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Peak Events
Texas continues to be a top relocation destination, putting more demand on the electric grid. The growth of data centers has also driven up electricity usage throughout the Electric Reliability Council of Texas (ERCOT) market.
To put it into perspective, in 2019, the all-time peak demand record was 75,820 megawatts. Just four years later, ERCOT shattered the peak demand record 10 times in June, July and August. The current record was set on Aug. 10, 2023 at 85,508 megawatts.
By understanding when system peaks occur, particularly in the summer, we can all help reduce CoServ’s transmission costs for the future while also making the grid more reliable.
What is peak demand?
Each year, transmission costs are based on a value called Four Coincident Peaks, or 4CP. Our 4CP is the measure of CoServ's total energy demand when ERCOT experiences the most overall demand - the four "peaks" - each summer. The lower CoServ's demand is during these peaks, the lower our energy costs will be the following year.
These four peak events occur once each month in June, July, August, and September, usually between the hours of 3 and 8 p.m. They're triggered when system demand is highest: usually on the hottest days of the month during the post-work/dinner hours when we're all arriving home, turning on the air conditioning, starting dinner, and running large appliances like dishwashers.
Peak usage times are unavoidable, but by reducing the amount of energy we use during these peak times we can help control our future costs.
How does this affect me?
ERCOT’s Four Coincident Peaks are important for CoServ because that’s how our transmission costs for the next year are determined.
By reducing overall electricity usage during peak times, CoServ Members can reduce our transmission costs and ultimately reduce future costs for everyone.
So, while doing the laundry at 5 p.m. won't be any different on an individual Members' next bill compared to doing it off-peak, long-term, this affects the PCRF on future bills for all CoServ Members.
How will I know a peak event is happening?
CoServ won't know until the end of the month which day was the peak for that month. However, by monitoring weather conditions and demand on the ERCOT grid, CoServ will know when there is potential for a peak day.
Remember that 4CP is a statewide measurement, and sometimes weather in other areas, like Houston or Austin, can have a significant impact on peak demand across the state.
If you have a Google Nest thermostat, you could earn bill credits just for reducing air condition usage through CoServ's Rush Hour Rewards program. If CoServ calls a Rush Hour Reward event, that's because there's a good chance the peak could occur that day. Click here to learn more about Rush Hour Rewards.
When should I adjust my habits?
Usually, peak demand happens between the hours of 3 p.m. and 8 p.m. during the summer months (June - September).
How can I help?
We encourage our Members to conserve electricity where possible to save energy, and money, on their bills. Waiting to do laundry until before or after peak hours, adjusting your thermostat a few degrees can make a big difference in the overall demand on the Texas grid.
Energy saving measures during Summer Peak Times
Steer away from using the following major appliances from 3 - 8 p.m.
HVAC
Raise your thermostat setting a few degrees during peak hours and close the shades to block some of the sun's warmth.
Dishwasher
Run this appliance outside of peak hours. You can also save by turning off the heat dry feature.
Water heater
Install a timer that turns your water heater off during hours when you're not likely to use hot water.
Washer and dryer
Run your washing machine and dryer in the morning or after 8 p.m. Washing in cold water and air-drying laundry can help, too.
Electric vehicles
Map out your electric car charging times. Avoid charging your car between the hours of 3 and 8 p.m.
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Want to get paid to save? For Members with Nest Thermostats, CoServ offers Rush Hour Rewards where Members can earn $10 bill credits each month during the summer, just for allowing their thermostat to be raised a few degrees during peak demand events.
This is an annual program, meaning that every year that you participate your savings continue to stack up!