This Week’s Energy Alert
One of the most important electric demand weeks of the summer is here.
Weather forecasts indicate that Tuesday, June 30 through Friday, July 3 should all be treated as potential Peak Load Management days throughout the PJM region.
Current conditions suggest Wednesday and Thursday afternoon have the greatest likelihood of becoming among t
he highest electric demand hours of the 2026 summer, and therefore, the highest probability of PJM Demand Response events.
Organizations with Peak Load Management strategies should remain prepared throughout the week.
Remember…The electric grid doesn’t announce in advance which few hours each summer will become the most important. Preparation must occur before those hours arrive.
One Hot Afternoon Could Influence Your Electric Costs for an Entire Year
Most organizations see a heat wave.
At RD Energy, we see one of the most important financial opportunities of the year. That surprises many people. Here
’s why.
Most Ohio organizations don’t realize that a handful of extremely high-demand summer hours can influence a portion of their electric supplier costs for an entire future capacity year.
Not an entire month. Not an entire season. Just a few critical afternoons. Those few hours can become some of the most financially valuable hours of the year.
For organizations properly prepared, reducing electric demand during qualifying Peak Load Management periods may s
ignificantly reduce future supplier capacity costs.
As a general illustration:
- 100 kW of qualifying load reduction may reduce future supplier capacity costs by approximately $12,000 during the June 2027 through May 2028 planning year.
- 1,000 kW of qualifying load reduction may reduce future supplier capacity costs by approximately $121,500.
Actual results vary based upon your utility tariff, electric supplier agreement, Peak Load Contribution (PLC), operational characteristics, and successful execution of your Peak Load Management strategy.
The opportunity is real. But very few organizations are positioned to capture it.
The Three Pieces Most Organizations Are Missing
Many people believe Peak Load Management simply means turning equipment off. It doesn’t. Successful Peak Load Management requires three separate pieces working together.
- The Right Contract Structure
Even if your organization successfully reduces demand, your electric supplier agreement must be structured so you actually receive the financial benefit.
Unfortunately, not every contract is. Contract language matters. Understanding how capacity costs flow through your agreement matters.
One of the first questions every organization should ask is:
“If we successfully reduce our Peak Load Contribution, who receives the savings?”
- A Well-Designed Strategy
Peak Load Management starts months before the hottest day arrives.
Successful organizations identify in advance:
- Equipment that can safely be reduced
- Processes that can temporarily change
- Acceptable comfort adjustments
- Production alternatives
- Facility operating procedures
- People Who Know the Plan
Even the best strategy fails if no one knows what to do. When a Peak Load Management alert arrives, there isn’t time for meetings.
Everyone should already know:
- Who receives the notification
- Who makes the decision
- What equipment changes
- When operations return to normal
Energy Coach’s Corner
One of the most common comments I hear is: “We still have another year left on our electric contract.”
I understand why people think that means they should wait. But today’s market doesn’t work that way.
- Peak Load Management.
- Demand Response.
- Future procurement planning.
- Capacity budgeting.
- Contract strategy.
These opportunities begin long before a contract expires. Waiting until renewal often means waiting too long. That’s one reason we’ve always believed:
An energy contract is not an energy strategy.
The organizations that consistently outperform others don’t simply buy electricity well. They manage energy as one of their largest operating expenses every month of the year.
Market Snapshot
Electric Markets
Electric prices remain well above historical averages while PJM capacity costs continue reshaping electric budgets across Ohio. Continued growth in manufacturing, AI data centers, electrification and transmission constraints suggests long-term planning has never been more important.
Natural Gas
Natural gas prices continue responding daily to changing weather forecasts, storage reports, production trends, LNG export growth and international events. Volatility is expected to remain elevated as summer cooling demand continues. The second half of 2027 is when natural gas prices are forecasted to begin their trend higher as LNG exports grow up to 40% and supply and demand tightens.
Looking Ahead
Many analysts believe the next several years could produce some of the highest electric costs Ohio organizations have experienced.
Organizations with a long-term energy strategy should be better positioned than those simply renewing contracts wh
en they expire.
One Question to Consider This Month
If your organization received a Peak Load Management notification tomorrow afternoon…
Would your contract…Would your people…Would your operating plan……all be ready?
If not, the best time to prepare is before the next critical peak day—not during it.
RD Energy: Helping Ohio organizations spend less time worrying about energy—and more time focusing on their mission.