You may have noticed a new line added to your bill in August 2024 labeled “demand.” While our commercial members have been familiar with demand charges for years, it’s important for residential members to understand demand and related costs due to changes in the electrical grid. You might have heard us talk about the “demand response program” and the importance of off-peak load management. But what exactly is "demand" when it comes to electricity?
Simply put, demand is like a speedometer. Get in the driver’s seat of your car for a moment. Energy (kWh) would be what is recorded on your car’s odometer – a measurement of total miles. Demand (kW) is like your speedometer – measuring the speed at which the energy flows. The demand reading is like the highest recorded “miles-per-hour” speed for that month.
Think of the electrical grid like a freeway. It has to be built to accommodate the largest amount of traffic it could see at one time even if there are only a few cars using it most of the time. During “high-traffic” or high-demand times, energy is more expensive. By spreading out your electricity use throughout the day and evenings, you can help the cooperative save on high-demand charges. That savings is passed onto members and ensures a more reliable and balanced grid for everyone.
What is Demand and How am I Charged?
The actual demand amount charged on your bill will be the highest demand for your service over a 60-minute period during the billing month.
Demand, measured in kilowatts (kW), is the rate at which power is consumed. 1 kW is equivalent to 1,000 watts. Energy, on the other hand, is measured in kilowatt-hours (kWh) and represents the total amount of electricity consumed over the billing period.
Demand charges are calculated using the single highest 60-minute interval of power consumption over the billing cycle multiplied by the current per kW rate. The average residential demand for BEC members is 4.6 kW.
How Can I Reduce My Demand?
To reduce peak demand see the suggestions below:
Spread out using major appliances across separate 60-minute periods throughout the day. Major electrical appliances that may contribute to high demand costs include the air conditioner, clothes dryer, water heater, electric range and oven.
Consider Off-Peak Electric Heat - Off-peak heating does not incur demand. When electric demand and market electricity prices are high, off-peak devices in the home automatically switch from an electric heat source to a backup source, such as propane or fuel oil. In exchange, participating members receive discounted off-peak electric rates, which are competitive with fuel oil and propane. Items connected to our off-peak program do not incur demand, saving you money. To learn how off-peak may work for you, please get in touch with our energy experts at 218-444-2540.
Monitor and view demand in SmartHub.
- Login to SmartHub
- Click on Usage/Usage Explorer
- Change Usage Type to kWh and Demand (kW)
- The dark line will show your demand over the green columns that shows your energy (kWh) usage
How To Use the Energy Demand Calculator
To get an idea of how stacking the use of household appliances affects your demand charges, select the appliances your household tends to use at the same time. It's easy to see how using multiple appliances at once can quickly add up. By toggling on and off appliances in this online estimator, you can see how staggering the use of large appliances throughout the day can help you manage your energy use and save on demand charges.
Note: Off-peak meters are excluded from demand charges. This means all equipment in your off-peak panel does not add to your demand, such as electric heating, water heating, dryers, etc.
The Demand Calculator is for informational purposes only and displays the estimated wattage of common appliances on Beltrami Electric's Standard Residential rate and does not include Energy Charges or Access Charges. The energy required to run appliances can vary by brand and model. You can use the demand calculator below to see estimations of the demand created by running certain appliances.
