Electric Demand Charge

Image
2026 Spread Don't Stack

Demand is measured in kilo-watts or kW and represents the rate at which electricity is being used. In other words, it’s the amount of power required in an instant to satisfy the needs of all your connected appliances, lighting, heating, and anything else in your home requiring electricity at the exact same time.

Currently, residential and general service members do not have a separate charge for demand, just a line item that allows them to monitor it. That will change in 2027 when Sioux Valley Energy begins charging residential and general service members on their highest individual demand during their billing period.

Sioux Valley Energy will hold Demand Rate Informational Meetings in the fall to educate members about the upcoming rate change. CLICK HERE for the Brats & Kilowatts event schedule and RSVP.

WHAT IS ENERGY AND DEMAND?

Watch the video below to learn more about the three components included on your electric bill - Energy, Demand and Basic Service.

DEMAND AND ENERGY ANALOGY

Watch the video below for another way to understand Demand. 

Image
2026 Understanding Electric Demand Explainer graphic

To reduce demand, spread your energy use over time…don’t use all your appliances and equipment at once. SPREAD DON’T STACK.

Energy is the total amount of electricity consumed over a certain time-period and is measured in kilowatt hours or kWh. Demand represents the rate in which electricity is being used and is measured in kilowatts or kW. In other words, it’s the amount of power required in an instant to satisfy the needs of all your connected appliances, lighting, heating, and anything else in your 
home requiring electricity at the exact same time.

As more appliances in your home run at the same time, your demand for power increases.

2026 Rate Calculator With Example Demand Rate

2026 Example Demand Rate

Enter monthly energy usage and peak demand, then select a rate to compare the approved 2026 rate with an example demand-rate structure.
The rates included in this calculator are based on 2026 rates plus a calculation of what rates would have been if a demand component was included. The calculations are NOT based on 2027 rates. Those will be approved and announced in late 2026. 

If applicable, enter the electric heat kWh shown on your bill. Otherwise, leave this value at 0.
Residential
2026 Rate
2026 RateAmount
Energy Charge: 0 kWh x $0.1281$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Basic Service Charge$30.00
Total 2026 Charges$30.00
Example Demand Rate
Example 2026 Demand RateAmount
Energy Charge: 0 kWh x $0.0960$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Example Demand Charge: 0 kW x $4.00$0.00
+ Basic Service Charge$30.00
Total Example Charges$30.00

This WOULD HAVE been the kW and kWh rate in 2026 IF demand had been broken out separately.

Farm and Rural Residential Single-Phase
2026 Rate
2026 RateAmount
Energy Charge: 0 kWh x $0.1281$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Basic Service Charge$65.00
Total 2026 Charges$65.00
Example Demand Rate
Example 2026 Demand RateAmount
Energy Charge: 0 kWh x $0.0960$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Example Demand Charge: 0 kW x $4.00$0.00
+ Basic Service Charge$65.00
Total Example Charges$65.00

This WOULD HAVE been the kW and kWh rate in 2026 IF demand had been broken out separately.

Farm and Rural Residential Three-Phase
2026 Rate
2026 RateAmount
Energy Charge: 0 kWh x $0.1281$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Basic Service Charge$120.00
Total 2026 Charges$120.00
Example Demand Rate
Example 2026 Demand RateAmount
Energy Charge: 0 kWh x $0.0960$0.00
+ Electric Heat Charge: 0 kWh x $0.0745$0.00
+ Example Demand Charge: 0 kW x $4.00$0.00
+ Basic Service Charge$120.00
Total Example Charges$120.00

This WOULD HAVE been the kW and kWh rate in 2026 IF demand had been broken out separately.


Demand Calculator

Check out our calculator to learn about the impact of common household appliances and equipment.

Calculate Your Demand Usage
Image
UnderstandingDemandFlier
Image
Understanding Demand (2)

Sioux Valley Energy Commitment

The Sioux Valley Energy commitment is focused on you - the member. Hear from your Cooperative leadership on what that commitment means.