Dixie Electric must plan for future growth and design electric power lines, transformers, substations, and other equipment to supply the maximum requirement of electricity by all members, whether that requirement is for 15 minutes or for months. Likewise, Cooperative Energy, Dixie Electric’s wholesale energy provider, must plan for and have available adequate generation capacity to meet members’ consumption requirements. Electric demand determines the investment that’s necessary to deliver electricity to any customer when needed. This investment is recovered by allocating demand costs to each member.
