At GVEC, we’re committed to managing energy demands and pricing strategies that work in the best interests of our members. In industry terms, understanding concepts like “4CP,” “EEAs,” and “Peak Times” plays a crucial role in keeping our energy costs affordable and competitive.
Four Coincident Peaks (4CP) are the four highest 15-minute intervals of electricity demand across the grid, occurring during the hours of the hottest days in June through September. It is the method ERCOT uses to charge all utilities for their proportional use of the Texas transmission grid.
In short, GVEC’s efforts to manage demand during these peaks directly affect transmission costs, which are a direct pass-through to our members without markup (i.e., the Generation and Transmission rate). ERCOT uses these peaks to calculate next year’s transmission charges for providers like GVEC. As GVEC’s area grows, so does its share of these peak demands. For example, growth, combined with the expansion of infrastructure across the statewide transmission grid, led to a rise in the transmission rate from $2.37 per kilowatt per month in 2011 to $5.60 in 2024. By understanding and acting on this, we can work together to keep costs down.
Energy Emergency Alerts (EEAs) are used by ERCOT to maintain grid stability during peak periods where demand is at risk of exceeding available generation. EEAs are issued in levels, starting from a cautionary alert to more severe stages that require immediate action, such as significantly reducing power usage to avoid outages. Thanks to swift adherence to conservation measures during EEAs, we can quickly restore balance to the grid, ensuring energy remains available to everyone without interruption.
Think of the energy system as the world’s busiest airport during the holiday season—it’s a bustling hub where every kilowatt of electricity must be precisely coordinated. Calls for conservation and load reduction are like the airport asking passengers to take a later flight to avoid overloading the system. In energy terms, it’s when commercial and residential members power down non-essential processes, effectively delaying their energy “flight” to reduce strain during these peak periods. See more answers to FAQs here.
Throughout the year, GVEC utilizes real-time data and predictive analysis to anticipate Peak-Time events. Peak-Times typically occur on very hot summer days or extremely cold winter days when most people’s air conditioning/heating systems are keeping their homes and businesses cool or warm.
One effective strategy for managing demand and pricing during Peak-Times is negotiating with our commercial members to reduce their load by halting or rescheduling their high-energy activities or operations. Similarly, you will notice that GVEC encourages residential members to adopt energy-saving practices as well. You may think—just as one person—that these changes won’t make much difference; however, small changes really add up when more and more of us do them together. As a GVEC member, you can maximize your opportunities to contribute through the Peak-Time Payback program and collectively support grid stability, with all participants helping to reduce demand during peak times and battery owners playing a crucial role in enhancing capacity.
There is a balance between supply and demand on the Texas energy grid during peak demand hours during the summer months. Armed with the right information and taking proactive steps, we can all look forward to a more reliable and stable grid, translating into direct savings for you.
As always, I welcome your feedback and encourage you to reach out with any questions or concerns by phone at 830.857.1152, by email at dschauer@gvec.org or by mail at P.O. Box 118, Gonzales, Texas 78629.
