Wiregrass Electric Cooperative (WEC) is devoted to providing you with the most affordable, reliable energy possible.
At times, achieving that goal means making necessary, practical billing changes. Soon, you will see a new $6 fixed residential demand charge on your monthly bill.
What is this charge, and what does it mean for you? Simply put, it’s a small fee that accounts for the minimum demand of at least 3 kW that each residential meter places on the power grid.
What Does this Charge Mean?
First, it’s important to understand a key part of the equation that determines your bill. We purchase wholesale power from PowerSouth Energy Cooperative, and the peak demand on our system is a contributing factor that determines the price we pay for that electricity.
The term “peak demand” refers to our highest capacity need — the maximum amount of power WEC must secure at any given moment. This peak consistently occurs from 6 a.m. to 9 a.m. during the winter months. It’s a fixed cost, and capacity needs to be there or the power isn’t available for homes and businesses.
Historically, we’ve never billed residential demand. Costs associated with this demand, making up about 61% of our wholesale power bill, have been recovered through the kilowatt-per-hour rate. But with advancements in metering and billing technology, we can now bill for residential demand more accurately, while also educating members about the cost implications tied to these peak demand periods.
Moving forward, considering factors like the nearly universal 3-kW demand on residential meters on our peak during winter mornings, a fixed demand charge for residential accounts just makes sense. It’s a fairer way to recoup demand costs from our wholesale power provider.
The $6 fixed charge, based on the minimum demand for residential meters, will help create a more sustainable, equitable rate structure, and account for some of the costs of supplying electricity during periods of peak demand.
Why is the Charge Needed?
Unusually cold weather has led to instances of amplified peak power demand. It’s the simultaneous use of energy across all homes that creates this demand spike, or highest capacity need, on our power grid, which, in turn, raises our fixed wholesale power costs year-round.
Coupled with inflationary pressures, these factors make it necessary for WEC to begin billing for demand for residential accounts. This fixed fee helps WEC recover some of the expenses tied to peak demand periods.
Benefits of this Approach
Fairness — This charge aligns more closely with members’ actual contributions to peak demand costs.
Reliability — During WEC’s peak demand times, most residential meters register a demand of at least 3 kW. The fixed demand charge assists WEC in recouping some of these demand-related costs, facilitating ongoing investment in infrastructure and resources to ensure reliable service.
Transparency — By bringing attention to peak demand costs, we encourage members to use electricity more efficiently during high-demand windows during winter months (November, December, January, and February between the hours of 6 a.m. and 9 a.m.). Reducing the overall demand for power during these times contributes to the long-term affordability of our power services.
WEC will begin assessing this fixed demand charge to residential accounts in October.
We strongly believe this change is necessary to keep providing you with the best possible service. As always, we’re here to answer any questions you might have about your bill. We greatly appreciate your understanding and continued support.