Demand is the rate at which electricity is consumed, measured in kilowatts (kW). Members will be charged a demand fee for the highest thirty-minute period of electric consumption within their monthly billing cycle. A demand charge ensures that members contributing to peak demand pay their share of the demand costs.
Demand Charge
To reduce your demand, consider adjusting your appliance usage to level your load and spread out the use of major appliances throughout the day, rather than running them at the same time. Using multiple appliances at the same time will increase your demand usage and the demand charge on your monthly bill.
By charging demand on residential accounts, we can ensure members with lower demand are not subsidizing those with higher demand usage. This move aligns with industry trends, as more utilities are shifting toward a three-part billing structure that includes energy usage, demand, and a facilities charge, like how we are billed by our power supplier, the Bonneville Power Administration.
MEC measures demand in 30-minute intervals. The highest demand (kW) recorded sets the member’s billed demand for that billing cycle. Demand is reset at the start of each billing cycle.
For example, if your peak demand during the month was 10 kW with the demand charge rate of $1.25 per kW, your demand charge for that month would be $12.50.
The average residential household typically generates a monthly demand charge of 9.75 kW. Under the new rate structure, this residential household would be charged $12.19 ($1.25 x 9.75 kW) for their demand usage.
MEC members are encouraged to use their SmartHub account to see when their energy use increases and consider what electric devices are in use during those times. The best way to reduce demand is by spreading out the use of those items in your home.
For example, starting the laundry and the dishwasher at the same time you start preheating the oven creates high energy use and can peak demand. Instead, run your dishwasher at night when everyone has gone to bed, cook with an air fryer instead of the oven, and don’t start your dryer at the same time you start dinner.
By spreading out your common household chores rather than multitasking, you can lower your demand and potentially save money on your energy bill.
Check out our step-by-step instructions on how to monitor your energy usage and demand with SmartHub, available on both desktop and mobile devices:
Using solar energy can reduce the energy charge, but solar is not an effective way to reduce demand. For example, solar typically generates less during the winter months, while your heating system is working the most. Solar will not offset your demand throughout the year.