Sorry if this has already been reported/discussed, but didn't see mention of it in PCM08 forums...
I assumed that "Stay w/Group" option forces the rider to exert as much energy as necessary to stay with the group which he is riding, but not more than the necessary energy. This should be proven by
1) Noting the heart rate when riding along with your group (when "Stay w/Group" is set); let's say heart rate is "N"
2) Then changing to "Dot" setting, adjusting the amount of energy to exert to keep pace with riders around you. Once you find that exact amount of energy to exert, in theory, your heart rate should be equal to "N".
However, what I've noticed (especially on steep climbs) is that when my rider's heart rate reaches about 168, I change from "Stay w/Group" to "Dot" and then adjust the amount of energy he's exerting to keep him in pace with the riders he's currently riding. I'm able to lower his heart rate often between 155 - 160 and he'll maintain his speed. Along the way to the top, I'll have to constantly adjust the amount of energy he's exerting every 5 or 10 seconds (in real-time), but by doing this I reach the top of the steepest moutains with full yellow bar.
Is that a known bug or just a feature that can be exploited? Or does "Stay w/Group" just require more energy?
One thing to remember is there are plenty of accelerations and changes in pace when climbing in game. So, if you have 'stay with pack' on, I guess you just end up matching them and losing lots of energy.