How To Combat Low Milk Prices

Farmers aren't the only people looking to save a few bucks here and there. We could all save some money by looking at our energy bill. Not only how much electricity is being consumed, but when you are using it can make a difference. Cornell Cooperative Extension has some suggestions on how to save.

Understanding Demand Charges along with the Time of Use Electric demand is often confusing. These terms refer to the rate at which electricity is being used by a consumer at any given time, and is measured in kilowatts (kW). The electric utility is concerned about the peak demand because it must maintain power quality with appropriate equipment and capacity to meet this peak whenever it may occur.

The consumer’s peak demand during the month is based on a moving 15-minute average for that month. To pay for the generation and transmission capacity to meet peak demand, utilities charge their larger energy users a demand charge based on the single highest 15-minute demand period measured in a month or a specified time period. Some utilities have different demand rates based on the time of day when the peak occurs. The higher demand rates are for periods of the day when the utility sees higher demand.

Since this demand is based on when the energy is used, there may be opportunities to reduce demand charges by better managing the time period in which equipment or electricity is used. For example, managing this “time-of use” is a potential area that farmers could “manage” by shift milking start cycles even by ½ to an hour.

If demand charges are a concern on your farm, you may benefit from a more detailed analysis. A good place to start is with an energy audit that will explain where and when your energy is being used. Contact your utility company to determine whether your meter is on timed use. To reduce your electric demand: