Most people aren’t familiar with a peak demand rate because it’s not common in many markets. Take the highest kW use period of the month, and multiply kW demand by $20. Run the oven; pulls 3kW; $60. Run the oven and the stove top (1.8kW) at the same time $96. Screw up one time during the month and you might as well not care about the rest of the month.
I’m being a bit hyperbolic - it’s averaged over the highest 1 hour peak demand period (4pm-7pm, M-F), but it does limit what things can be run simultaneously (no dryer, oven and AC at the same time, for example). We schedule things around that, Our peak demand for this past month was 2.3kW. That single line item charge is higher than our entire gas bill.
There’s a separate use charge as well, but per kWh that’s pretty low. Then, of course, there’s the dozens of other random charges and fees ($86) that have nothing to do with electricity generation and everything to do with being a monopoly (court resolution surcharge: $3.58). The idea of moving more things to electric is nauseating.
I’m being a bit hyperbolic - it’s averaged over the highest 1 hour peak demand period (4pm-7pm, M-F), but it does limit what things can be run simultaneously (no dryer, oven and AC at the same time, for example). We schedule things around that, Our peak demand for this past month was 2.3kW. That single line item charge is higher than our entire gas bill.
There’s a separate use charge as well, but per kWh that’s pretty low. Then, of course, there’s the dozens of other random charges and fees ($86) that have nothing to do with electricity generation and everything to do with being a monopoly (court resolution surcharge: $3.58). The idea of moving more things to electric is nauseating.