Peak Watch

Members Asked To Keep Conserving Energy During Peak Times

With peak demand times possible through the end of February, Wiregrass Electric Cooperative encourages members to stay alert.

“We can’t predict when peak demand will happen,” WEC Vice President of Member Services and Communication Stevie Sauls says. “When the possibility of peak demand exists, we alert members and ask them to reduce their electricity use. If we can reduce our energy demand and our wholesale power costs for the next year, everybody benefits.”

Peak demand — the kilowatt measure for the maximum power required at any given time — determines the cooperative’s wholesale power cost, a rate that is recalculated annually. Demand now makes up 60% of the cost, which was $39.6 million in the last budget year. Just 12 years ago, demand accounted for about 50% of the cost of power, and in 2007, it equaled 40% while energy use accounted for the bulk of the yearly cost.

With membership continuing to grow, WEC restructured its rate system in 2024 to recoup demand costs more fairly. Members now pay a monthly demand rate based on electricity use during the system’s annual peak. The goal is to change behavior and lower the cooperative’s costs.

In March, WEC’s demand rate will increase from $2.50 to $4 per kilowatt. If your household uses 8 kW during peak, your monthly demand rate will be $32 (8 x $4 = $32).

The demand rate is 1 of 3 charges detailed on members’ bills. Members also pay a fixed distribution fee, along with a kilowatt-hour energy rate on electricity use for the billing cycle.

To give members more control over what they pay, WEC has lowered the energy rate and will do so again in March, bringing the total energy rate reduction to 15%.

Wiregrass CEO Brad Kimbro says members who cut their electricity demand during peak demand will lower their monthly demand rate. But, combined with a reduced energy charge, those members can actually save money on their electric bill throughout the year.

WEC is a winter-peaking system, and peak demand typically occurs sometime between early November and late February, between 6 and 9 a.m. on the coldest day of the year.

“What we pay for wholesale power is largely driven by that 1 cold day in the winter when capacity is at its peak,” Kimbro says. “Without the capacity to meet the peak demand, somebody is out of power, which we don’t want. That is why it is so helpful to keep the peak as low as possible. Doing so will help the cooperative with its wholesale power cost, and that helps your bill be as low as possible.”

Beat The Peak

Watch for peak demand alerts through text messages, emails, phone calls, and Facebook. Take steps to lower your energy use during peak demand:

  • Use a programmable thermostat to automatically set your heating unit during peak hours. Or lower the temperature of your unit during peak times.
  • Install a timer on your electric water heater to stop it from turning on during peak times. A typical water heater uses 4.5 kW just by switching on.
  • Avoid using other high-energy appliances, like your dishwasher, oven, and laundry washers and dryers. If you must use them, stagger use throughout the day.