Electricity cost is primarily based on two charges: the energy charge and the capacity charge. The energy charge is based on the number of kilowatt-hours consumed. The capacity charge is based on the actual electricity usage at the single peak hour of electricity demand on the entire New England grid in the calendar year.
Since energy usage peaks in the afternoons on the hottest days, FEL and HAEC advise smart consumers to curtail consumption between the hours of 1 and 5 Thursday afternoon. Says Howard M. Plante, Vice President of Marketing at HAEC, “The capacity fee can be as much as 2.5 cents per kilowatt, therefore, any amount of electricity use reduction will help to reduce your capacity fee.”
There is no definitive method to know what will be the peak capacity hour in New England for the year, so FEL and HAEC have pledged to their customers that they will issue similar advisories when data indicates a particular day could be the peak. Data considered includes grid demand, weather forecasts and historical statistics.
The Freedom Energy Logistics family of companies obtains power at the lowest possible price for New England consumers. FEL Power (felpower.com) provides high-end energy management services in electricity and natural gas. Its unique Direct to Grid (or Self-Supply) model guides large-scale users into New England’s wholesale electricity market, guaranteeing them access to electricity at the lowest available cost. Halifax American Energy Company (haecpower.com) is a retail electric energy marketer which, in partnership with South Jersey Energy, specializes in transactions converting wholesale and bulk power products into shapes and durations suitable for industrial, commercial, institutional and governmental end users. Its newest division, Resident Power (residentpower.com), is New Hampshire’s first competitive electricity aggregator to focus exclusively on residences and small businesses.