Understanding Demand

A cost-of-service study showed that we need to better match the cost of peak usage with peak power costs on the grid. The buildout of solar and wind energy can cause shortages in available power when the wind isn't blowing and the sun isn't shining. When a power supply and demand imbalance occurs, BEC has to pay for power. 

The addition of a demand charge reflects the way your cooperative pays for wholesale power. A demand charge accounts for these higher grid costs during times of peak demand and this change will better align member rates with wholesale power costs. 

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 $1.50/kW rate.

The average residential demand for BEC members is 4.6 kW. 

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.

You can track your demand several ways. 

1. Your monthly demand is posted on your electric bill in the Account Detail section of the bill.
2. You can view your demand in SmartHub (both the mobile app and desktop version). In the menu, select Usage, then Usage Explorer, change the Usage Type to [kWh and Demand kW], and a line will appear to show your demand. Note: demand for all meters will show, just remember that you will not incur a demand charge for off-peak meter usage. 
3. You can view your demand in MyMeter. Once logged in, change the view from "Consumption" to "Demand" to be able to view kW demand when you hover over a day. Note: demand will appear for each meter, just remember that off-peak meters will not incur a demand charge. 

Off-peak meters are excluded from a demand charge since these loads are controlled (shut off) during peak demand periods. Off-peak loads do not contribute to supply and demand imbalances on the grid. They actually help to balance the grid when they are controlled during peak demand periods.

The simplest way to lower demand is to spread out the use of major appliances. By not using too many high-power appliances at once, you will minimize your demand. Example: electric oven, dryer, washing machine, air conditioning, etc. See the graphic below for example of how running multiple items at one can affect demand.