When you flip a switch, plug in a device or push the start button on an appliance, you consume energy — something many take for granted unless something goes wrong. However, there’s an ongoing tug of war behind your meter, a delicate balancing act between energy and capacity. Understanding this can help you manage your bills and contribute to a more efficient power grid.
Energy is the electricity you consume — what powers your TV, heats your home and lights your way. Capacity, meanwhile, measures the maximum level of electricity that our power grid can handle safely. It’s not just about the grid’s limitations — it also serves as a measure of demand.
Demand for energy fluctuates not only seasonally — in high heating or cooling seasons — but on a daily cycle, increasing during times like the morning rush to make coffee and toast and prepare for the day ahead.
For Wiregrass Electric Cooperative’s system, our peak demand reliably occurs between 6-9 a.m. during the winter months. During these hours, members consume large amounts of electricity in a short period of time. Our system is well-equipped for these demands. However, the moment of highest demand within this window directly impacts our wholesale power costs. Managing this peak effectively helps us control costs.
Modern Solutions
When there’s a need for more capacity, the answer is usually building costly new power plants and transmission lines — and that drives up everyone’s costs. But there are other ways to spur long-lasting and effective change.
Today, demand response is a tool to alleviate the capacity problem. When members adjust their use of electricity during periods of peak demand, they relieve stress on the power grid and improve its efficiency. Flattening this peak reduces WEC’s overall wholesale power costs and helps keep future rates as low as possible.
Your Role In Managing Demand
In October, residential members probably noticed a $6 fixed demand charge on their bill. This charge equates to a 3-kW demand — a minimum value for those meters during peak hours in colder months. This rate is backed by precise data collected through advanced metering technology.
Now, we’re moving to a rate tied to each household’s actual demand during our highest coincidental peak with PowerSouth. The goal here is straightforward: encourage each member to consider when and how much energy they’re using, and how that affects the entire system. By making a few changes to your energy use habits, especially during peak hours, we can mitigate future capacity costs and reduce our overall wholesale power expenditures.
So when you manage your energy demand wisely, you’re taking control of your costs and contributing to the greater good. WEC is committed to doing our part, and we’re here to help you do yours.
Timing Is Everything
Being extra mindful of when and how you use electricity could translate to savings all year long. Your household’s electric use during these key “red zone” hours and months will affect potential excess demand charges on your monthly electric bill. So, make smart choices about both the timing and intensity of your electric use. Keep a close eye on both the clock and the calendar.