Demand Billing

What is the difference between kW and kWh?

Kilowatts, or kW, measure how much electricity is being used at one time. Kilowatt-hours, or kWh, measure the total amount of electricity used over time.

One way to understand the difference is to think about filling a swimming pool. The total amount of water delivered is like energy use, while the rate at which the water flows is like demand.

What is a three-part rate?

A three-part rate reflects three components of providing electric service:

  1. The monthly access charge helps cover the cost of maintaining a connection to the electric system.
  2. The energy charge reflects the total amount of electricity used during the month.
  3. The demand charge reflects the greatest amount of electricity the home or business uses at one time during Midland Power’s on-peak periods.
Who approved the new rate?

After several years of careful analysis, Midland Power’s board of directors approved the rate change at its November 2026 meeting.

How can lowering demand benefit all Midland Power members?

Reducing demand during the co-op’s heaviest use periods can help lower Midland Power’s wholesale power costs and delay the need for costly system upgrades. Over time, those savings can support lower energy costs and greater rate stability for members.

How does the new rate make billing fairer?

Homes and businesses that place greater demand on the system require Midland Power to have sufficient power, lines, transformers, and substation equipment to serve that higher load—even when the demand occurs only for a short time.

Under a rate based primarily on total energy use, those costs are spread across the entire membership. A demand charge more closely assigns those costs according to how each member uses the electric system.

How can I see my past demand readings?

Midland Power has listed each member’s peak demand on monthly billing statements since March 2021. You can access past statements through your SmartHub account and review the peak demand shown for each billing period.