A demand charge is based on your highest hourly consumption of electricity during peak hours in your billing cycle.
You can lower your demand charge by spreading out large electric uses, such as laundry, dishwashing, EV charging, heating, cooling, or other high-use equipment.
Video: Understanding Demand
Flathead Electric Cooperative uses a demand charge to help recover the higher cost of serving electricity during peak hours, when demand on the system is greatest. This rate structure also helps treat members more fairly by better aligning costs with how electricity is used.
The residential demand charge began June 1, 2019. The demand charge for small general service accounts began June 1, 2025.
As a member-owned, not-for-profit electric cooperative, our goal is to provide reliable, low-cost power while treating all members fairly. When members shift some electric use away from peak hours, it can help lower costs for the entire cooperative.
What is a Demand Charge?
Electricity must be available the moment you use it. During certain times of day, many members use electricity at the same time, such as when they are getting ready for work, cooking meals, heating or cooling their homes, or running appliances.
These high-use times are called peak hours. Because electricity costs more to serve during peak hours, your Co-op uses a demand charge to help recover those higher costs more fairly.
Demand is the highest amount of electricity you use at one time during peak hours in a billing cycle. It is measured in kilowatts, or kW.
You can reduce your demand by spreading out large electric uses instead of running them all at once during peak hours.
How to Reduce Your Demand
To reduce your demand (and demand charge) going forward, consider making these adjustments:
- During peak hours, spread out the use of major appliances rather than running them at the same time.
- Do laundry and other chores that require significant amounts of electricity outside of peak hours, such as mid-day, later in the evening, or on weekends.
- Consider setting timers to run your dishwasher, clothes dryer and other appliances outside of peak hours.
- Purchase a programmable thermostat to reduce heating and air conditioning usage during peak hours.
- Visit our Thermostat Rebates Page to earn a rebate for the purchase of a smart thermostat which can help you reduce demand by controlling when you heat and cool your home.
