Understanding Peak Demand Days

Coincident Peak Days
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A coincident peak day is one of the five highest-demand days during the summer months when PJM measures the peak demand, typically during the hour of the day with the highest electricity usage. Your average demand during these five peak hours determines your capacity obligation (or “capacity tag”) for the following year, directly impacting your overall energy costs.
Benefits of Load Curtailment
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Proactively reducing your consumption on coincident peak days can lower your business’s capacity obligation for the following year. 
 
This effort can help mitigate the impact of high real-time and day-ahead prices, ultimately saving your organization money on energy costs.