This holiday week is expected to bring intense heat across much of the region, with temperatures climbing into the mid- to high-90s. Ohio manufacturers should also be watching the electric grid, as the heat could drive some of the highest demand hours of the summer.

Regional grid operator PJM procures electric capacity to ensure enough power is available when demand is highest. This year, customers across PJM will pay more than $16 billion for capacity, compared with about $2 billion just two years ago.

A manufacturing facility’s capacity costs are based on how much electricity it uses during the five highest “coincident peak” hours between June 1 and Sept. 30. In other words, five peak hours can affect what a plant pays all year. Reducing usage during those peak hours can help lower a facility’s share of capacity costs.

Based on PJM load forecasts, the period from June 30 through July 4 could produce several of this summer’s peak hours, most likely between 4 and 8 p.m. Members that manage peak usage or participate in demand response should be prepared for potential action this week. Those that are not already managing peak demand should consider how these strategies can help control costs.

The Ohio Manufacturers’ Association (OMA) encourages members to connect with OMA’s energy engineers to learn more about peak management, demand response and other strategies to reduce electricity costs.

This week’s heat will also intensify broader questions about electric reliability and rising capacity costs. Ohio manufacturers are already paying significantly higher prices for the promise of reliability. If customers are being asked to pay billions more, grid planning must be grounded in verified demand, sound forecasts and clear accountability.

Members can learn more through OMA energy resources and are encouraged to register for the OMA Energy Conference on Aug. 27. 7/1/2026