Peak Demand Charge FAQ

I can’t help what my system demand is. Why am I being penalized?

There is no penalty for the demand that a member sets: every household using electric service has “demand,” and have always paid for it. Demand charges were bundled with a portion in the energy charge and a portion in the facilities charge. Cloverland measures demand and will itemize the bill separately, giving members the opportunity to observe and control it.

Unbundled charges for demand more fairly distribute the costs of providing service to those members who use large amounts of electricity at one time. In the existing rates, charging more for energy to cover demand costs overcharges the most efficient members and gives that money to members creating higher overall costs for the system.

Cloverland builds and plans its distribution system to meet each member’s system demand needs even when it is not a daily occurrence. Equipment to meet all 34,000+ members’ demand is always on standby and ready to immediately meet any increased need for electricity. We have your electric needs covered day and night as part of our mission.

How can I reduce my system demand?

All households that use electricity create a certain level of demand. The easiest way to reduce demand while meeting household energy consumption requirements is to spread usage throughout the day and night to lower maximum usage during 8 AM - 9 PM. Now is a good time to review household or business processes to determine if it’s possible to perform high-energy-consuming tasks at different times of the day. The prime candidates for energy consumption include electric vehicles charging, shop tools, space heating, clothes dryer, and more.

How much does lighting affect my system demand?

Very little since lighting represents less than 15% of the average household electric bill and it’s possible to lower usage by using LEDs, and of course, turning off lights when not needed.

What affects demand?

Everything with a plug consuming electricity in the home, farm or business at the same time, from a cell phone charging, hairdryer, clothes dryer, tractor heater, electric water heater, etc. affects your demand.

How will the demand affect my bill?

It depends, and each household is different. Members who manage the number of items used at one time may see their bill decrease; other members who use or tend to use or need to use everything at one time may see a slight increase. We understand that for some busy families that simply won’t be possible. You are only billed $0.93 per kilowatt (KW) for the highest demand for the month placed on Cloverland’s system during those critical hours throughout the month.

How much will it cost to charge an electric vehicle under the new rate?

Charging amounts typically happen primarily at home versus at business or other shopping locations but vary from member to member depending on their commuting profile and driving habit. Demand impacts range from 6 kilowatts (Kw) to over 12 kW for faster charging and energy consumption varies from 420 kilowatt-hours (kwh) a month to over 1250 kwh a month in some cases. With the new rates, the cost would depend upon whether the member charged on peak or chose the optional Residential EV Rate. Under the standard rate charging would add as little as $40 per month but could be as high as $130 a month under a high charging on peak (during the hours 8 AM - 9 PM).

Why bill demand?

Cloverland is breaking out demand from the energy usage to provide more equity among members in a rate class. Some members create more demand by using more power at the same time and as a result, it creates a higher demand for electricity. This result has a higher cost than members using a more consistent amount through the peak period.

Due to the pressures of electric vehicle expansion and distributed generation or beneficial electrification in general, the industry, and many utilities are beginning to see a need to move to a 3-part bill for all rate classes, with a 1) demand charge, 2) energy usage charge and a 3) facilities charge.

How does this cost relate to what Cloverland pays for power?

Although Cloverland’s power supply capacity or demand costs vary throughout the month, these capacity costs occur primarily during the on peak hours of 8 AM to 9 PM and most of these costs currently collect in other facility or energy charges.

What is the monthly peak demand?

It is the maximum rate at which your household consumed electricity during the billing month, but only during the peak daily hours (8 AM - 9 PM).