# Understanding Demand

Demand is the highest amount of electrical power - measured in kilowatts (kW), 1,000 watts - at one point in time during the billing cycle. If you turn on all of your appliances at once, or if you use your major appliances (and biggest energy hogs) all at one time, your energy demand goes very high, very quickly for that specific point in time.

Demand for electricity varies throughout the day. Think about how a community operates: demand is lowest during the night when most people sleep and most businesses are not open. On the other hand, demand is highest during the day while businesses are operating and people are working, doing house chores, etc.

Electricity must be produced exactly as people need it and JEA must generate enough power to meet our customers’ demand at all times. By encouraging customers to shift energy use to other times of the day and to run fewer appliances at the same time, existing JEA power plants can operate more efficiently, and if the community does this enough, ultimately by all working together we can reduce the need for JEA to build more power plants to accommodate the demand that is created by all of us using a lot of energy at the same time.

## Examples of How Demand Works

To understand demand, it is easiest to look at examples.

### Example 1

Think of demand like the gasoline consumption in your car. If you step on the gas and speed up quickly, you burn off fuel at a faster rate than if you were to start more slowly and evenly.

### Example 2

Or, think about demand like your Internet service. When one person streams a movie or television show on a device in your home, the stream works perfectly. But as additional people in your home attempt to stream video at the same time, more bandwidth is needed.

## How is Demand Calculated?

We told you Demand is the highest amount of electricity used at one time. It is calculated using the highest amount of electricity demanded in a 15-minute period. Within an hour, there are four 15-minute increments. By multiplying the highest number of kilowatt hours (kWh) used in one 15-minute increment by four, you get the kilowatts (kW) - or Demand - for that hour.

## Demand Rate Pilot - JEA SmartSavings

As JEA looks to the future to support our community’s growing population, it is critical that we consider all infrastructure impacts and needs.

JEA SmartSavings offers an equitable way to redistribute the power supply we already have in place. If customers try to minimize their usage during Peak Hours and use only one major appliance at a time during all hours of the day, the demand on the power system will be eased. Those who are not willing to make these changes will pay the higher Peak Hours rate.

This type of program is being offered by more and more utilities around the country as part of planning for the future and helping to keep utility costs affordable. JEA's pilot program is based on the demand when and how customers use energy - focusing on timing and how many appliances you run at the same time. It is a program based on the demand on the electric system - yours as an individual user and the community’s as a whole.

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