06/03/2026
Great opportunity with Ohio State University Extension - Wayne County
On-Farm Energy Management: Understanding Peak Load Contribution and Capacity Charges
Presented by: Eric Romich, Professor & Extension Specialist, Energy Education
Friday, June 12, 10-11am, via Zoom
Link to join: go.osu.edu/061226capcacitycost
Five Hours, Big Costs: Taking Control of Farm Energy Costs.
Rising electricity costs are being driven by changes in the regional power system, growing demand, and higher capacity market prices. This program is designed to help farmers understand annual capacity obligations and how they affect overall electricity costs. Participants will learn the difference between monthly peak demand charges and annual capacity obligations, with a focus on how peak load contribution (PLC) during a few critical summer hours can shape fixed charges for the entire year. Using real farm examples, the session will explain why some farms are seeing sharp increases in costs and highlight practical strategies to manage energy use, reduce exposure to rising charges, and explore predictive modeling concepts that may support peak shaving.
Key Topics Covered:
- Introduction to RTOs, PJM, and Electricity Markets
- Farm Electric Bill Components: Energy, Demand, and Capacity
- How Annual Capacity Obligation Is Calculated
- Understanding Farm Peak Load Contribution (PLC)
- PJM Capacity Auctions, Markets, and Rising Prices
- Farm Examples: Rising Capacity Costs on Monthly Bills
- Load Management Strategies to Reduce PLC