What are normal and peak running loads?

How to reduce your business’s peak load and lower your monthly energy bill

It’s very likely that your business doesn’t use the exact same amount of energy all day long—and that fluctuation could be costing you.

When you start up all of your equipment in the morning, or when you are using all of your machinery at your most active hours, your energy company is noticing and might be pumping up your energy bill. Yikes.

Unfortunately you’re helpless until you can identify your business’s normal and peak running loads. Only then can you start mitigating those extra charges on your monthly power bill. 

So let’s get into it.

What are normal and peak running loads?

Normal load refers to the standard energy consumption that your business experiences during its daily operations. This includes your minimum energy needs and expected energy needs for your basic business operations. Normal load has two sub categories: base load and occupied load:

• Base Load: Your company’s base load is the minimum amount of energy required to run your daily essential operations, even when no one’s in the building. You will always be running on your base load requirements, even during non-peak hours. Think of base load as the absolute minimum energy requirements of your building to keep it running.
• Occupied Load: Occupied load is the expected energy your business needs when you are actively occupied. This is the energy consumed by your equipment, lighting, HVAC system, and other resources. While occupied load isn’t a constant like your base load is, the occupied load is still predictable and consistent.

As opposed to normal load, peak load is the absolute maximum energy demand your business experiences when your activity is at its highest. This surge in energy consumption is often referred to as the "startup spike" and typically occurs when various systems, machinery, and equipment are initiated simultaneously. Peak load is characterized by its intensity and brevity, and for many businesses this happens at specific times in the day.

How does peak load affect my energy bill?

Now that you understand normal and peak running loads, we can answer your burning question: how does peak load affect your energy bill?

Here’s the most important takeaway: your energy company doesn't just charge you for the total amount of energy you use; they charge you extra for the hours you hit your peak load as well. 

‍And here’s the “why”: when your business requires a spike in energy demand (your peak load), your energy provider has to supply that additional power instantly. This may require them to break out the backup generators or tap into reserve energy sources—both of which come with additional costs to them. Energy companies don’t want to pay for your energy spikes, so they pass those peak-use costs onto you, the business. And not only that, they can also charge you for the peak power they have to keep in reserve, since your demand could spike at any moment and they need to ensure they can provide you with the power your business needs. 

So here’s the obvious solution: lowering your peak load will lower your power bill. 

‍Yes, you can strategically manage and reduce your business's peak load to prevent extra fees and charges on your power. Let’s learn how.

How to reduce your business’s peak load

Here are some actionable strategies you can use to manage those high-energy surges that are bulking up your monthly energy costs:

1. Implement a staggered startup
   A staggered startup is when you intentionally activate your equipment and machinery at different times throughout the day. This prevents a single, simultaneous moment of energy demand from your business, effectively eliminating any single energy spike during your business day. Boom, no more energy-spike charges on your energy bill. Even though it might be a slight inconvenience to have to stagger your equipment startup times, you could save quite a bit on your monthly power bill, making this strategy very often worth the hassle in the long run.
2. Streamline your machinery
   ‍It’s this simple: if you have equipment you don’t really, really need, get rid of it. Audit your business operations and identify any extraneous machinery that could be increasing your peak load. In the same vein, consider swapping old machinery for energy-efficient equipment that uses less overall energy.
3. Optimize your HVAC systems
   Heating, ventilation, and air conditioning (HVAC) systems can be major contributors to your peak load. You can try adjusting temperature setpoints during your known peak hours or investing in modern, energy-efficient HVAC equipment. You could also implement a zoning strategy by dividing your space into distinct zones with independent temperature controls to limit the overall HVAC use throughout your facility.
4. Participate in demand response programs
   If you’re flexible on your hours of operation, you might consider looking into “demand response” programs that incentivize businesses to reduce their electricity consumption during peak demand periods (which typically fall during business working hours). You can voluntarily lower your energy usage during specified times to lower your power bill and contribute to overall grid stability.

You have options

Listen, you can audit your facility yourself to try and find inefficiencies or excess loads on your power system. Or you can trust the pros!

Electripure’s experts will inspect your facility (for free!) to find ways you can save on your monthly power bill—beyond just reducing your peak load hours. We’ve got proprietary tech that can read energy data and filter your energy that could save you up to 20 percent on your monthly power bill.

‍When you’re ready to get your money out of the energy you’re paying for.Contact us to schedule an appointment