Understanding Demand

Demand refers to the maximum amount of electrical power that is being consumed at a given time, as opposed to energy, which is the amount of power used over a period of time.

The Demand Charge line item that appears on your monthly bill represents the 15-minute interval with the highest amount of electricity used during that billing cycle – measured in kilowatts (kW).

As more appliances in your home run at the same time, your demand for power increases. The members in this example use the same amount of energy (kWh) to run their appliances, but each member is putting a different demand (kW) on the electric grid.





Your electric bill includes your total demand, which is your highest 15-minute interval of energy consumption during that billing period, which is measured in kilowatts (kW). The demand charge is 25¢ per kW. If you have a 10kW demand, your demand charge will be $2.50.

Demand Calculator

Use this estimator to see how stacking your appliances impacts your demand needs and how you can manage demand charges.