks must instantaneously balance generation and load, i.e., supply must always equal demand. Therefore, there is a need to build for the peak because sufficient generation capacity must meet maximum instantaneous demand whenever it happens. Meeting varying demands requires a mix of generation capacity including base-load and peak-load generation.

Base Load Generation vs. Peak Load Generation
A base load generation unit is one that provides a steady flow of power regardless of total power demand by the grid. This unit runs all seasons except during the time when repairs or scheduled maintenance occur. Base-load plants usually run on low cost fuels such as nuclear or coal and are massive enough to provide a major portion of the power used by a grid. Therefore, these plants have high capital costs to build but low operating costs to run. In contrast, peak load units (also known as peakers) are power plants that generally run only when there is a high demand, known as peak demand, for electricity. In the U.S., this usually occurs in the afternoon, especially during the summer months when air conditioning usage is high. The time a peaker operates may vary from several hours a day to as little as a few hours per year. If a peaker is only going to be run for a short and variable time, it does not make economic sense to make it as efficient as a base load unit. Peak load units are generally gas turbines that burn natural gas, which is more expensive than coal and nuclear. Therefore, peak load systems tend to have low capital costs but high operating costs.

High Cost of Meeting Peak Increase
Wholesale electric prices in PJM market have risen considerably in recent years, primarily due to fast-rising natural gas prices. The escalating gas prices, however, do not fully explain the level of wholesale electric prices in PJM market. Increased demand for electricity, especially during the summer peak hours, is straining the market's ability to supply electricity. In order to meet growing peak demand, power companies run and maintain peak load units during times of peak demand. These systems go unused 90% of the time, resulting in inefficient use of investor, consumer and capital-market resources. Ever increasing peak demand also puts a strain on the transmission and distribution systems.

Peak Load Control and its Benefits
Compared with the supply-side option (i.e., increasing generation capacity and upgrading transmission and distribution systems), demand-side management (i.e., control of peak load) is more cost-effective. Peak-load control is a way by which consumers modify their level and pattern of electricity consumption to shed their peak electricity usage or shift their usage from peak to off-peak times. There are a lot of simple actions that business and residents can do to shift or shed their peak electricity usage. For example, customers can shift energy-intensive tasks such as laundry and dishwashing to off-peak hours (mornings, nights and weekends). Customers can also install programmable thermostats and set them at higher temperatures when away from home at daytime. Customers' peak load control can help reduce the peak load and thus change the load-shape by flattening out the load curve on utility systems ("valley-filling"). Peak-load reduction and other demand-side management options are cost-effective alternatives to the supply-side option. It is much cheaper to create a "negawatt" (reduced energy) than to generate a "megawatt" of electricity. Peak-load reduction is good for the consumers and the environment. Reducing electricity usage helps lower a customer's energy bill; reducing peak energy use helps ensure reliable and affordable electricity for homes and businesses; and reducing peak load minimizes the need for new capacity and, thus, reduces the amount of pollution produced from electricity generation.

Protect Your Money and Save Energy

What can you do to mitigate the impacts of fast rising energy costs on your incomes? What programs can you participate to control the energy usage? You have so much that you can do around your home to cut your energy costs. Below are some energy saving tips you can try around your home to reduce your energy bills. The DPA urges you to consider these steps that will help you manage your energy bills.

Save Energy

Replace incandescent light bulbs with compact fluorescent. ENERGY STAR rated compact fluorescents use only one third the energy of incandescent and last up to 10 times as long.

Turn off the lights when you leave a room.

If you have an extra refrigerator, unplug it if possible.

When buying new appliances, look for ENERGY STAR rated appliances. They are the most energy efficient.

Put computers in sleep mode when thay are not in use (turn off laptops).

Unplug things like power adapters that consume energy even when not in use -- vampire watts.

Select energy-efficient heating equipment. Your contractor should be able to help you compare energy usage. For furnaces, look for high Annual Fuel Utilization Efficiency (AFUE) ratings. The national minimum is 78% AFUE, but there are Energy Star models on the market that exceed 90% AFUE.

Install a programmable thermostat to control your home's temperature automatically; and set your thermostat as low as is comfortable. Keep your thermostat setting lower when you are not at home during the day and when you are asleep at night.

Clean or replace filters on furnaces once a month or as needed. Clean warm-air registers, baseboard heaters, and radiators as needed; make sure they're not blocked by furniture, carpeting, or drapes.

Test your ducts for any leaks or restrictions.

Lower the thermostat on your water heater to 120 degrees (water heaters sometimes come from the factory with higher temperature settings than are necessary).

Drain a quart of water from your water heater every three months to remove sediment that impedes heat transfer and lowers the efficiency of your water heater.

Insulate your hot water storage tank, but be careful not to cover the water heater's top, bottom, thermostat, or burner compartment. Insulate the first 6 feet of the hot and cold water pipes connected to the water heater. Install heat traps on the hot and cold pipes at the water heater to prevent heat loss (some new water heaters have built-in heat traps). Follow the manufacturer's recommendations; and when in doubt, get professional help.

Take more showers than baths. You probably use 15-25 gallons of hot water for a bath, but less than 10 gallons during a 5-minute shower.

Cover pans to cook food faster. Use pans that fully cover the burner. Turn off the oven and burners a few minutes before food is done. The food will continue to cook. Preheat the oven only when baking bread and cakes. Use an electric skillet, microwave oven or toaster oven whenever possible.

About 80%-85% of the energy used for washing clothes is used to heat the water. You can reduce this cost by using less water through washing full loads and using cooler water and cold-water detergents - switching the temperature setting from hot to warm cuts a load's energy use in half.

You can reduce drying costs as well. Air-dry clothes on clothes lines or drying racks. Clean the dryer's lint filter to improve air circulation, and don't over-dry clothes. Dry towels and heavier cottons in a separate load from lighter-weight clothes. Use the cool-down cycle to allow clothes to finish drying with residual heat. Also, periodically inspect your dryer vent to ensure it's not blocked.

Run your dishwasher only when it is fully loaded, and turn off the dry cycle and air-dry the dishes instead.

Insulate and Seal Your Home

Check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if it meets the levels recommended for your area. (Insulation is measured in R-values - the higher the R-value, the better your walls and roof will resist the transfer of heat.)

You can save 10% or more on your energy bill by reducing the air leaks in your home. Caulk, seal, and weather-strip all seams, cracks, and openings to the outside. Caulk and seal air leaks where plumbing, ducting, or electrical wiring penetrates through exterior walls, floors, ceilings, and soffits over cabinets. Install rubber gaskets behind outlet and switch plates on exterior walls. Close chimney flues and seal unused fireplaces.

Make sure doors and windows are tightly closed. Use a heavy-duty, clear plastic sheet on a frame or tape clear plastic film to the inside of your window frames during the cold winter months. Remember, the plastic must be sealed tightly to the frame to help reduce infiltration.

During the heating season, keep the draperies and shades on your south-facing windows open during the day to allow the sunlight to enter your home and closed at night to reduce the chill you may feel from cold windows.

If your home has single-pane windows, consider replacing them. New double-pane windows with high-performance glass are available on the market. Select windows that are gas filled with low-emissivity (low-e) coatings on the glass to reduce heat loss.

Plan Ahead
Both Delmarva Power and Chesapeake Utilities offer budget billing programs that help prevent major fluctuations in your bill. With budget billing, your energy costs are evened out so you pay about the same amount each month. By knowing what to expect on your bill, it's easier to manage your monthly expenses. The budget installment amount is established based on your past energy usage patterns. Each month, your bill will show the amount of your actual energy use for that month and your current "budget balance." Periodically, your budget installment amount will be reviewed and, if necessary, be recalculated based on your actual energy use. The amount you owe in the last month of the year will include your actual energy costs for that month, as well as the difference (plus or minus) between the amount you paid during the previous 11 months and the amount for energy actually used during those months. To qualify for budget billing your account balance must be current and your account must have 12 months of usage history.

For additional information concerning budget billing or to apply for budget billing, please contact your utility companies:

Delmarva customers, please visit:
www.conectiv.com/dp/your_home/budget_billing/index.cfm

Chesapeake customers, please call:
New Castle County: 800.427.2883
Kent County: 302.734.6700
Sussex County: Milford: 302.734.6700
Sussex County: Non-Milford 800.427.0015

Get Assistance
Customers with limited incomes may be eligible for a variety of programs that provide grants to pay home energy bills. The Delaware Energy Assistance Program (DEAP) is a federally funded program for low-income families that need help in meeting their costs of home energy. The Division of State Service Centers administers this program on a contractual basis with Catholic Charities, Inc. Funds are provided by the U.S. Department of Health & Human Services, under the Low-Income Home Energy Assistance Program (LIHEAP). DEAP services provide assistance to income eligible families to help them meet their home energy needs. Income eligibility is defined as 200% of the federal poverty level. Click the link here to find the detailed information on eligibility, the program's components and contact information.

There are also non-federal energy assistance programs sponsored by utility companies in Delaware. The Sharing Program is funded by the Chesapeake Utilities Inc. and administered by Catholic Charities in Kent and New Castle counties and by the Salvation Army in Sussex County. The Sharing Program assists elderly, disabled or fixed income households with winter heating costs. For more information, please visit www.chpkgas.com/customer/specialpayment.htm or call 302-674-1782 (New Castle and Kent) or 302-628-2020 (Sussex). The Good Neighbor Fuel Fund Program is funded by Delmarva Power and administered by the Salvation Army. Delmarva matches customer contributions with a donation from shareholders. To qualify, a household must first apply for LIHEAP. For more information, please call 302-472-0750 or 1-800-375-7117.

For more tips and information on energy conservation, please visit:
Delaware Energy Office
Partnerships for Home Energy Efficiency
U.S. Department of Energy
For a free copy of the Department of Energy's (DOE) very helpful Energy Savers booklet, click here.

Be Helpful
Share this information with family and friends. Make a donation to organizations that provide energy assistance to people unable to handle their energy bills.

Last Updated: Thursday April 05 2007