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Demand Rate

Demand rate effective with March 2022 energy use (reflected on April 2022 bills)

All general service, commercial small power, and large and industrial power rate classes are billed under a three-part (demand) rate comprising a Grid Connectivity charge, Energy Charge, and Demand Charge component.

What is demand?  

Demand refers to the maximum amount of electrical power that is consumed at one time in a billing period. This is different from energy, which is the amount of power used over a period of time.

The Demand Charge line item that appears on your monthly bill represents the highest amount of electricity used – measured in kilowatts (kW) – at one time during that billing month.

The Demand charge is designed to help pay for some of the co-op’s distribution demand costs. What are these costs? They are costs incurred in building out our distribution system so that it can reliably provide all of the power our members need when their need for power is the greatest. The biggest cost drivers are substations, distribution lines, and transformers. In 2025 Grand Valley Power wrapped up a $2.2 million upgrade to our Highline Substation to meet growing member demand. Upgrades to various other distribution lines and substations will be required in the future. We need to have a way to pay for these improvements that is not tied to kilowatt hour sales. That’s why cooperatives like GVP include a Distribution Demand Charge as part of their rates. 

View tariff sheets.

If you're wondering about the "demand charge" line item on your electric bill, you're not alone. In this video, we use simple real-life examples of a small business and a large business and how you can control your energy demand.

How to Control Demand and Save

Demand Rate Frequently Asked Questions

What is demand?

Demand is the amount of power needed to supply every electrical device running in your home or business at one time. It is the highest amount of electricity - measured in kilowatts (kW) - that a household or business uses at one time in a billing period.

To ensure that you receive the electricity you need when you need it, cooperatives like Grand Valley Power must build their distribution system to supply all the electricity that its consumers demand at one time. In other words, the distribution system must be "sized" to support the maximum amount of electricity or "demand" placed on it by consumers.

 

Why does GVP have a demand charge?

Demand has historically been a part of every electric bill! Every household or business using electric service creates “demand.”

Cooperatives like Grand Valley Power must build their distribution system to supply all the electricity that its consumers demand at one time. In other words, the distribution system must be "sized" to support the maximum amount of electricity or "demand" placed on it by consumers. Building the system to support this demand comes with a cost.

Traditionally, the cost of demand was included and paid for as part of each member's kilowatt-hour (kWh) or energy charges. These charges were bundled together. But with affordable and advanced metering technology, Grand Valley Power and other utilities are able to measure demand and bill it separately, giving members the opportunity to control it. This additional information allows us to separate the various components of your electric bill and charge members more fairly for the two largest drivers of electric consumption: your impact on the electric system (demand) and the amount of power you consume (energy use).

Unbundled charges for demand more fairly distribute the costs of providing service to those members who put more demand on the distribution system by using large amounts of electricity at one time. 

How can I control or lower my demand?

The more appliances, equipment, or devices you run at the same time, the higher your electricity demand.

Depending on your home or business, your demand will vary, and your highest demand season may be different from other consumers.

  • In the summer months your demand may be higher due to refrigerated air conditioning, freezers, clothes dryers, pumps, fountains, motors, power tools, or compressors.
  • In the winter demand is driven by electric heat or space heaters, stock tank heaters, crushers, and increased use of lighting. 

Understanding how many watts your appliances and equipment consume at one time will help you take more control of your energy bill. Listings of common wattage ratings can be found online, and you can estimate costs of running equipment by using our online energy calculators. Remember: 1,000 watts = 1 kilowatt (kW).

Using major appliances one at a time, or staggering their use, is the easiest way to manage energy and demand charges. When you consistently stagger the use of major appliances or equipment so they don’t run simultaneously, you can keep your demand low.

  • Make it easier by using technology that helps you remember to offset energy use: timers, delay-start settings, mobile apps and programmable thermostats.
  • Evaluate your operations to even out or lower demand. Consider shifting energy use to different time periods, staggering the use of heavy equipment to eliminate spikes in demand, and using equipment at a lower intensity.
How do I know demand what my demand is and when it occurs?

Your electric bill includes your total demand. The Demand Charge reflects your highest amount of energy consumption during that billing period, which is measured in kilowatts (kW). Line items associated with both your Demand and Energy consumption reflect the total measured usage and total cost of each component. 

SmartHub, our online account management portal and app offers you a look at your past and current energy use. Log in anytime to view your energy and demand on an easy-to-read platform. Learn how to register for your SmartHub online account or download the free app. 

 

Energy Usage Explorer example

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  • My Co-op
    • News
    • Annual Meeting and Reports
    • Board Meetings and Agendas
    • Director Election
    • Bylaws
    • WARN Grant
  • My Hometown
    • Youth Leadership Programs
    • Scholarship Program
    • Hometown Partnerships
    • Colorado Legislative Directory
  • Member Hub
    • Manage My Account
      • Service Requests
      • SmartHub
      • Other Services
    • Payment Options
      • Shared Savings
      • Ways to Pay
      • Energy Assistance
    • Billing Programs
      • PowerMyWay Prepay Program
      • Budget Billing
      • E-Bill (Paperless Billing)
    • Service Information
      • New Member Information
      • Rates
        • 2025 Rate Changes
      • Time-of-Use Rate
      • Demand Rate
      • Service Fees and Regulations
      • Understanding Your Bill
    • Member Benefits
      • Member Capital and CashBack Credits
  • Energy Solutions
    • Renewable Energy
      • Solar
      • Renewable Energy Standard (RES)
    • Resources and Tools
      • Energy Calculators
      • Home Energy Adventure
      • Ways to Save
        • Summer Savings
    • Electric Vehicles
      • Electric Vehicle Center
      • Electric Vehicle Rate
  • Safety Resources
    • Safety Resources
      • Cybersecurity and Scams
      • Power Outage Safety
      • Safe Kids
      • Safe Outdoors
    • Wildfire Safety
      • Wildfire Mitigation and Safety
  • Outage Center
  • About GVP
    • Co-op Principles
    • Our History
    • Our Mission
    • Power Supply
    • Service Territory
    • Board of Directors
    • Executive Staff
    • Career Opportunities
    • Contact Us