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3 minute read
DOG DAYS OF SUMMER
We’re in the dog days of summer, and you’ll probably hear the phrase “peak alert.” Here’s why.
If you look around your home, you likely have more devices and equipment that require electricity than ever before. Our connected lives are increasingly dependent on more electricity to function. At the same time, as demand for electricity rises, Butler Rural Electric Cooperative must deliver an uninterrupted power supply — regardless of market conditions or other circumstances.
As you would expect based on your own family’s habits, electricity use fluctuates throughout the day based on consumer demand. Butler Rural Electric Cooperative must be able to provide enough electricity to meet the energy needs of all members during times of highest energy use, or “peak hours.” These peak times are typically on the hottest summer days between 2 and 7 p.m.
What you may not know is that electric utilities, including Butler Rural Electric Cooperative, typically pay more for electricity — either from our own generation co-op, Buckeye Power, or from another utility with excess power — during those morning and evening “energy rush hours.” In addition, the demand for electricity is even higher when it’s especially hot outside, when HVAC systems must run longer to cool our homes. We want to avoid setting new peaks because our cost for electricity is based on the price of the five hours of highest demand each year. A new peak means a new higher price. Peak alerts are cost-based and are not an indication that we do not have enough power to meet the needs of our members’ electric use.
If the “peak times” concept is a bit puzzling, here’s an easy way to think about it – it’s similar to a major concert. Costs go up when there is strong demand for tickets (or electricity), and both are subject to the basic economic laws of supply and demand. When a lot of people want the same thing, it’s more expensive. When they don’t, it’s cheaper — like a bargain matinee or an “early bird” special at a restaurant.
Peak alerts are very important. When our members take them seriously, it can help reduce wholesale power costs and keep member rates as low as possible. The wholesale power cost, shown as the generation and transmission portion of your bill, accounts for more than 50% of your electric bill. Controlling peaks helps reduce these charges, which directly impacts your bill.
When we post on social media about a peak alert, we need everyone to pitch in! Helping is easy — during peak periods when the cost to produce and purchase power is higher, we encourage you to take simple steps to save energy, such as turning your thermostat up a few notches and putting off the use of large appliances like dishwashers and clothes dryers until off-peak times.
You can also save energy by plugging electronics and equipment such as computers, printers, and TVs into a power strip, then turning it off at the switch during peak hours. If you have a programmable thermostat, adjust the settings to sync up with off-peak periods. When we all work together to reduce energy use during periods of high electricity demand, we can relieve pressure on the grid and save a little money along the way.
Another benefit of this time-of-use approach to electricity use is that it allows greater control over your bill. Reducing the peak affects the power-supply cost to every co-op member. This has been particularly noticeable as energy costs have risen across the U.S. Collectively, everyone conserving energy and making small changes can truly make a difference.
Taking simple steps to save energy throughout the day and shifting energy-intensive chores to off-peak hours is a smart choice for you and our community. Working together, we can avoid setting a new peak and paying a higher price for electricity.
In June, The American Legion Buckeye Boys State visited Butler Rural Electric Cooperative’s office to learn more about the cooperative business model and the electric utility industry.
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Buckeye Boys State is an eight-day hands-on experience in the operation of the democratic form of government, the organization of political parties, and the shaping of Ohio government.
Founded in 1936, Buckeye Boys State is the largest Boys State program in the nation, with an annual attendance