Starting in January 2024, Southside Electric Cooperative will change its demand billing rate structure; however, most members will see little, if any, change in their monthly electric bills.
The power you use any point in time requires specifically sized equipment to carry those electrons. The more homes and businesses that are using that power at once the larger the SEC substation, poles, transformers, and equipment needed to reliably deliver and maintain the system.
Historically, electricity at home has been solely based on how much we use. This change separates the demand component from the historical consumption price that we have known for so long. New metering technology has given utilities the ability to recover their costs in alignment with how those costs are incurred.
Frequently Asked Questions
Demand is the highest amount of electricity used at any one time. Demand is instantaneous use at a given moment.
For example, the more appliances being used all at once, the higher the demand for the electrical system. Using the electric oven, washing machine, clothes dryer, microwave, and space heater at one time creates greater demand than only using the oven and washing machine at once.
As your power provider, SEC must meet members' demands for electricity. SEC must be ready for the fluctuations in demand, including the highest peaks. The demand billing rate recovers our cost to make power available to you at any given point during the day. In order to recover those costs fairly, we apply the rate individually, based on the maximum amount of power you use at one time during the month.
No, SEC has been billing for demand since January 2020. This is a restructuring of demand billing. The new change allows SEC to more accurately allocate its expenses based on how they are incurred by the Cooperative. At the same time, the billing change allows the Cooperative to most equitably charge members based on their demands on the system.
No. SEC will not collect any additional revenue due to this restructuring. This is a revenue-neutral change for the Cooperative.
Most members will not see an increase or any change in their monthly bills. Some may see a decrease. A small number of members, estimated at 600 of the roughly 48,000, who place a high demand on the system, although they may not use a great amount of electricity, will see an increase in their bills.
The amount of the increase depends on members' demands on the system, and it is something those members can control. Think back to the example of turning on five appliances at once. By only switching on the electric stove and washing machine at the same time, the member can decrease demand and reduce any increase in the monthly electric bill. Members will be billed on the highest demand for the month. That means members can reset their power demand each month.
On your billing statement, it is listed under meter reading information as kW (kilowatts). You can also access your demand by logging into your online account.
Be familiar with your home's biggest electricity users, like the oven, dishwasher, clothes dryer, and space heater. Then, make changes when you use those appliances that will cut your demand for electricity.
Demand is measured in kilowatts (kW). 1 kW is equivalent to 1,000 watts. For example, a 1,500-watt space heater would equate to 1.5 kW (1500/1000 = 1.5). The demand charge reflected on your billing statement is the total number of watts consumed at one time during the month.
Example
At 6:00 PM in the Davis household the following appliances are running at one time.
- Air conditioner 4,000 watts – 4 kW
- Clothes dryer 3,500 watts – 3.5 kW
- Washing machine 800 watts - .80 kW
- Electric oven and range 3,900 watts – 3.9 kW
- Dishwasher 1,800 watts – 1.8 kW
- Television 400 watts - .40 kW
- Refrigerator 800 watts - .80 kW
- Electric Fireplace 1,500 watts – 1.5 kW
Total Demand (kW) = 16.70 kW
Making minor changes, like starting the dishwasher after dinner and running the laundry when the dishwasher is done, staggers your use and lowers your demand.
- Air conditioner 4,000 watts – 4 kW
Clothes dryer 3,500 watts – 3.5 kWWashing machine 800 watts - .80 kW- Electric oven and range 3,900 watts – 3.9 kW
Dishwasher 1,800 watts – 1.8 kW- Television 400 watts - .40 kW
- Refrigerator 800 watts - .80 kW
- Electric Fireplace 1,500 watts – 1.5 kW
Total Demand (kW) = 10.6 kW