It’s a scene played out in thousands of Central Florida households. It’s 3 p.m., and your kids are getting home from school. You arrive a couple of hours later. Inside, your lights are on, computers and TVs are in use, you begin cooking dinner, and the A/C is running at full blast to cool your home. Mind you, all of this happens during the hottest part of the day. Welcome to peak demand!
Simply put, peak demand is when consumer demand for electricity is at its highest. Summer peaks typically occur on days when temperatures are not lowered by afternoon thunderstorms and cloud cover, while winter peaks occur during cold, early morning hours before the sun has fully risen.
At OUC, we typically see electricity usage peak during the summer between 5 p.m. to 7 p.m., while winter peaks occur from 7 a.m. to 9 a.m. Electricity is generated, transmitted and distributed as needed. And while OUC is piloting a utility-scale battery energy storage system that can help save electricity captured via solar, capturing and storing mass amounts of electricity remains a challenge from an economic standpoint.
So, you may be wondering how OUC balances this demand with our supply and what you can do. Reducing your use during peak times can have a beneficial effect on electric rates over time. OUC is a statutory municipal utility commission, which means the costs of operating the electric system are paid for by our customers. As a result, we want to do all we can to keep the grid affordable. By collectively shifting our habits, we can avoid the need for OUC to start up additional power plants, buy more expensive power from the market, or build new, costly generation facilities to produce electricity.
Shifting the demand for electricity costs nothing, and small changes can have a big impact. It can be as simple as setting your air conditioner to 78 degrees or higher, or even waiting until late evening to run laundry, the dishwasher or a pool pump.
OUC recently announced proposed plans for Shift & Save, a time-of-day billing program, which incentivizes customers to shift the bulk of their energy consumption to off-peak times. While the program won’t be available until early 2027 (if approved by OUC’s Board of Commissioners), it’s a change from the traditional one-size-fits-all approach to billing and will give you more control over your electric bill. In exchange for paying lower rates for off-peak energy consumption, Shift & Save customers will pay a higher rate for electricity used during peak demand hours. While it may seem like the program is a long way off, by starting new habits today, you will be ready to save when the program goes into full effect.
So, what can you do now to help reduce your demand on the grid while saving money at the same time? Try these tips:
- Set your A/C to 78 degrees or higher. Every degree below 78 degrees adds 6-8% more to your cooling costs. Remember, your A/C can account for over 50% of your bill because it can run twice as long in warmer months to keep your home cool as it does throughout the rest of the year.
- Change A/C filters regularly and have annual maintenance performed so your unit runs efficiently. If you need assistance, check out OUC’s Preferred Contractor Network.
- A smart thermostat can minimize cooling costs when you’re away and ensures maximum comfort on your return.
- Using an oven to prepare food can warm your home. When possible, consider using a grill, microwave, air fryer or toaster oven when preparing food.
- Use vent fans in bathrooms and kitchens to remove humidity at the source.
- If you have a pool, set the timer so the pump runs overnight.
- Charge your electric vehicle overnight, not when you get home from work.
- Use large appliances – dishwasher, clothes dryer, washing machine – early in the morning or later in the evening. If the appliance has a delayed start feature, set it.
- Replace aging appliances with ENERGY STAR® models. If your refrigerator is more than 10 years old, that’s a great place to start.
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