The Demand price plan is a combination of two things: 1) a demand charge ($6.49 per kilowatt - kW) that is only applied during a defined peak period and 2) a lower energy rate (2.529¢ per kilowatt hour - kWh). In comparison to the demand price plan, the Lakeland Electric Standard price plan charges an energy rate between 5 and 6 cents per kilowatt-hour used with no peak period demand charge.
Customers on the Demand price plan will benefit by lessening their household demand during short periods of time while enjoying a much lower energy rate at all times. The demand charge is determined by the customer’s highest usage during the peak hours within one payment period.
The residential peak period for the Demand price plan occurs on weekdays only and accounts for a mere 15% of the entire year. Six holidays are also Off-Peak when they occur Monday through Friday (see schedule below for exact hours).
The On-Peak hours are as follows (see image below as well):
Winter (Nov 1 – March 31):
- Monday – Friday 6:01 a.m. – 10:00 a.m.
- Exceptions for holidays: Thanksgiving Day, Christmas Day, New Year’s Day
Summer (Apr 1 – Oct 31):
- Monday - Friday 1:01 p.m. - 8:00 p.m.
- Exceptions for holidays: Memorial Day, Independence Day, Labor Day
The Demand price plan creates an incentive for customers to smooth out their load. Customers can do this through efficiency practices, like not running multiple appliances at one time, avoiding using appliances during peak periods, etc. Other money-saving technologies, such as battery storage and load controllers, could also help.
