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.

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. 

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. The US Department of Energy offers an Appliance Energy Calculator that shows the average wattage ratings for various devices. You can also use our online energy calculators to estimate the cost of running equipment. 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.

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.