What is Demand?

Some of Sawnee EMC's commercial rates use "Demand" as a part of calculating your bill. Demand is the highest period of kilowatts measured that you use during the month. Your monthly kilowatt usage may be 8000 kWh, while your demand may be 25 kilowatts. This means that at some time during the month your building used 25 kilowatts for at least one short period on the way to using 8000 kWh per month.

How is Demand Recorded?
All of Sawnee EMC's commercial meters record demand on a continuous basis each month. Every month the meter reader resets the demand to 0 kWh when your meter is read. The meter begins recording the usage for each 30 minute segment. If you use more kW in the next 30 minutes than you did in the previous 30 then it takes that reading as your demand and continues this process throughout the month. Then when the meter reader reads it again, they will record both the total kilowatts used and the demand.

Why is Demand used in billing?
The peak demand for our system is a determining factor in the cost of power purchased by Sawnee EMC. As our peak demand grows, so does the cost of the electricity for all members. By keeping your demand down, it saves money for you and all other members of the cooperative.

How Can Demand Affect My Bill?
Demand can have a positive or negative effect on your bill. If your rate is demand based, and you have a low demand with a higher monthly kWh usage, you may get a reduction in the price per kilowatt for part of your bill. However if you have a high demand then you may not get the reduction on your price per kilowatt. It is to your advantage to try to keep your demand as low as possible.

When Does a Lower Demand Benefit Me On My Rate?
To find out how a lower demand benefits you on the large commercial rate, click the following:  Click here