Demand charge is based on each member’s highest 30-day demand on the cooperative’s distribution system each month. Demand is measured in kilowatts (kW).
To illustrate how a demand charge can affect an electric bill, let’s look at 2 simple examples:
Example 1:
Running a 20 kW load continuously for 50 hours would result in usage of 1,000 kilowatt hours (kWh) and accrue a demand charge of 20 kW.
20 kW X 50 hours = 1,000 kWh
Demand = 20 kW
Example 2:
Running a 2 kW load for 500 hours would also result in usage of 1,000 kWh but would only accrue a demand of 2 kW.
2 kW X 500 hours = 1,000 kWh
Demand = 2 kW
Both examples use the exact same amount of energy (1,000 kWh) and perform the same amount of work. However, the resulting bill will be very different.
Applying Wasco Electric’s Irrigation rate demand charge of $8.20 per kW and an energy charge of 8.50¢ per kWh to both examples shows the following results:
Bill #1:
20 kW X $8.20 = $164
1,000 kWh X .0850 = $85
Total = $249
Bill #2:
2 kW X $8.20 = $16.40
1,000 kWh X .0850 = $85
Total = $101.40