Options To More Effectively Manage Energy During The Summer Heat Pt. 1


Options To More Effectively Manage Energy During The Summer Heat Pt. 1

Posted by Ben Chadwick on June 14, 2013

Summers can fill power consumers with dread as high temperatures and increased air conditioning usage lead to major increases in monthly bills. Our objective is to change that perception through innovative new power agreements that help customers view the volatility of the summer as an opportunity, not a burden.

How do Constellation customers currently take advantage of these periods of high energy usage? We provide a snapshot below.

How It Works: Lowering Consumption During “Conservation Hours”

Fixed-price power rates have been the norm for most customers for decades. This is understandable – these customers like the budget certainty and simplicity that comes from knowing they will pay the same price for power regardless of when they consume it. Yet, there’s a huge disconnect between what the customer is paying during the peak hours of the summer and what it actually costs generators and suppliers to provide it. This disconnect is in part the reason why summer power demand and prices are so high: most customers have no economic motivation to use less power.

The disconnect between electricity user and supplier is exactly the problem that Constellation was looking to solve when it began offering Price Response as a part of its fixed price power agreements. With Price Response, customers keep what they love about their fixed rate, namely having Constellation manage the risks of the wholesale power markets and provide price certainty through the contracted term. But now their agreement comes with an upside that has never been there before. Periodically throughout the term of their agreement, when power prices spike and Constellation notifies the customer of these “Conservation Hours”, customers receive the option to earn money for curtailing energy usage. These Conservation Hours can occur at any time of the year, but the majority of these opportunities have historically occurred in the summer, due to higher electricity demand.

To further explain just how Price Response will work for you, take a look at the graphic below (click to expand):

Constellation Price ResponseIt’s also worth noting that participants of Price Response are never obligated to curtail their usage during Conservation Hours. Participation and active involvement in the program is solely up to the customer.

Interested in Price Response or would like some more information? You can contact us by phone 888-447-8660 or email

Click HERE to view Part 2, which discusses another option that can help you reduce those high summer capacity and transmission costs that account for about 20-30% of a power bill.

Topics: Energy Management

Ben Chadwick

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