Electric Industry Term: Demand

Things in the electric industry are changing, that is for sure. Technology has brought us LED lighting, home generation systems, and remotely controlled everything, from garage doors to heating systems. And the electric vehicle industry is just getting geared up to hit the USA auto market full speed with new models from every company. There is so much more to come, for sure.

All these new things are going to affect our lives whether we like it or not. It will even affect how and when you purchase electricity. But fear not! Our members will still get the reliable power from their cooperative you've come to expect. Some changes may actually save you money and make your life easier. No, this is not a late-night commercial trying to sell the latest gadget that you didn’t know you needed, but an attempt to explain terms relating to energy delivery, some of which may be important in the future.

Let's start with "power demand:' Demand, as defined by your utility, is the maximum rate of electricity consumption over a billing interval. It is registered in kilowatts (kW), which is different from the kilowatt/hours (kWh) normally seen on an electric bill. Union County Electric measures power demand in 15-minute time increments. There are 4 demand periods in each hour and 24 hours in each day. Add that up and in a 30-day month, you get 2,880 demand periods. When demand is used in billing for electricity, it is done using the highest single demand period registered in a month's span. In other words, one 15-minute period out of the 2,880 possible is used as the billing power demand.

Let's use an example: If you have an air conditioner that draws 4,000 watts, it will register 4 kW during every demand period that it runs. It never gets higher than that, because each period starts at zero, and registers the power demand of what is running. In the next demand period, the demand will again be 4 kW, as long as no more devices are turned on. The same goes for a 4,500- watt electric water heater. It will register 4.5 kW in each period. Now if both the AC and the water heater are running at the same time, the demand of each is cumulative. Together, they will register 8.5 kW in each demand period they run together. If the AC is turned off, the next demand period will then register just the water heater at 4.5 kW. Simply put, the more devices that run at the same time, the higher the registered demand.

This is important because demand for electricity is used to size everything that supplies that energy. This includes the gigantic generators, the wires that carry the energy, and the transformers that reduce it to a usable voltage. This is where size does matter, since generator, transformer, and wire sizes all figure into the cost of electricity, based on demand. This is why demand charges are billed separately in some cases, as they are for Union County Electric. The demand for electricity is a separately billed component on the power bill we pay to East River Electric. So, if the demand for electricity can be managed or leveled out, it lowers the cost to Union County Electric and ultimately, our members.

So, let's get back to changes in the electric industry. Information can be very useful. With the new metering devices and data management systems, members can see their contribution to demand. When members are aware of the demand created by their electric device, say a washing machine, they can, in turn, manage the time at which they use this device. It is then possible to lower the cost of electricity, simply by timing their consumption so it does not coincide with every other washing machine being used. Members that participate by altering their electricity consumption patterns could then purchase electricity at a reduced rate based on the savings they create.

Better yet, technology will eventually make all of this automatic. Members will simply choose their participation level, weighing convenience against cost, to fashion savings that fit their lifestyle.

Union County Electric is not at the point where residential members will fashion anything yet, let alone be billed for demand. However, we are running a small pilot program to see how exactly this could work for a residential member. While we are not ready to roll this program out to the masses, there is a time coming when each member will be able to see their demand for electricity, and know what their home, their camper, or their farm contributes to the power demand on Union County Electric's system. Stay tuned.

Until next month, stay safe and God bless.

Quote of the Month: “Learning never exhausts the mind.”  - Leonardo da Vinci, Artist