Let’s work together to hold down power costs

Timing is everything. That’s certainly true when it comes to the price we pay for power. Like gas at the pump, or tickets to an amusement park, prices increase when demand is high. The same is true for various food products, as well. Demand drives prices.

Peak demand for electricity directly affects power costs. That’s because we must have resources available to serve all our members at that moment when demand for electricity is at its highest, even if that “peak” only occurs for a few hours a year.

For instance, we set a record peak demand on Christmas Eve, when everyone’s heating systems were working overtime. The price we pay for power for the next 12 months is partially based on the highest peak of the year, so lowering our peak demand means lowering the cost of wholesale power.

What is 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.

For example: Imagine driving on the interstate. 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 is like the highest recorded “miles-per-hour” speed that month.

Your monthly electric bill includes a line item that shows your monthly demand. That number represents the 15-minute interval during the current billing period when you had the highest demand. You can also see your highest monthly demand by looking at your power meter. Watch for the reading that says “MAX kVa”. You reached that demand when the most electric appliances were running all at once – your heating unit, water heater, dishwasher, dryer, lights, refrigerator, and everything else that uses electricity.

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.

How can you help?

While we work to keep rates as low as possible, there’s a way you can help, as well. You simply join other members in shifting or delaying the times you use electric appliances.

Major appliances used for heating and cooling, cooking, water heating and laundry are your home’s largest energy consumers and have the greatest impact on your overall energy usage and demand. The more appliances or devices you run at the same time, the higher your electricity demand.

Staggering the use of major appliances is the easiest way to manage your demand. Making these shifts in when you use electricity helps reduce the overall demand and helps manage power costs for all our members. The more we can spread demand to avoid big peak periods, the less we have to spend on wholesale power. That saves our members money.

There are a few simple things you can do to lower your demand:

§ Use a smart thermostat. They make it easy to schedule your heating and cooling unit to run at off-peak times of the day. If you don’t have a smart thermostat, you can always adjust your temperature during the coldest (or hottest) part of the day so your unit runs less.

§ Stagger your use of major appliances. Do your best to use major appliances like your washer, dryer, water heater, oven and dishwasher at different times.

§ Use a timer or delay function. This is a great way to make sure appliances like your water heater, dishwasher or pool pump run at different times.

Lowering peak demand demonstrates good stewardship of our resources. By being good stewards, we reap the benefits of managing power costs. When we use energy wisely and manage the demand for power, we help control wholesale power costs.

Reduce peak demand and help keep wholesale power costs low. Finally, a reward for postponing those chores. 

Important Messages

Teachers: Apply for your spot at Empower by 10 at need.org/empower.

High school seniors: Apply for scholarships by 17 at pioneerelectric.com/scholarships.