Demand Rates Offer You Control

FreeState will implement demand billing in 2025 as part of the cooperative’s new rate structure. Demand billing provides equity among members, and makes sure all members pay their fair share by eliminating subsidies of rate classes. Demand billing also provides members with more cost control by monitoring energy usage during specific blocks of time.

What is demand and why bill for it?

Demand is the amount of power needed to supply every electrical device running at your service address at a specific point in time. It is the maximum rate at which your household has consumed electricity.

FreeState’s wholesale rates from Evergy and Kansas Electric Power Cooperative (KEPCo) are based on the total co-op demand. Some members create more demand by using more appliances at the same time and as a result, demand more electricity. It is becoming more common to see utilities move to a three-part bill with a demand charge, energy usage charge (kilowatt-hour, kWh) and an electric service charge (ESC).

We now have the technology to capture demand for each FreeState member. A three-part rate insures rates are as equitable as possible and removes subsidies among rate classes.

There is no penalty for the demand on an account. Member demand has always been bundled into the kWh charge, but now with affordable technology we can measure and bill demand separately giving members more control. By charging separately for demand we can fairly distribute the costs of providing service to members who use large amounts of energy at one time.

Beginning in 2025, members will start paying for their portion of the demand created, which will affect the wholesale cost of electricity. FreeState pays for electricity based on the cooperative’s collective peak demand.

What about time of use rates?

Time of use is a variable rate structure that charges for energy depending on the time of day energy is being used. We have a time-of-use rate available to east members (former LJEC members), and west members (former Kaw Valley members) will have access to that rate as well in 2025.

Conversely, demand rates are not affected by when you use electricity: instead, it depends on how much you use at a given time. You are billed for what you use.

What impacts my demand?

Everything with a plug can affect your demand. Lighting represents less than 15% of the average electric bill, but by using efficient lighting, it can be a simple change members can make to lower their demand. For example: One 100 watt lightbulb on for 10 hours uses 1 kWh of electricity.

Ten 100 watt lightbulbs lit for 1 hour use the same 1 kWh of electricity, BUT require 10 times the generating resources (demand) to produce the same amount of electricity.

Another example is using large appliances at the same time. When you do a load of laundry, have three televisions on and have dinner in the oven AT THE SAME TIME your need for energy (demand) increases dramatically.

How can I control or reduce demand?

Every service that uses electricity will create a certain level of demand. For some households, staggering the use of appliances will help manage and reduce demand.

On the other hand, some busy families may see saving time as more important than reducing demand — and that’s OK.

The easiest way to control demand is to spread usage of appliances or electronic devices throughout the day and night. For example, if your appliances have timers, like dishwashers or washing machines with delayed start, using them in the overnight hours can help.

It is possible to make small changes to make a larger impact on your bill.

Here are a few tips to control demand:

Are there a few household improvements you can make? Regular HVAC maintenance insures units are running as efficiently as possible.

Do you need all equipment running at the same time? Can you stagger the use of some appliances or devices?

Can some devices be switched off when they are not in use?

If you are in the market for new appliances, are you seeking out the most efficient models?

Demand billing does provide you more control over your electric bill with the ability to manage when you use power, not just how much you use. And FreeState provides SmartHub, a FREE tool to help you monitor your account 24/7.