What is "Power Supplier Demand?"
Power Supplier Demand on your bill is a monthly one-time charge for the highest recorded demand point in a month. Demand is the highest power consumption need at your location during a month's billing period. Simply stated, if you were to turn every electric appliance and light on that you possibly could for 15 minutes, that would likely be recorded as your highest demand for the month.
Demand kW vs kWh Rate
Kilowatt hours (kWh) = The total amount of energy used in a month
- Example: If a house uses 30kWh per day for 30 days. The total monthly usage is 900kWh.
Demand: Kilowatt (kW) = How much energy was pulled in by multiple appliances, lights, etc. at one time (15min span)
- Example: Your house appliances regularly need 6.4 kW or below to run at the same time daily. However, during the middle of the month a few extra items were turned on at the same time, making the highest need for 8.3 kW that day. Your one-time monthly Power Supplier Demand charge would be that highest recorded amount of 8.3 kW.
Another example, would be if we compared kWh and kW to how a vehicle operates:
- Energy (kWh) would be what is recorded on the odometer - a measurement of total miles.
- Demand (kW) is like your speedometer - measuring the speed at which energy flows. The upcoming Demand charge will be similar to your highest recorded “miles-per-hour.” MJM must build and maintain the electric system so we can make sure you can “drive” as fast as you’d like at any time.
"How can I keep my Demand charge low?"
“Don’t tower your power.” Staggering the use of major appliances is the easiest way to manage your demand charges. When you consistently stagger the use of major appliances so they don’t run at the same time, you can keep your demand low.
Make it easier by utilizing technology that helps you remember to offset energy use like timers, delay start settings, mobile apps, and programmable thermostats.
Electric usage varies among members, depending on household size, appliances and seasons. Seasonal changes are the most common reason members notice a change in their electric bills. Watch your energy use patterns as the seasons change so you won’t be surprised by larger electric bills. Your highest “demand season” may be different from other members depending on your home and appliances.
