UNITED IS PUTTING THE POWER IN YOUR HANDS
The membership of United Electric Cooperative has spoken, and your board of directors and management team at United has listened. United Electric has been gathering information from our members over the past few years regarding more control over their electric usage and the amount they pay. The time has come to release more information to our members regarding demand rates. You are receiving this letter to understand better what demand rates can do for you and your families' energy usage. There is no action necessary on your part unless you want to save.
The cost to United from its wholesale provider, NW Electric Power Cooperative, is substantially more expensive during on-peak periods. In United's new rate design, members will have the opportunity or choice to switch usage to times when the system is not at its peak load. By shifting these loads to off-peak periods, you, the member, could save on energy costs for yourself and your cooperative.
It is important to know:
1. Each member's bill will be based on their load profile.
2. United will not collect any additional revenue overall and most likely collect less revenue as members take advantage of the savings during off-peak periods.
3. The On-Peak periods are 6 to 8 am and 4 to 8 pm. All other hours are Off-Peak or ON-SALE 75% of the time.
4. This rate puts the power in your hands to control the cost of your electric service. 5. The first step in this rate change will be implemented on June 1, 2023.
Off-Peak Electricity Pricing: Savings When They Matter
Off-Peak and On-Peak electricity pricing give a valuable opportunity to take control of energy use and electricity bills. Time-based decisions are voluntary to Take Control & $ave while electricity is on sale 75% of each day. The program enables people to choose when they power up appliances based on electricity prices and make decisions that can both save money and reduce the use of natural gas/coal. United Electric currently has a two-part flat rate structure, meaning customers pay a set price per kilowatt throughout the day. This structure will continue through May 2023.
Similar to rush hour traffic, the power grid experiences times of extreme stress and high demand, prompting electric utilities to turn on expensive, fossil fuel “peaking” power plants to meet the Member’s energy needs. This makes the true price of electricity vary throughout the day. Without knowing the true price of electricity paid by your not-for-profit cooperative, Members do not have the basic information they need to conserve power (and, thus, lower bills) when it matters most.
In contrast to flat rates, time based rates give customers a view of how much electricity costs throughout the day, so people can plan ahead. High-traffic energy times occur predictably in the early morning 6 to 8 am and late afternoon 4 to 8 pm when everyone is running air conditioners, cooking, watching TV, and doing laundry. Well-designed On-Peak and Off-Peak rates empower people to lower their monthly electricity bills by simply using larger appliances, like a clothes dryer or water heater at lower-priced (off-peak) times.
Our mission is to Enhance the rural way of life through United. This new rate design will enhance our member's rural way of life by giving them more control over what they pay for electricity. You can put the power in your hands to save on your monthly bill by changing your usage pattern. For an estimate of how this will impact your bill, please get in touch with our office at 800-748-1488 or email demandrate@ueci.coop or contact@ueci.coop.