You can accomplish a lot in an hour. You can cook dinner, watch an episode of your favorite show or help a neighbor with a quick task. An hour can feel small in the course of a day — but at Pioneer Electric, there’s one hour each year that has a lasting impact on what we all pay for power. And it usually happens in January.

One of the biggest factors that influences what we all pay for power is something many members never see: coincidental peak demand.

Coincidental peak is the single hour in a year when PowerSouth — our wholesale power provider — experiences its highest system-wide demand. In other words, it’s the moment when everyone across Alabama and the Florida panhandle are using the most electricity at the same time. Think of it as a power rush hour.

That one hour becomes the basis for the demand charges we pay to PowerSouth, and those costs flow directly into our members’ rates.

For Pioneer Electric, our coincidental peak always occurs on a very cold morning (usually in January), typically between 6 and 8 a.m. That’s because many of our members use electric heat. Electric heat and other winter loads are very energy-intensive, so that brief window becomes the most expensive hour of the year.

Here’s where the impact becomes significant. PowerSouth uses a ratchet, which means the single highest demand we hit in a year sets a minimum billing level for months afterward. 

If Pioneer Electric’s system demand spikes during that January hour, the co-op pays thousands of dollars more in excess demand charges — not just once, but for months. Those added costs don’t come from energy use throughout the day; they come from what happens during that one peak hour.

The good news is that members can play a direct role in helping reduce our coincidental peak demand and, in turn, help manage future power costs. 

By limiting the use of high-demand equipment between 6 and 8 a.m. on extremely cold mornings, you can make a meaningful difference. 

Simple steps include lowering the thermostat a few degrees, delaying the use of clothes dryers and ovens and avoiding space heaters during that window. Even small adjustments across our membership add up quickly.

To make this even easier, Pioneer Electric will begin sending “Beat the Peak” alerts to members when we expect a peak day to occur. These notifications will give you a heads-up on extremely cold mornings when reducing your demand can make the biggest difference. Any adjustments you make are completely voluntary, but even small changes can help protect the cooperative and your fellow members from the high costs tied to that single peak hour.

When we work together to reduce our coincidental peak — even slightly — we reduce the amount Pioneer Electric must pay for wholesale demand. That helps stabilize rates and protects all of us from unnecessary costs driven by a single hour.

Thank you for your continued support and for being an active part of the cooperative. With your help, we can keep our system strong, reliable and affordable for the years ahead.