Peak Demand Information

Lavallette Electric Utility Customers


The Lavallette Electric Utility needs your help and cooperation. Each year the Borough purchases its energy requirements from the open market. Prices for the raw energy component have been steadily declining over the last three years and have been the driving factor in the rate reduction that has been passed along to the Lavallette electric utility customers.


Another significant component of the electric rates charged is called capacity. These charges are regulated and set annually by the Regional System Operator known as PJM Interconnection (PJM). Capacity charges are based on the peak demand or use of all of the Lavallette electric customers combined. PJM sets the annual capacity charges based upon the average demand of the five highest peak demand days incurred by the system multiplied by the rate set by PJM. The peak days occur during the summer months, typically in late June, July or August. The Borough pays those capacity charges twelve months a year based upon the average of those highest five days. Reducing the peak energy demand on each of those five days would significantly reduce the Borough annual capacity charges.


As a rate payer of Lavallette Electric how can you help?  The daily peak demand occurs between the hours of 3:00 pm and 7:00 pm on those peak days; Monday through Friday only. When it is anticipated that one of those peak days is occurring, you will receive a voice message through the Borough’s automated notification system. We asked that when you do receive this message you do what you can to reduce your energy use during that period; such as turning off or unplugging all unused fixtures, electronics or appliances or setting the temperature of your air conditioning unit to a highest comfort level possible. By doing so, you will help the utility reduce our energy costs and give us the ability to pass those savings on to our customers.


Thank you for your cooperation