Demand 101

Sioux Valley Energy includes three billing components on residential and general service electric bills. Learn about those components and how your electric bill will change in 2027.

The ENERGY CHARGE is based on the total amount of electricity consumed over a certain time period and is measured in kilowatt hours or kWh.

The second component is the BASIC SERVICE CHARGE. This charge covers the fixed costs associated with providing electricity to your location such as meters, transformers, electric lines, and billing.

Finally, there is a DEMAND LINE ITEM listed on the electric bill, but residential and general service members are not currently charged based on demand. In the past, those demand costs have been blended into the energy and basic service charges.

To more closely align with how the Cooperative is charged by its power suppliers, Sioux Valley Energy will break out DEMAND charges on residential and general service bills starting in 2027.

DEMAND is measured in kilowatts 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.