How does the residential demand charge relate to the peak?

The residential demand charge is tied to the fixed costs associated with meeting peak demand year-round. Even though technology and energy efficiency have improved, peak demand hit an all-time high on Dec. 24, 2022, which led to higher capacity costs in 2023.

Thanks to demand pricing signals, communication and the participation of members like you, our system saw a lower peak in the winter of 2024. However, demand costs remain high due to factors like inflation, national policy and regulations and other economic conditions.

To ensure reliable service and promote the long-term financial health of our cooperative, we’ve adjusted our rate structure related to demand. Billing for residential demand creates a fairer way to cover a portion of these costs, benefiting all members.