Hitting the Peak

Winter’s End Means High Demand Resets

It’s a cold day in Southeast Alabama when Wiregrass Electric Cooperative hits peak demand. With cold temperatures still possible in February, cooperative members need to remain vigilant when alerted to possible peak conditions.

Historically, WEC sets its annual peak demand on the coldest day of the year between 6-9 a.m., sometimes from November through February. The cooperative’s coincidental peak demand rate resets annually.

Demand makes up about 60% of the cooperative’s wholesale power costs, driving the rate WEC pays to its wholesale power partner, PowerSouth Energy Cooperative in Andalusia. Peak demand is basically the highest generation capacity needed to provide WEC with wholesale power at any given time.

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

In March, the monthly demand rate members pay will move from $2.50 to $4 per kilowatt.

However, the kilowatt-hour energy rate seen on bills each month will drop to $0.0948 per kWh. That’s an overall drop of 15% since 2024, when WEC adopted a separate demand rate.

Make sure you are signed up to receive alerts by text, email, and phone. Check your account’s alert status via WEC’s mobile app or online on our website. Follow Wiregrass Electric Cooperative on social media to watch for updates there.

“We are giving our members more control over their bill,” WEC Vice President of Member Services and Communication Stevie Sauls says. “If they keep their household’s energy use down during our system’s peak, they can keep their monthly demand rate down. When you combine a lower demand rate with a lower energy charge, members could save money on their electricity bills throughout the year, but they have to take steps to conserve their energy use when we send out those peak demand alerts.”