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AEI ISO Alerts 2026 Service Notice

Carlisle, MA -- June 02, 2026 -- AEI will be resuming its free ISO Alert service to help subscribers avoid coincident peaks with the electric power grid during the coming months of warm weather and heavy demand. The service will resume on Monday, June 15th, 2026 and continue through the last Friday in September.

New Methodologies for NY, PJM, and ERCOT

For 2026 we are introducing new methods for determining the basis for our reports and alerts. These new methods are intended to be more closely aligned with the way certain ISOs will ultimately call the peak hour at the end of the year. Specifically:

  • For NYISO, we will be using only the July and August peak hours as the benchmark load during the summer. This method avoids the issue we saw in 2025 where the peak on June 24th set the bar too high and too early given what ultimately happened in July and August.
  • For PJM, we will be using the "5CP" method where the Top 5 Hours in June through September are averaged to calculate the annual peak hour. In our reporting, we will reference the 5th highest hour as the benchmark since any value above that number will cause average of the top 5 hours to move higher. Be aware that this method will likely have many false positives in June due to the weight of an early month in the season. For all intents and purposes, this is equivalent to the default method we have always used except that we are recognizing the 5th top hour as the benchmark rather than the single top reigning annual peak (RAP) hour.
  • For ERCOT, we will take the single peak hour for each of the four months June, July, August, and September to build a composite (average) hour from those four hours. For months in the future we will use the corresponding months of 2025 as a proxy for the individual monthly peaks.

For all the other ISOs, nothing will change in the calculations. Peaks in 2026 are judged solely from ISO data collected since June 1st 2026. As usual, that means that peaks are occuring on nearly a daily basis as the season warms up.

New Support for G-3 Customers who Opt for Transmission Coincident Peak Billing

The Optional Transmission Coincident Peak Billing provision under the G-3 tariff uses a peak hour in each calendar month of the year to determine the billing demand. If you have opted for this billing, your charge is calculated using your specific, building-level peak demand recorded during the precise hour that the overall ISO New England regional network hits its peak for that month. If you elect this option, you avoid the standard 12-month ratchet (which sticks you with your own historic highest 15-minute facility peak). Instead, your charge resets monthly based strictly on how much load you shed during the single, regional ISO-NE peak hour of that specific month.

AEI is now ready to support you with a Morning Report and SMS alerts for all 12 months of the year. Contact us for pricing. We can also advise you if this tariff feature makes sense for your energy profile.

Capacity Charges 2026

Capacity Charges 2026 PJM remains the most significant demand-charge market for large customers with a 2026/2027 FERC-approved cap of $329.17/MW-day, up from $269.92/MW-day for 2025/2026. Conversely, ISO New England clocks in at approximately $2.59/kW-month, one of the lowest clearing prices in the market's history. In between the two sits NYISO with a NYC rate of about $132/kW-year and Rest of State at $51/kW-year.

Feeling lazy, we asked ChatGPT to summarize the charges across all seven ISOs and it chose to show them in order of value which seemed like a good way to compare them:

Ranking by Value of Avoiding 1 kW at System Peak

  1. NYC (NYISO) ≈ $130/kW-year
  2. PJM ≈ $120/kW-year
  3. NYISO Rest of State ≈ $50/kW-year
  4. MISO ≈ $45/kW-year
  5. ISO New England ≈ $31/kW-year
  6. SPP ≈ $0-20/kW-year
  7. ERCOT ≈ $0/kW-year

So, whether you're into energy efficiency or just a long-suffering Knicks fan, it looks like NYC is the place to be.

For more information, or to signup for this free service, please visit the AEI ISO Alerts website at https://www.aeintelligence.com/products-and-services/aei-iso-alerts.

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