As your electric cooperative, our mission is to provide reliable, affordable power while keeping you informed about changes that may impact your home. Beginning in May, we are introducing a new residential demand rate for members.
What Is a Residential Demand Rate?
Traditionally, most members have paid for electricity based on the total number of kilowatt-hours (kWh) used each month. The residential demand rate adds another component: demand, measured in kilowatts (kW). While kWh measures how much energy you use over time, demand measures the highest amount of power you use at your peak moment during the billing period.
For example, if several large appliances—like your air conditioner, water heater and clothes dryer—are running simultaneously, your demand increases. The residential demand rate will include this peak usage, while offering a lower rate for your monthly energy consumption.
Why Are We Offering a Demand Rate?
High peak demand periods put pressure on our grid and increase costs. By introducing the demand rate, we encourage members to be mindful of when and how they use electricity. Spreading out usage and avoiding big spikes helps lower overall costs for the cooperative, which in turn supports stable rates for all members. It also allocates cost equitably—members who create higher demand may pay a bit more, while those who manage their use can benefit from lower bills.
How Will the Demand Rate Affect Your Bill?
If you sign up for the residential demand rate, your bill will now include the demand charge which is based on your highest kW usage during the month. The demand charge is calculated by measuring your highest 15-minute interval of electricity use, so managing when you run major appliances can help reduce this cost.
During the summer, this on-peak period occurs from 1-6 p.m. on weekdays. During the winter, these on-peak times occur on weekday mornings from 6-10 a.m. Energy used during all other times doesn’t count towards your demand.
Most members won’t see drastic changes, but it’s important to be aware of your usage habits. For instance, running your dishwasher, laundry, air conditioner and other major appliances all at once will increase your demand. Spacing out these activities can lead to savings.
Tips for Managing Your Demand
- Run large appliances during off-peak times.
- If you need to use major appliances, be sure to run them at different times instead of all at once.
- Use programmable thermostats to manage heating and cooling schedules.
- Consider energy-efficient upgrades for large appliances.
- Monitor your energy usage through SmartHub with our online tools or mobile app.
We’re Here to Help
Our cooperative is committed to helping you make this transition as smooth as possible. Visit our website at pemc.coop or call 800.222.3107. Our member services representatives are ready to answer your questions and offer resources. Together, we can help you benefit the most from this new rate, ensuring reliable and affordable power for all members.
