Texas / ERCOT example

How 4CP and 12CP can produce different exposure

This simplified example illustrates why a facility that manages four summer coincident peaks may still face greater transmission exposure under a year-round monthly structure.

Illustrative facility

10 MW operating load

Under 4CP, exposure is concentrated in four summer coincident-peak intervals. Under 12CP, exposure may reflect a monthly coincident peak in every month of the year.

Illustrative 4CP average 8.0 MW

Reduced load during the four summer coincident-peak intervals.

Illustrative 12CP average 9.2 MW

Higher average exposure across twelve monthly coincident-peak intervals.

Change in billing determinant +1.2 MW

Before any change in rates, rules, interval definitions, or operating constraints.

What this means: A facility that successfully manages four summer peaks may still have materially higher exposure if transmission allocation shifts to a year-round monthly structure.

The example is illustrative only. Actual billing depends on the applicable TDSP tariff, final regulatory rules, meter data, billing-determinant definitions, and REP contract structure.