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 $1.00 per kVa. If you have a 10 kVa demand, your demand charge will be $10.
Demand Calculator
Use this estimator to see how stacking your appliances impacts your demand needs and how you can manage demand charges.
Lower Your Demand
The easiest way to manage your total demand is to limit how many appliances you use at once. Instead of using several electrical appliances at the same time, spread their usage over several hours. For example, use your clothes dryer and dishwasher at different times of the day. The fewer appliances you use at once, the lower your monthly demand will be.
Frequently Asked Questions
Demand is the measure of the maximum amount of electricity you used at any given point in the billing period. It was the 15-minute period during the month when you had the most electric appliances running at one time. Members with a higher demand place more strain on the electric grid, so their charge will be higher than someone who have less.
Your monthly bill has shown your demand since November 2019, and we began billing the demand charge on March 1, 2023.
Most utilities “bundle” their demand and usage charges instead of breaking them out. At Pioneer Electric, we strive to be transparent in our billing practices, so we itemize members’ bills. This also allows members to see their charges and take steps to control them.
Your monthly bill includes a line item for demand. It is not unusual for your demand to be the same each month. That’s because you are using the same appliances at the same time.
Your electric meter displays your usage in kilowatt-hours as well as your demand in kVA. If you watch your meter, it will rotate between these views. The number you see on the meter represents the 15 minutes since your last billing cycle when you had the most electric appliances in use at the same time. The demand reading on your meter is reset every month on your “read date”.
Our costs are largely dependent on demand because we must build our system and have generating resources in place to meet the highest demand, even if it’s for only a few hours each year.
The easiest way to lower your demand is to reduce the number of appliances in use at the same time. Stagger the times when you run your dryer and dishwasher. Better yet – use the delay function to have them run late at night. You can still use all your appliances, just try to run them at different times.
Replacing an electric furnace with a high-efficiency heat pump is also a great way to lower your demand. For manufactured home-owners, we offer rebates to help cover that cost. For site-built homeowners, we offer rebates for dual fuel and mini-split units that also help lower demand. Click here for more information about our rebate programs.