Commercial energy rates in Ohio, particularly within the PJM Interconnection region, are experiencing a sharp increase due to a combination of factors, including rising demand, limited supply, and the effects of a recent capacity auction. Businesses are facing significant price hikes, with some experiencing increases of 29% or more, and these higher rates are expected to persist through May 2026.
Factors contributing to this increase:
- Increased demand
- Less Energy is Being Produced
- PJM Capacity Auction
- Regional Price Volatility
Impact on Businesses:
- Higher Energy Bills- most have experienced a 27-30% increase from June to July
- Increased Operational Costs
- Pricing Uncertainty
We have been predicting these increases for several years now. The information above suggests these price increases persisting through May 2026. However, when was the last time energy rates decreased? Fact is, the more the economy expands as well as residential and commercial developments persist, the more energy required increases. This does not even take into consideration the amount of Energy required to power an AI Data Center- which is a GROWING concern.
A key problem is, though new electricity plants are being built, it isn’t keeping up with demand. Meanwhile, legacy energy plants continue to be decommissioned.
WHAT CAN BE DONE?
- Energy Efficiency Audits (WE CAN HELP WITH THIS!)
- Energy Efficiency Measures (POWER FACTOR CORRECTION; we do this!)
In most companies there is a disconnect between Maintenance and Accounts Payable when it comes to energy efficiency and strategies to to address energy expenses. Yes, Power Factor Correction (PFC) has an up front investment to design and install. BUT as with all great investments, it generates a Return on Investment – generally 18 months or less- and this is based on energy prices on the date of “proposal.” On several Power Factor Correction installments we conducted recently, our clients will have realized a return on their investment about three to five months sooner than projected. This does not even include ancillary benefits of more efficient operations, ie- motors and fans run cooler which may allows them to last longer between replacement.
The energy audit to determine your company Power Factor is complimentary- leaving your company with zero risk.
Contact us today to set up an energy audit and sizing.
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