A demand charge is not based on how much electricity you use but how much you use at once. In other words, if you have all your stuff powered at once you could cross a set threshold which would then put you in a higher rate bracket for the entire month.

Here’s another explanation of it from a recent Arizona Republic newspaper article:

Demand charges are common for business customers but not for residential. They discourage the use of multiple appliances at once. For example, running an air-conditioner, pool pump, dishwasher and other appliances at once during peak demand hours in the afternoon would set a high demand charge for the entire month, regardless of how conservative customers are every other day.
( http://www.azcentral.com/story/money/business/energy/2016/02/18/rural-utilitys-case-could-have-big-impact-rooftop-solar-fees/80516092/# )

Demand charges are being asked for in an ongoing rate case by a small Arizona electricity provider called UniSource Energy Services. APS wants the demand charge precedent set in the Unisource case to make it easier to get their own demand charges in their upcoming rate case. Indeed, APS has even bought an expert witness to testify in the Unisource rate case.

What’s worse, the Director of the ACC’s Utilities Division wants everyone on a demand charge also. From the same Republic article:

“The sooner a migration occurs the better for all,” said Thomas Broderick, director of the Corporation Commission utilities division, in his testimony.

Demand charges are one of the main reasons “smart” meters were installed.It’s not possible to have demand charges with analog meters. That does not mean those of us with analog meters will be off the financial hook however. I expect APS to request some punishing fees for those of us with analogs in its rate case.

I ask everyone reading this to help stop this insane greed by writing the ACC. TUSK, The Alliance for Solar Choice, has prepared a letter you can send to the ACC commissioners telling them (among other things):

Demand charges are an anti-consumer billing mechanism designed to confuse ratepayers and dis-incentivize conservation and energy efficiency.  Demand charges ambush ratepayers. You only know when your peak demand has been set after the fact. Ratepayers should be charged for the energy they use, not ambushed with exorbitant charges based on a single 15 minute period within a month.

TUSK is a pro-solar advocacy group. Regardless of what you think about solar, please take a moment to send their pre-written letter to the ACC. Demand charges must be stopped (and you can edit the pro-solar verbiage in the letter if it bothers you).

Here’s the link to send your letter: http://action.allianceforsolarchoice.com/page/speakout/unisource-s-power-grab?

Warren Woodward
Sedona AZ

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