Last month, I introduced the concept of electric demand and its impact on the cooperative. Beginning in July, you may have noticed a new line item on your electric bill that provides information about your demand usage. Although no charges are associated with your demand, I understand it might raise questions.
The demand information on your bill reflects the highest 30-minute average rate at which you used electricity during the billing period. Demand is measured in kilowatts (kW) and reflects your peak demand — similar to noting the highest speed you reached during a car trip. By understanding your peak demand, you can better manage your electricity usage, potentially lowering the cost of wholesale power to your cooperative and easing the strain on our electric infrastructure.
As our energy needs evolve with electric vehicles, renewable energy systems, battery storage and more, the infrastructure required to meet those needs also changes. By monitoring and providing demand information, we aim to accomplish two goals: to educate members by creating awareness of peak demand and to help members understand that when and how they use electricity affects the efficiency, reliability, and cost of operating our electric system.
You may have guessed that your cooperative is considering adding demand charges in the future. Some members with larger transformers are already paying for demand each month. Demand charges are one way for your cooperative to fairly recover costs while giving members another tool to manage their electrical usage.
The cooperative is currently recovering demand costs through the existing rate structure. Central Electric is a non-profit electric cooperative, so rate adjustments are only used when necessary to cover increasing costs.
By paying attention to your demand usage, you can take steps to reduce it. Try to spread out the use of high-energy appliances, such as laundry machines or electric stoves, to different times of the day instead of running them simultaneously. Investing in energy-efficient appliances and lighting can reduce both energy consumption and demand. Be aware of your family’s energy habits and look for patterns to identify opportunities to reduce peak demand.
Electricity has remained relatively cost-stable, although your cooperative is expecting higher wholesale costs for electricity in 2025. This is no surprise as inflation, labor, interest and federal regulations have increased significantly for our industry over the past two years.
Despite increasing costs, South Dakotans enjoy some of the lowest-cost electricity in the nation. Electricity provides benefits that we often take for granted. It is vital in protecting our property, and it can entertain us and keep us comfortable in both our homes and workplaces.
As a member-owned cooperative, Central Electric does everything in its power to ensure your costs stay reasonable and electricity remains a great value. Our goal is to provide reliable, affordable and sustainable electricity. By working together, we can manage our energy resources more effectively and ensure that we all benefit from a robust and resilient power system.
Thank you for your continued support and cooperation. If you have any questions or need further assistance, please contact your cooperative. Until next month, stay safe!