The demand charge, and how to reduce it

To maintain the grid and deliver reliable power during times when our members typically consume the most energy, CORE applies a demand charge to most accounts.

Starting with March 2024 bills, the demand charge for residential members will be $3 multiplied by their peak demand, which is the highest amount of usage (in kilowatts) that occurs within one 60-minute period during the “on-peak” hours between 4 p.m. and 8 p.m.

For non-residential members, the demand charge varies by rate schedule, and peak demand occurs within one 15-minute period during the billing cycle.

The simplest way for residential members to reduce their peak demand — and resulting demand charge — is to spread out their use of appliances and other power-hungry devices between 4 p.m. and 8 p.m.

Non-residential members can reduce their peak demand by staggering power consumption throughout the day — not just the 4 p.m. to 8 p.m. window.

Peak demand occurs only once per month for both residential and non-residential members. If your peak demand within a billing cycle is 8 kilowatts, your demand charge will be based on that single 60- or 15-minute period, even if your demand reaches 7 kW any other time during the same billing cycle.

Your peak demand for the most recent billing period can be found under Your Energy Use on the first page of your CORE monthly bill. Your demand charge appears under the Current Activity portion on the second page of your monthly bill.

You can identify your daily and monthly peak demand via the Usage Explorer in the SmartHub account management platform. Click on the My Cooperative tab, then Rates and Regulations, for more information about the demand charge.

Stacking vs. staggering

Here are two scenarios to illustrate for residential members the savings that are possible by staggering power consumption rather than stacking it:

Scenario A: Stacking

A member decides to begin cooking a roast at 5 p.m., at the same time they start a cycle in the dishwasher and throw a load of laundry into the dryer. Assuming the oven and dryer have the same wattage of about 4 kilowatts (kW) and the dishwasher’s is 2 kW, the member’s peak demand during that 5 p.m. hour will be around 10 kW (4 + 4 + 2), which will generate a demand charge of $30 as of March 2024.

Scenario B: Staggering

A member opts to first cook the roast at 5 p.m., dry clothes at 6 p.m., then run a load of dishes at 7 p.m. Their peak demand during that three-hour window does not exceed 4 kW, which produces a demand charge of $12 — a savings of $18 over Scenario A.

Note: For the purposes of these examples, we have not included other appliances or devices — such as a TV, furnace or lighting — that likely are already drawing power during on-peak hours but are not as easy to stagger.