Understanding Electric Demand
Starting in January 2026, Dakota Energy Cooperative will implement a residential demand billing rate structure.
The power you use any point in time requires specifically sized equipment to carry that power. The more homes and businesses that are using that power at once the larger the Dakota Energy substation, poles, transformers, and equipment needed to reliably deliver and maintain the system.
Historically, electricity at home has been solely based on how much is used. This change separates the demand component from the historical consumption price that we have known for so long. New metering technology has given utilities the ability to recover their costs in alignment with how those costs are incurred.
Calculate Demand Billing
What is Demand?
Demand is the highest amount of electricity used at any one time. Demand is instantaneous use at a given moment.
For example, the more appliances being used all at once, the higher the demand for the electrical system. Using the electric oven, washing machine, clothes dryer, microwave, and space heater at one time creates greater demand than only using the oven and washing machine at once.
As your power provider, Dakota Energy must meet members' demands for electricity. We must be ready for the fluctuations in demand, including the highest peaks. The demand billing rate recovers our cost to make power available to you at any given point during the day. To recover those costs fairly, we apply the rate individually, based on the maximum amount of power you use at one time during the month.
For example, the more appliances being used all at once, the higher the demand for the electrical system. Using the electric oven, washing machine, clothes dryer, microwave, and space heater at one time creates greater demand than only using the oven and washing machine at once.
As your power provider, Dakota Energy must meet members' demands for electricity. We must be ready for the fluctuations in demand, including the highest peaks. The demand billing rate recovers our cost to make power available to you at any given point during the day. To recover those costs fairly, we apply the rate individually, based on the maximum amount of power you use at one time during the month.
Is this a new billing system?
Yes, Dakota Energy will start billing for residential demand. Dakota Energy has been billing demand on large power accounts, but not on small power residential.
The new change allows Dakota Energy to more accurately allocate its expenses based on how they are incurred by the Cooperative. At the same time, the billing change allows the Cooperative to most equitably charge members based on their demand to the system.
The new change allows Dakota Energy to more accurately allocate its expenses based on how they are incurred by the Cooperative. At the same time, the billing change allows the Cooperative to most equitably charge members based on their demand to the system.
Is this a rate increase?
Dakota Energy members will have a rate increase starting in January 2026. Part of the increase will be collected through the demand charge.
How will this change affect members?
The amount of the increase depends on members' demand to the system, and it is something members can control.
Looking at the "Understanding Demand" illustration: by using the electric stove and dish washing machine at different times, the member can decrease their demand and reduce some of the increase in the monthly electric bill. Members will be billed on their highest demand for the month.
Looking at the "Understanding Demand" illustration: by using the electric stove and dish washing machine at different times, the member can decrease their demand and reduce some of the increase in the monthly electric bill. Members will be billed on their highest demand for the month.
Where can I find my demand billing?
On your billing statement, it is listed under meter reading information as kW (kilowatts). An example bill can be found here.
