Understanding Demand

Electricity is generated based on the real-time demand of those who consume it.

'Peak demand' occurs when the need for electricity is highest. For us, this is typically during the evening when families return home, cook dinner, and use appliances. Weather can also play a big factor in the demand for energy. High demand generally occurs on hot, humid days in the summer or extreme cold days in the winter. Using electricity during these peak demand periods costs more because more generation is required.

Our peak demand periods are typically from 2:00 - 6:00 p.m. in the summer and 5:00 - 8:00 p.m. in the winter.

Demand FAQs

How Demand Charges Work

Changing Energy Use Patterns = New Demand Patterns

The way we use electricity has changed dramatically over the past several decades. As the electrical grid expanded in the 1950s, consumers primarily used electricity for lighting, small appliances, refrigeration, and farm equipment. Today, homes are more than twice the size they were then, with more electronic devices, and widespread use of air conditioning. The same is true for commercial and industrial facilities. As our lives and businesses have evolved, the demand placed on the grid has shifted from basic lighting and equipment to cooling systems, technology, and automated processes.

Why does this matter? Electric utilities must build and maintain a system capable of serving everyone’s highest simultaneous demand – not just their total energy use. We are not only using more electricity, but we are also changing when and how we use it. Air conditioning drives higher demand during the hottest days of the year. The growing adoption of electric vehicles has also added new demand to the system, which is why we incentivize overnight charging (when demand is lower) through special rates.

At PEC, we are adapting to these changing energy needs by strengthening our electric system, investing in infrastructure, and offering energy management programs, such as our Power Down for Energy Conservation. By working together to manage demand wisely, we can continue to provide safe, reliable, and affordable electric service our members depend on every day.

Demand FAQs

To a consumer, demand is the amount of power needed to supply every electrical device running in your home or business at a specific point in time. Another way to think about it is: if you run your laundry, dishwasher, and oven all at the same time, you're placing a much higher demand on the electrical grid at that moment than if you spread those activities out over time. This is true whether it's home appliances or equipment used on a farm or business only during certain times of the year.

The example below may help clarify the difference between energy consumption (kWh) and demand (kW). You will see that while the consumption (usage) is the same in both examples, the demand is greater in the example on the right.

Utilities are required by law to ensure they always have the ability to meet consumer demand. Having capacity readily available to meet the peak demand on the grid at all times requires significant investments in generation facilities and grid infrastructure.

This cost is spread across consumers (i.e. you) who may only occasionally need this capacity to meet their building operations (likely just a few hours per year). To remain reliable in serving you with the energy your building needs, the utility must be prepared to meet the highest cumulative peak demand.

Install energy-efficient equipment at your home or business.
Downsize your equipment to fit the job such as tools/equipment with less horsepower.
Run home appliances at different times of the day rather than stacking activities. For example, instead of running your laundry, dishwasher, and oven all at the same time - spread it out so they don't run simultaneously.
If you can, start equipment/machines at different times by waiting at least 15-minutes between each start-up.
1. For example, if you were to simultaneously operate a machine that requires 20 kW of power along with a machine that requires 50 kW, the two machines would be responsible for 70 kW on the demand meter. However, if you were to alternately operate these machines, the maximum demand reading from the two machines would only be 50 kW, because the 20-kW machine only operates when the 50 kW unit is off and, as previously mentioned, the meter only stores the highest, or “peak,” demand. With interlocks and controlling devices, it can be easy to operate some equipment this way. There are many ways to manage demand, ranging from manual controls and time clocks to sophisticated automatic units that program and control buildings and processes for large commercial/industrial loads.

The Cooperative offers energy consulting, as well as on-site energy audits. Energy audits are performed by trained professionals, who help identify where a building or facility uses energy and how that energy may be used more efficiently.

If you would like more information on energy audits click below or contact member services at (800) 214-2694.

Energy Audits

ACSI Survey:

Understanding Demand

Changing Energy Use Patterns = New Demand Patterns

Demand FAQs

How Demand Charges Work

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ACSI Survey:

Changing Energy Use Patterns = New Demand Patterns

Demand FAQs

What is demand (kW)?

Why does the utility bill for demand (kW)?

How is demand (kW) billed?

How can a consumer reduce demand (kW) on the electrical system and lessen charges on their electric bill?

Are there any services the utility offers to help in finding ways to reduce demand?

How Demand Charges Work