Demand rate

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Demand Rate

Your electric bill not only includes charges for the amount of energy you use, but it also tracks and charges you for an electrical "demand" that occurs at your home during each monthly billing cycle. This demand component charge is designed to cover part of the actual costs of providing electricity to your home.

Electric demand is measured in kilowatts (kw). It is largely measured by the total number of electrical appliances that are operating in your home at any one time. Alaska Electric Light & Power averages this demand over a continuously sliding 15-minute window and bills for the peak 15-minute average of the monthly billing cycle.

Naturally, the demand charge is going to be more if a large quantity of electricity is demanded in a short period of time. This happens if you use many different electrical appliances at the same time. When you do this, you're asking us to provide electricity at a high rate. To keep your electric bill down, use no more than two appliances at any one time. Limiting demand is the best way to lower your electric bill.

Energy (kilowatt hours) rates are relatively low when a demand rate is charged. By keeping the demand level low, you will maximize your overall savings. Computer load limiting equipment is the best way to automatically manage demand levels.