Peak Demand Charge
New technologies are changing the way residential utility members consume energy. In response, many utilities across the country are changing the way they charge for residential power to include a component called “demand.” The peak demand charge is not actually a new charge, it has always been embedded in the energy rate. REC is simply separating the peak demand charge from the energy charge. This demand charge collects costs more accurately and fairly from residential members. This will ensure that you are not supplementing someone else’s energy requirements and all members are paying according to their energy needs. It also gives members more control over their power bill because they can reduce their demand by shifting usage to off-peak hours.
Understanding Demand
- Electricity that is delivered to your home has to be generated at the same exact time you’re using it.
- Many people often use electricity at the same time during certain times of day (getting ready for school or work in the morning, and preparing meals or doing laundry in the evening.)
- During these “peak” times of electricity use, it is costing REC more to purchase electricity to keep up with the demand from usage.
- This extra cost is then passed back to members on their bill called a “Peak Demand Charge.”
- Demand charges are based on the maximum amount of energy consumed at a certain time period (peak hours.)
Reduce Your Demand
You can help reduce your demand charges by making simple and easy adjustments throughout the day.
- Use programmable thermostats to reduce heating and air conditioning usage during peak hours.
- Try not to use major appliances, like clothes dryers and dishwashers, during peak hours.
- If you are using major appliances during peak hours, try not to run them all at the same time.
