You have probably seen “kWh” on your Piedmont Electric bill, and you have likely run into “kW” while shopping for an appliance or EV charger. They look almost identical, but they measure two different things and knowing which is which can help you make sense of your bill.
Power vs. Energy: The Speedometer and The Odometer
Think of your car. A kilowatt (kW) measures power, or how fast you are using electricity right now. That is like the speedometer, which tells you how fast you are driving. A kilowatt-hour (kWh) measures energy, or how much you use over time, which is like your odometer, which tells you how far you have driven.
Put them together and it is simple: power used over time equals energy. Run a 1,500-watt (1.5 kW) space heater for two hours and you use 3 kWh. The kW is the rate. The kWh is the total.
Which One Shows Up on Your Bill?
On the standard residential rate, your energy charge is based on kWh, the total electricity you used during the billing period. One kWh is about what 10, 100-watt light bulbs use in an hour. Your meter records the kWh, and the energy charge is simply those kWh multiplied by your rate.
That is why small habits add up. A 100-watt bulb left on for 10 hours uses 1 kWh. A 1,500-watt space heater over those same 10 hours uses 15 kWh, 15 times as much, because it pulls far more power every moment it runs.
Why kW Matters to You
Piedmont Electric is charged for our system-wide peak demand and lowering this peak, helps the co-op save. As a not-for-profit cooperative, we pass these savings along to you. Nearly 90% of our members are residential, so if everyone can reduce their peak demand a little bit, it will add up to big savings for everyone.
Save on Our Demand Rate
Members who can spread out their energy use can save by signing up for our residential demand rate. On the demand rate, members pay a lower energy rate (kWh) and add a demand (kW) component to the bill. Precooling or preheating your home before peak periods along with spreading out the use of large appliances can help you save.
The Bottom Line
You have two levers. Use less overall to lower your kWh, and spread out when you use it to lower your kW at peak. Flattening those peaks helps you and every member of the co-op save.
Want to learn more? Contact us at info@pemc.coop, on our web chat, via SmartHub or by calling one of our helpful member service representatives at 800.222.3107.