Beginning in March 2022, Grand Valley Power will transition all small and large power rate classes to a three-part (demand) rate. The rate structure breaks apart the traditional blended rate to include a Grid Connectivity charge, Energy Charge, and Demand Charge component. The following information will help members better understand demand as it relates to their energy use.
So, what is demand?
Demand refers to the maximum amount of electrical power that is being consumed at a given time, as opposed to energy which is the amount of power used over a period of time.
The Demand Charge line item that appears on your monthly bill represents the 15-minute interval with the highest amount of electricity used during that billing month – measured in kilowatts (kW).
If you're wondering about the "demand charge" line item on your electric bill, you're not alone. In this video, we use simple real-life examples of a small business and a large business and how you can control your energy demand.