Residential Demand Charge
What is Flathead Electric Cooperative’s new Demand Charge?
The demand charge is a new component of our residential rate design. It’s a charge based on each member’s maximum energy consumption during certain peak hours when it costs your Co-op more to purchase power.
As a not for profit electric cooperative, Flathead Electric’s goal is to collect our costs from members in the most fair and equitable way. Changing the structure of our rates to include a demand charge means that some members may pay a little less, and some may pay a little more, depending on the demand they require during peak periods.
What is electrical demand?
This two minute video will help you understand electrical demand and why a demand charge is a more fair way for our members to pay for the power they use.
Check back soon.
As the rate details are finalized, we will update this page with additional information and tools (including a rate calculator that will let you see exactly how this change will impact your bill). Please check back soon!
In the meantime, check out our Frequently Asked Questions below to learn more.
Frequently Asked Questions
Residential Demand Charge
Peak hours are Monday through Friday from 7-10 am and from 5-8 pm.
Off Peak hours are all day every day except during the Peak hours of 7-10 am and 5-8 pm Monday through Friday only. All weekends and holidays are Off-Peak times. That means that the majority of the time there is no demand charge.
Your Co-op Board of Trustees will make that decision at the February board meeting but preliminary estimates are that it will be a very small amount. We will publish the exact rate as soon as it is formally adopted by your Board of Trustees.
It will impact all residential bills issued after June 1, 2019.
Initial projections are that the vast majority of our residential accounts will see their bill go up or down less than 2%. Members who put a lower demand on the system during peak periods will pay less than those with a higher demand.
Over the years the way we are charged by our wholesale power provider, the Bonneville Power Administration, has changed. Flathead Electric Co-op now pays a premium for power used during the peak times that were listed above. This new charge collects those costs more accurately and more fairly from our members.
This new rate design gives members one more way to control their costs by making small changes in household activities. During peak hours avoid using major appliances like your dishwasher, heating and air conditioning systems, or washer and dryer at the same time. Consider doing laundry and other chores that require electricity mid-day, later in the evening, or on weekends.
Starting in June 2019, it will be noted in several places on your bill; in the Service Description portion, in the Energy Usage Information, and in the Current Service Detail.
You can find lots of useful information by logging into your My Co-op app on your mobile device or by logging into your Smart Hub account. Both of these have information on what your peak demand measurement was and when it occurred. In addition we are developing an on-line tool that will calculate your bill based on different inputs that you enter.