CMLP outlines strategies to reduce peak load costs amid rising transmission charges

The Concord Municipal Light Plant (CMLP) is facing significant challenges with rising transmission costs, which are now outpacing capacity costs. During a recent meeting on January 8, 2025, officials discussed the implications of these costs on local ratepayers and the strategies CMLP can employ to mitigate expenses.

CMLP's "coincident peak," which reflects the demand during the hour the wider grid peaks, is crucial for understanding these costs. In 2023, CMLP's coincident peak matched its non-coincident peak at approximately 38 megawatts, indicating a direct correlation between local demand and regional grid demand. However, as transmission charges increase, the financial burden on CMLP—and consequently its customers—grows.

For 2025, CMLP anticipates paying $15,850 per megawatt each month for regional network service, translating to nearly $6 million annually. This cost can be alleviated if customers shift their peak usage. For instance, if a household can reduce its peak load by 2 kilowatts, it could save about $780 per year.

The meeting also highlighted the importance of energy storage and time-of-use rates as potential solutions. By encouraging customers to use energy during off-peak hours and utilizing battery storage, CMLP aims to lower its overall demand during peak times, thus reducing transmission and capacity costs.

As CMLP navigates these financial challenges, the focus remains on finding innovative ways to manage energy consumption and costs, ensuring that ratepayers are not unfairly burdened by rising expenses. The strategies discussed could play a pivotal role in shaping the future of energy management in Concord.