Understanding Peak Demand

Managing peak demand helps control
costs and strengthen reliability

Understanding peak demand is one of the most important ways electric cooperative members can help control power costs for the entire community. While most people focus on how much electricity they use each month, the timing of that usage also plays a major role in the cost of providing reliable electric service.

Peak demand occurs when the highest amount of electricity is being used across the system at the same time. In our region, this typically happens on extremely hot summer afternoons or very cold winter mornings when heating and cooling systems are working hardest. During these periods, demand rises sharply as homes, businesses, schools and industries all require more power simultaneously.

Electric cooperatives like Ozarks Electric must maintain enough generation and infrastructure to meet these peak periods, even if they occur only a few hours each year. Wholesale power providers also charge higher rates during times of peak demand because additional resources are needed to ensure reliability. Those increased costs ultimately affect the cooperative and its members.

The good news is that small changes can make a meaningful difference. Members can help reduce peak demand by adjusting thermostats a few degrees, using major appliances during off-peak hours, turning off unnecessary lights, and improving home energy efficiency. Installing smart thermostats, adding insulation, and sealing air leaks can further reduce energy use and lower strain on the electric grid.

Managing peak demand helps control costs while strengthening system reliability. At Ozarks Electric, we are committed to educating members about energy use and investing in technologies that support a reliable electric system.

By working together and making informed energy choices, members help keep electricity affordable, dependable and sustainable for
future generations.

Mitchell Johnson
President / Chief Executive Officer