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.
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.
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.
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.
It can. Your demand charge is based on the highest qualifying 15-minute interval of the month. Moving one major electrical load out of that interval may reduce your billed demand.