Peak Attention

Your Role In Power Demand & Costs

Electricity is a resource unlike any other. It must be produced at the exact moment it’s needed — it can’t be stored like water in a tank or gas in a car. This unique trait requires the electric grid to maintain a delicate balance between supply and demand, minute by minute. Yet our demand for electricity isn't constant. It rises and falls throughout the day and changes with the seasons.

Take cold winter mornings, for example. As heating systems kick in to keep our homes warm, electricity demand spikes. To meet this surge, power suppliers must be ready to ramp up production, and unfortunately, their resources often operate below capacity. This readiness to supply power during peak demand comes at a higher cost — what we call peak demand hours.

For Wiregrass Electric Cooperative members, these peak demand hours occur from 6 a.m. through 9 a.m. during the winter months of November through February. The coldest morning will likely set the highest peak of the year. That moment of highest demand, or “peak,” determines the price we pay for power from our wholesale supplier, PowerSouth Energy Cooperative, for the entire next year.

Demand vs. Consumption

Peak demand has a greater impact on energy prices than the total amount of electricity consumed. This is due to the higher costs associated with meeting the maximum level of demand and ensuring grid reliability.

Total consumption is measured in kilowatt-hours or kWh, representing the amount of electricity you use over time. In contrast, demand refers to the rate at which you use electricity at a specific moment, measured in kilowatts or kW. Until this last year, the costs associated with peak demand were embedded within your overall energy charges. However, not all kWh of electricity are created equal. A kWh used at 7 a.m. on a freezing January morning costs much more to produce than a kWh used at 4 p.m. on a mild day in September.

Peak Response

In the past, meeting higher demand often meant building new power plants and expanding infrastructure — a costly solution that drives up costs for everyone. But there’s a smarter way: demand response.

Thanks to advanced metering technology, we can measure and bill for peak demand separately from total energy usage. This approach provides a clearer and fairer way to reflect the true cost of providing electricity. The cooperative business model works best when everyone pays their fair share of the costs to keep the delivery system strong. This means that those who contribute more to peak demand bear a proportionate share of the costs associated with meeting that demand. This helps keep overall rates fair for everyone.

And here’s the good news: the base energy rate, or kWh rate, is decreasing by about 10.5%. This reduction reflects our commitment to providing affordable electricity while maintaining a reliable power supply.

By paying attention to peak hours and adjusting your energy habits accordingly, you can lower your household’s demand and help keep rates as low as possible.

Quick Guide to the Residential Demand Charge

Starting in March, residential members will incur a $2.50 demand charge per kilowatt used on their monthly bills.

When is it measured? From 6 a.m. to 9 a.m. on the day when WEC experiences its highest demand, in 1 of the winter months: November, December, January, or February.

How do we determine the coincidental peak day? It’s the day we reach our highest energy demand, aligning with our wholesale power provider, Power-South Energy Cooperative. We won’t know the exact day until after the winter months — and neither will you — so it’s best to be mindful throughout the season.

Why 6 a.m. to 9 a.m.? Cold weather increases heating needs, leading to higher energy use. Weather events like cold fronts can push demand even higher, affecting overall costs.

How does it affect your bill? Your demand charge will appear on your bill starting in March 2025 and will remain consistent each month until it’s reassessed the next year. This provides a stable charge based on your peak demand during the identified period. For instance, if your peak demand was 10 kW, your monthly demand charge would be 10 kW multiplied by $2.5, equals to $25.

Demand Tip

Time Your Water Heater

Your water heater switches on to maintain the temperature you have it set to, even when you are not using it. A typical electric water heater can demand around 4.5 kW to 5.5 kW when it’s running. To reduce this demand during peak hours, consider investing in a water heater timer. This device can turn off your water heater from 6 a.m. to 9 a.m., helping you lower your demand.

Your Role. Your Power. Your Costs.

Cutting your peak demand can help cut your energy bill. It’s in your control. For a closer look at electric demand and what it means for you, visit our FAQ page. Stay tuned — we’ll share more tips to help you manage your electric demand effectively throughout this season.