Curious About Coincident Peak? Here’s Why It Matters (and How to Avoid It).

Curious About Coincident Peak? Let’s Break It Down.

If you manage energy for a commercial or industrial facility, you’ve probably seen mysterious demand charges spike on your bill—and wondered why. Welcome to the world of Coincident Peak (CP) pricing. 

CP charges are tied to system-wide demand events—those critical, high-load hours when everyone on the grid is using energy at the same time. The catch? You don’t always know it’s happening until after it’s over.

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Why CP Events Matter More Than You Think

Utilities and REPs use CP events to help encourage end users to consider using less energy and reducing grid stress—but the cost to your business can be huge. In regions like ERCOT, PJM, and MISO, a few periods of poor timing can define your entire year’s demand charges.

Think about that: 4 hours = 12 months of financial impact.

And these charges often hit even when you’re running efficiently. If your facility is active during peak system hours, you’re on the hook—whether you knew about the event or not.

The Bigger Impact: Why Load Management Matters

When facilities respond to CP, the results go beyond lower charges:

Cost Avoidance

• CP programs often drive 20–40% of a facility’s total demand costs

• Just one good response window can equal tens of thousands saved

Operational Alignment

• CP awareness helps facilities fine-tune overall energy use

• Cross-team coordination increases between ops, energy, and finance

Sustainability Synergy

• Reduced grid stress supports broader decarbonization efforts

• CP actions can be reflected in ESG reporting and internal KPIs

How to Respond to Coincident Peak Events

Responding to CP isn’t about turning everything off—it’s about being strategic. A few smart moves, at just the right time, can dramatically reduce exposure to demand charges.

Suggested CP Response Strategies:

• Pre-cool early, then ease off HVAC during late afternoon

• Delay energy-intensive processes until after the peak window

• Dim lighting or shut off non-essential equipment temporarily

• Use building automation to stage or stagger operations

• Alert onsite teams to coordinate around forecasted windows

Even partial load reductions—if timed correctly—can help you avoid thousands in charges tied to just a few hours all summer.

The Problem: You Can’t Respond to What You Can’t See

Coincident Peaks don’t follow a schedule. They’re not marked on a calendar. They’re determined by how everyone else behaves—and often confirmed retroactively by the utility.

That’s why CP management is less about brute-force reduction, and more about strategic awareness.

📉 Example- Before & After: A Load Profile in Action

Here’s what a CP-aware facility looks like compared to one operating as usual:

The Solution: Forecasts + Timely Alerts

Try for Free for the summer: CP Trial Now Available

This summer, we’re offering a free trial of THG’s Coincident Peak alert service. You’ll get:

• Same-day CP forecasts

• Tailored notifications for your market

• A firsthand look at how proactive load management works

Whether you’re curious about CP or determined to decimate demand charges, this is your chance to see the impact of one simple, strategic change.

Let’s stay one step ahead of the summer season—together.

Download a PDF version of this guide