Effective October 2025, there will be a new line added to your bill labeled “demand.” While our irrigation and large commercial customers have been familiar with demand charges for years, it’s important for residential and small commercial customers to understand demand and related costs due to changes in the electrical grid. You may have heard us talk about the “demand response program” and the importance of load management. But what exactly is “demand” when it comes to electricity?
Simply put, demand is like a speedometer.
- Get in the driver’s seat of your car for a moment. Energy (kWh) would be what is recorded on your car’s odometer – a measurement of total miles. Demand (kW) is like your speedometer – measuring the speed at which the energy flows.
- The demand reading is like the highest recorded “miles-per-hour” speed for that month.
Think of the electrical grid like a freeway.
- It has to be built to accommodate the largest amount of traffic it could see at one time even if there are only a few cars using it most of the time. During “high-traffic” or high-demand times, energy is more expensive.
- By spreading out your electricity use throughout the day and evenings, you can help the District save on high-demand charges. Those savings keep rates lower and ensure a more reliable and balanced grid for everyone.
Monitor and view demand in SmartHub
- Login to SmartHub
- Click on Usage/Usage Explorer
- Change Usage Type to kWh and Demand (kW)
- The dark line will show your demand over the green columns that show your energy (kWh) usage
Demand FAQ
Why Add a Demand Charge?
A cost-of-service study showed that we need to better match the cost of peak usage with peak power costs on the grid. The buildout of solar and wind energy can cause shortages in available power when the wind isn’t blowing and the sun isn’t shining. When a power supply and demand imbalance occurs, Perennial has to pay for power.
The addition of a demand charge reflects the way your district pays for wholesale power. A demand charge accounts for these higher grid costs during times of peak demand, and this change will better align customer rates with wholesale power costs.
What is Demand and How am I Charged?
The actual demand amount charged on your bill will be the highest demand for your service over a 15-minute period during the billing month.
Demand, measured in kilowatts (kW), is the rate at which power is consumed. 1 kW is equivalent to 1,000 watts. Energy, on the other hand, is measured in kilowatt-hours (kWh) and represents the total amount of electricity consumed over the billing period.
Demand charges are calculated using the single highest 15-minute interval of power consumption over the billing cycle multiplied by the rate.
The average residential demand for Perennial customers is 15 kW. For example, on a residential rate, the demand charge would be $0.50 x 15 kW = $7.50 demand charge for the month.
How Can I Track My Demand?
You can track your demand in several ways.
- You can view your demand in SmartHub (both the mobile app and desktop version). Under Usage Settings, change Usage Type to [kWh and Demand kW], and a line will appear to show your demand.
- Your monthly demand is shown on your electric bill in the Account Detail section.
How Can I Lower My Demand?
The simplest way to lower demand is to spread out the use of major appliances, such as an electric oven, dryer, washing machine, or air conditioning, across separate 15-minute periods throughout the day. By not using too many high-power appliances at once, you will minimize your demand.
