Starting in November (2025), your bill will display your monthly peak demand during the On Peak timeframe (weekdays from 5-9 PM). Currently, there is no demand charge for the majority of our residential and farm accounts, but we are working on a proposal to introduce a demand charge starting in 2026. This proposal would implement a Time of Day Demand charge for Rates 2, 5, and 18 that helps MCPA recover the demand charges we pay monthly on our wholesale power bill. With the approval of this demand charge, all rate classes will have a demand charge as part of their monthly billing.
UNDERSTANDING DEMAND
Demand varies from hour to hour, day to day, and season to season. You could use the same amount of electricity as your neighbor on any given day, but if you are using most of that electricity during one hour after work, your demand is higher than your neighbor’s.
Demand (kW) is the amount of power needed to supply everything running off of electricity in your home at a specific point in time. That means all the appliances and equipment that are running simultaneously at any time. Your peak demand is the highest level of electricity used, measured in kilowatts (kW), during the month.
Learn about the new Time of Day Demand Charge:
Proposed 2026 Time of Day Demand Rate (TODD)
When You Use Power Matters
The Time of Day Demand (TODD) charge applies to Rates 2, 5, and 18. The charge is based on the highest level of electricity used (your demand) for the month, measured in kilowatts (kW), during On Peak Hours of 5 PM to 9 PM, Monday through Friday (excluding holidays). The Time of Day Demand (TODD) charge is based on the highest level of electricity used (your demand), measured in kilowatts (kW), during On Peak Hours of 5 PM to 9 PM, Monday through Friday. That one peak in the month — the highest of all days — is used to calculate the account’s monthly TODD charge.
Excluded Holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Members can lower their demand by shifting energy use away from the on-peak period. Small changes like doing your laundry on the weekends or running your dishwasher after 9 PM will lower your On Peak demand.
WITH THE NEW TIME OF DAY DEMAND (TODD) CHARGE, THE ENERGY RATE FOR RATES 2, 5, & 18 HAS DECREASED FOR 2026.
Demand charges account for roughly 25–30% of MCPA’s monthly wholesale power bill from Great River Energy. Here’s another way to look at it:
out of every dollar you pay McLeod Cooperative Power, about 61 cents goes directly to paying Great River Energy.
We are designing rates to reflect the true costs of supplying power, and demand costs are a significant consideration as members are being asked to pay for their demand costs.
Strategies for Lowering Your Demand Charge
Here are a few easy strategies to reduce your demand and save money:
Number one:
Shift when you do your laundry. Weekends are best, but if you use your washer or dryer on weekdays, then run them before 5 PM or after 9 PM. Running your dishwasher during Off Peak times can also help.
This strategy applies to other electricity uses, as members can lower their demand charge by not running numerous appliances during On Peak times. Shift as much as you can to Off Peak times to save!
Number two:
Take advantage of our load management programs, such as our storage water heating program, to shift electrical use to Off Peak times. Many of these programs even offer rebates and lower electrical rates.
Number three:
Program your thermostat to pre-heat or pre-cool your home before peak hours. You’ll stay comfortable while your heating or cooling system uses less electricity. Installing or utilizing built-in timers on appliances is another great option.
These are just a few simple strategies to shift power away from the On Peak hours and save on your power bill. We’re here to help you find the solutions that work best for your needs and budget.
If you have questions, give us a call at 320-864-3148.
PLEASE NOTE THAT WITH THE NEW TIME OF DAY DEMAND (TODD) CHARGE, THE ENERGY RATE FOR RATES 2, 5, & 18 HAS DECREASED FOR 2026. CLICK HERE TO VIEW THE APPROVED RATE INCREASES.
LEARN MORE ABOUT THE TIME OF DAY DEMAND CHARGE (Rates 2, 5, and 18):
Q: Why is the Time of Day Demand (TODD) charge being implemented?
A: Demand charges are a significant cost to the monthly bill that we pay to Great River Energy for the power that we purchase for our members’ homes, farms, and businesses. As such, moving forward, every member is being asked to share in this expense by paying a charge for the monthly electrical demand that they generate.
Q: How does this benefit members?
A: Previously, the demand costs were hidden within the kilowatt-hour charge. TODD changes that by separating demand into its own piece. This gives members more control. Under previous rates, the only way to lower your bill is to use less electricity overall. With TODD, you’ll also have the chance to save by shifting some usage away from high-demand times.
Additionally, with the new TODD charge, the energy rates (kWh) for Rates 2, 5, & 18 have decreased for 2026.
Q: What is electrical demand?
A: Demand (kW) is the amount of power needed to supply everything running off of electricity in your home at a specific point in time. That means all the appliances and equipment that are running simultaneously at any time. Your peak demand is the highest level of electricity used, measured in kilowatts (kW), during the month.
For example, you and a neighbor might use the same total electricity in a day. However, suppose your neighbor’s electrical usage is more evenly distributed throughout the day, and you use most of yours during a single hour. In that case, your account creates a higher demand on the distribution system.
Q: Why does our system peak from 5-9 PM on weekdays?
A: This is the time of the day when members are using the most electricity. Demand costs increase during these peak times for the Cooperative based on the high demands across our distribution system.
Q: How is the Time of Day Demand (TODD) charge calculated?
A: For each billing statement, the demand charge is based on the account’s single highest demand interval recorded on a weekday between 5–9 PM. That one peak in the month — the highest of all days — is used to calculate the account’s monthly TODD charge (demand in kW multiplied by $5.00).
Q: Are weekends and holidays excluded from the TODD charge?
A: Yes. Demand is not measured on weekends or holidays, including New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas.
Q: How can I reduce my Time of Day Demand charge?
A: Shifting electricity use outside of On Peak hours can lower your demand charge. Strategies include running your dishwasher before 5 PM or after 9 PM on weekdays or doing laundry on weekends. Some appliances and thermostats have built-in timers that can be used to run during Off Peak times. Participating in load management programs that shift electricity use, like water heating and EV charging, during Off Peak times is another great option.
We encourage members to contact us if they’d like guidance on reducing demand.
Q: Are there online tools to estimate Time of Day Demand charges?
A: Yes. We’ve developed an online estimating tool that considers the type and number of appliances used simultaneously. You can click here to try it.