By Ben Walker, Director of Energy Market Analytics, Hospital Energy and Steven Jalowiec, PE, CHFM, SASHE Vice President Engineering Services Hospital Energy
Introduction
Hospitals in New England are subject to an electricity supply charge called capacity. This line-item comprises approximately 20% of total energy supply spend, though this can vary by location, by year, and by your facility’s load pattern. An auction establishes the rates for capacity years into the future and is conducted annually by the interstate grid operator in New England, ISO-NE. The charge is billed through the 3rd party supplier, but this charge will not be transparent on many fixed rates contracts. The most important thing to understand is that hospitals can reduce these charges through various programs which result in lower usage particularly during a few peak hours in the summer. Your trusted energy advisor can help you identify the cost impact to the hospital and various methods available to reduce these costs.