Frequently Asked Questions

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What is the “Beat the Peak” program? Beat the Peak is a program designed to lower Cotton Electric’s peak demand.  The system demand on the power plants that generate electricity for Cotton Electric members varies throughout the year, but is generally highest during the hot summer months between the hours of 4 p.m. and 8 p.m.

Why did Cotton Electric introduce the program? The Beat the Peak program has been introduced to lower Cotton Electric’s peak demand for several reasons:

1. The demand for electricity in this area of the country is reaching the capacity that power plants can meet.  Either new power plants must be built to meet this increasing demand or the demand at peak times must be decreased.  Building new plants takes time and the costs are continually rising.  Managing the demand for electricity is the least-cost alternative.
2. Reducing electricity demand during peak summer hours reduces the price of electricity by avoiding the use of higher-cost peaking units and lowering the market price for power.  These savings are then passed directly to you, the member, by reducing the power cost adjustment on your monthly bill.
3. By improving our energy efficiency, we help reduce greenhouse gas emissions like CO2 and help the environment.

As a member-owned cooperative, we benefit collectively by every dollar saved. We’re in this together!

What is the difference between kWh usage and kW demand? The term kilowatt hour (kWh) usage refers to the quantity of energy used during a period of time such as one hour or for your monthly bill, a billing cycle. It’s like the odometer on your car and kWh’s are cumulative.  If you drove 30 miles today and 40 miles tomorrow, your total trip would be 70 miles.

The term kW demand refers to the rate at which energy is used and it is averaged over short time intervals (typically every 15 to 30 minutes).  It is like the speedometer on your vehicle.  If you wanted to drive 40 mph, you’re drawing a certain level of power from your vehicle.  If you increase that to 60 mph, you are requiring more power from your engine.  In the end, your total trip will still be 70 miles but your fuel efficiency and demand on your engine were quite different.

Let’s look at another example.

If you have ten 100 watt light bulbs on at one time, the demand is 1,000 watts or 1 kW.  10 bulbs x 100 watts = 1,000 watts or 1 kilowatt.

If the bulbs remain on for one hour, the total used is one kilowatt-hour, commonly abbreviated as kWh.  1,000 watts x one hour = 1 kWh

If you keep those same 100 watt light bulbs on for only 30 minutes, your demand at the time you have the lights on is still 1 kW, but the total kWh’s consumed during the total time period are 500 kWh’s 1,000 watts x 0.5 hour = .5 kWh’s


How does the program work? When Cotton Electric determines that a peak situation exists, the cooperative will communicate with members using a variety of methods.

Members who sign up for the program will either be notified by text message, e-mail or phone call.

Cotton Electric is committed to keeping your information confidential.  We do not sell, rent, or lease your information to any third party. Under no circumstance do we provide this information to any third party, individual, government agency, or company.  If at any time a member would like to unsubscribe from this service, he or she may let us know via
e-mail or by calling our office at 580-875-3351.


How can I reduce my demand? During the time frame specified, members are asked to use energy wisely and follow these guidelines:

1. Use appliances like clothes washers and dryers, dishwashers and other electric devices sparingly.  If you must use them, try to limit usage to one appliance at a time.
2. Appliances that are controlled by thermostats like heaters, ovens and grills should not be turned on all at once.  These appliances require more electricity when heating up than during ongoing operation.  Staggering the start up times by 15 to 20 minutes will help reduce your demand.
3. Delay using hot water so that the demand for your water heater is less during the peak times, especially if you have a tankless water heater which can account for up to 36 kW of demand.
4. Set the thermostat on your air conditioning equipment or heat pump to 78 degrees during the peak time frame.  Another option is to increase the setting on your thermostat by two to three degrees during the peak time.
5. Learn more about your home’s overall energy efficiency and find sources of energy waste.  Take the Energy Efficient Home Tour at www.touchstoneenergysavers.com to learn valuable energy savings tips and download a free Home Energy Savings Guide.
6. If you’re purchasing new appliances or electronic devices, look for ones with the Energy Star rating.  Visit the Department of Energy’s web site at www.energystar.gov to find out more.

What is the goal of the program? Overall, our goal is to save Cotton Electric members money and to help the environment.  By reducing the overall system demand, less power has to be produced or purchased at critical peak times, which reduces the power cost adjustment for all members of Cotton Electric.

Because of growth in our area and the increased need for power, the overall system demand has steadily increased over the past ten years as shown in the graph below. The first step is to reduce the peak demand by 5% of last year’s figures.

During last year’s summer peak, Cotton Electric members had a kW demand of 92,683.  A 5% reduction in demand would leave us with a peak no larger than 88,048 kW. The cooperative will update the web site on a regular basis so that members can track our progress.

What impact can one person make? Many people are surprised by the kW demand of appliances found throughout the home.  The following table lists the average kW demand of typical appliances:

Let’s look at an example.  The Smiths are a typical Cotton Electric family of four. On an average evening, they begin preparing dinner at 5 p.m., wash and dry a few loads of laundry, use their dishwasher and watch television.  They also like to keep the home cool at 72 degrees.

If the Smiths heat pump, range, oven, washer, dryer, dishwasher and television are all operated at the same time, their demand is approximately 16 kW.

The average charge for the demand set during the peak time is $7.50 per kW that is paid each month for a 12-month time period.  This means that by running everything at once during the peak time period, their demand at that one time could potentially cost $1,440.00 ($7.50 x 16 kW x 12) regardless of what the Smiths consumption and demand might be in the next year.

By cycling the appliances or avoiding the use of them entirely during the peak time period, they can drastically reduce their overall demand and lower the overall cost of power for all Cotton Electric members.

For example, the Smiths might use their range but not the oven. Another option would be grilling outdoors, which both lowers their demand and helps avoid the excess heat given off by the range and oven which causes the air conditioner to work harder to cool their home.  Or, they might wash clothes during this time and wait to use the dryer until later in the evening.  They might also turn their thermostat to 78 degrees in order to reduce the demand on their heat pump or other air conditioning equipment.


Where will I see the savings on my bill? The first impact made by reducing your demand will be lowering the monthly power cost adjustment (PCA). The PCA factor is used to recover the cost of wholesale power when it is greater than the base rate of 5.9 cents per kWh (for residential and small commercial accounts).

The second impact on your bill will be seen in following years because the demand we set during the peak period affects the rates we are charged.

In the future, members may also be able to participate in new rate programs that will allow them to maximize the savings on their electric bill by controlling demand.

If you have questions about the program, please e-mail us or call us 580-875-3351 or 800-522-3520 and ask for Member Services.