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what is demand?
Demand is the amount of energy your home uses at any given time​

how plans with peak usage demand charges work
​Instead of a 2-part structure that includes the service charges and the energy you used, a service plan with a peak usage demand charge is a 3-part structure that includes the service charges, energy you used and a peak usage demand charge.

2-part
                                          
3-part
2-part

                                           3-part

Service Charges: fixed account charges

Energy Use Charge: variable, depending
on your energy use, on-peak and off-peak
                                                Peak Usage Demand Charge: variable
charge for your highest one hour of
energy use during on-peak hours
2-part Plans:
Standard Plan
Time Advantage Plans
                                                3-part Plans:
Combined Advantage Plan

how the peak usage demand charge is calculated
​Your peak usage demand is the one hour of the month when your energy used during on-peak hours, Monday - Friday is at its highest. We then average the usage for that one hour and that is the kW we use to calculate your monthly peak usage demand charge.

Let's look at an example of two families — with identical appliances — who have different peak usage demand based on how many major appliances they're using at the same time, for one hour,
during on-peak hours, Monday - Friday.

The Lara family, who puts a priority on comfort and
convenience, comes home
from work and during
one on-peak hour:

  • Sets their AC at 75
  • Cooks dinner
  • Starts a few loads of laundry
  • Runs their pool pump
 
                                                                 
The Smith family, who is more
concerned with saving money,
comes home from work and
during one on-peak hour:

  • Sets their AC at 75
  • Cooks dinner
Then during off-peak hours they:

  • Start a few loads of laundry
  • Run their pool pump
 
                                                                 
Examples are based on 1,800 sq. ft. homes during a typical summer evening. Kilowatt (kW) numbers are based on typical use during one hour during on-peak hours, Monday-Friday.
 
Since the Smith family chose to not run their electric dryer and pool pump during the same hour they were running their AC and oven during an on-peak hour and ran them during off-peak hours instead, their peak usage demand is lower than the Lara family's and their peak usage demand charge will be lower as well.
 
 
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