Billing and Demand: Definitions and Terms
Below are some of the common definitions and terms related to billing and Demand.
These are also available in our Frequently asked Questions.
Download a PDF of the Frequently Asked Questions.
The average Demand over a continuous 15-minute interval, expressed in kW. Note: 15-Minute Demand is calculated by the Cooperative’s meter by measuring the total energy consumed over a 15-minute period, in kilowatt-hours (kWh), and dividing by the duration of 0.25 hours.
The amount of electrical energy consumed over a continuous 60-minute interval beginning at the top of each hour, as measured by the Cooperative’s meter, and expressed in kW. Note: 60-Minute Demand is the average demand over a one-hour period determined by dividing the total energy consumed in one-hour, measured in kilowatt-hours (kWh), by the duration of one-hour.
The Base PCA is a per kWh dollar amount calculated and fixed annually reflecting year-over-year adjustments in wholesale power costs.
A Billing Cycle at Stearns Electric begins on the first day of the calendar month and ends with the last day of the calendar month.
The maximum 60-Minute Demand established by the member-consumers’ electrical load during the monthly Billing Cycle, as calculated by the Cooperative’s Meter Data Management System (MDMS).
The maximum 15-Minute Demand established by the member-consumers’ electrical load during the monthly Billing Cycle, as calculated by the Cooperative’s meter every five minutes.
The maximum amount of electrical energy consumed at a single point in time, measured in kilowatts (kW).
The cost for peak power use in the monthly Billing Cycle, determined by multiplying the Billing Demand by the Demand Rate. (Only applicable to certain Rate Classes.)
A per-kilowatt (kW) dollar amount.
Total amount of electricity used or consumed over time, measured in kilowatt-hours (kWh).
The cost of total energy consumed in a month, determined by multiplying the amount of energy used (number of kWh) by the Energy Rate.
A per kilowatt-hour (kWh) dollar amount.
A set monthly fee specific to each Stearns Electric Rate Class, applied to member-consumers’ electric bills. The Fixed Charge is designed to fairly recover a portion of the fixed costs to own, operate and maintain the Cooperative and the Cooperative’s distribution system.
The Monthly PCA is a per kWh dollar amount reflecting month-to-month variability in wholesale power costs primarily driven by the effect of weather and fuel prices on market costs. The Monthly PCA corresponds to power cost adjustments (charges or credits) the Cooperative is assessed each month by its power supplier(s).
The PCA is a per kilowatt-hour (kWh) charge or credit applied to monthly bills reflecting annual and monthly wholesale power cost variations. The PCA combines two components: a Base PCA and a Monthly PCA (PCA = Base PCA + Monthly PCA).
The specific category Stearns Electric assigns to a group of member-consumers who share similar energy usage patterns, energy load sizes and/or purposes for consuming electricity.
A description of each Rate Class’s requirements, rate components and pricing structure, as well as the applicable terms, conditions and fees. The rate components and pricing structure for each Rate Class, as approved by the Stearns Electric Association Board of Directors, can be found on our Rates Page.
An electric service pricing structure based on a fixed charge and two variable charges. The Cooperative’s Rate Schedules that include a Fixed Charge, Energy Charge, Demand Charge and Power Cost Adjustment (PCA) are considered Three-Part Rate Structures.
An electric service pricing structure based on a fixed charge and a variable charge. The Cooperative’s Rate Schedules that include a Fixed Charge, Energy Charge and Power Cost Adjustment (PCA) are considered Two-Part Rate Structures.