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Understanding Demand

Where did the demand come from?

Demand has always been part of your electric bill. It just wasn't broken out so you could see it. In the past the metering required to measure demand on a house by house basis was not affordable. With the new metering technology that we now have, you can do as our commercial accounts have done for years and take advantage of reducing the demand during critical peak times and save on your electric bill.

How was the $5.10 for demand determined?

Your new bill shows you more of the components of your electric usage than we have done in the past. While you always paid for demand, you couldn't tell how much. The $5.10 was determined like we do all of the components of the bill. We performed a cost of service study that looks at each aspect of providing you electricity and then determined the appropriate charge for each.

How do we read the demand?

Demand is the highest total kWh's used during a 1 hour period between 3 and 6 p.m.

New time period for peak demand?

Over the past couple of months we have been communicating to you the change in the new peak demand period. The new peak demand period went into effect June 1, 2016. The new peak demand period will begin at 3 p.m. and end at 6 p.m. If you have been trying to conserve during the peak demand period, the new hours will give you the opportunity to begin using your appliances or lowering your thermostat any time after 6 p.m. instead of having to wait until after 8 p.m. I would like to take some time now to explain our rate and how it is calculated for those that are new to Butler REC and this will serve as a good reminder for those who have been with us for several years.

What is demand?

Electric 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, a typical hand iron requires, or demands, 1,000 watts of power. If that iron is used for two hours it consumes 2,000 watt-hour or 2 kilowatt-hours of energy (1,000 watts times 2 hours equals 2,000 watt-hours). Using multiple appliances at the same time increases your demand. A typical dishwasher has a demand of 1,200 watts. If you used the dishwasher at the same time as the hand iron, the total demand for these two appliances would be 1,000 watts plus 1,200 watts or 2,000 watts. If instead you choose to operate these at seperate times, the maximum demand for these two appliances would only be 1,200 watts.

What can I do to lower my bill?

Most members can lower their bill by reducing their peak period demand starting at 3 p.m. and ending at 6 p.m. Simply put, the peak demand period is typically when your air conditioner has to work the hardest.Operating appliances such as your dishwasher, oven, washer and dryer outside of these periods will help to lower your demand charge. If we can reduce this demand, we can reduce our annual cost of purchased power. This reduction in demand will help to keep future costs and rates down as well as delay the need to build new generating plants. Below is an example of how a July bill for 1,291 kWh would be calculated. The billing demand will be your highest demand during the peak demand period (highlighted in yellow). If you have and questions, please call 800-464-0060.

New Time Frame Example

How is Billing Demand Determined?

For the calendar months of July and August, the billing demand will be the highest hourly demand during the peak demand period. For the calendar months of September through June, the billing demand will be the greater of:

  • 70% of the highest billing demand from the prior July/August billing.

or

  • The highest hourly demand during the peak demand period of the current calendar month.

Why doesn't the demand coincide with my billing cycle?

Demand is based on the calendar month because that is how our power supplier bills us and it is higher during the summer months. So to be fair to everyone we use the same demand timeframe regardless of your billing cycle.

How to read a Butler REC Billing Statement

 

 

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