This new rate can help customers better manage their electric bill when customers are able to shift demand away from peak periods, through staggering the use of major appliances during peak periods or by shifting the use of these appliances to hours outside of the peak period. Rate FD-D differs from the standard residential rate, known as Rate FD (Family Dwelling), by using a ratcheted demand charge to help customers manage their bill when they reduce their demand during peak periods. The ratcheted demand will be measured during the weekday peak hours of 1:00 pm to 5:00 pm in April through October and 6:00 am to 9:00 am in November through March. The energy charge will be a flat fee for all kWhs consumed within each month.
Demand is the amount of power, measured in kW, needed to operate every electrical device running in your home at a specific point in time. Examples of common appliances and typical demand or kW are listed below
In the example below, one might typically arrive home and begin to cook, run the dishwasher and dry some laundry while another family member uses hot water while showering. If the demand for the moment that all of that happened was displayed graphically, it might look something like this:
By staggering use of large appliances, you have control over how much you’re charged for demand each month. The picture below illustrates how changing when the appliances are used can impact the overall demand charge.
In short, this rate utilizes a demand ratchet which is commonly used in the electric utility industry and means that your demand charge will be based on the highest of your current month’s demand or 90% of the highest demand over the last 11 months. Both of these demand measurements will be taken during the peak periods defined in the rate. Managing your demand during peak periods will give you an opportunity to impact your bill.