During its regularly scheduled meeting (Nov. 16, 2016), the La Plata Electric Association (LPEA) Board of Directors approved the rate structure for 2017, including no rate increase for its general residential member-customers.
The directors also approved an adjustment to its optional Time-of-Use (TOU) tariff, increasing the number of “off-peak” hours (those billed at the lower, 5.9 cent per kilowatt hour (kWh) rate) by 33 percent, and a base rate reduction of $1.50 per month. To balance the increased off-peak hours, the TOU “on-peak” rate will increase to 23 cents per kWh. The new rates will go into effect Jan. 1, 2017.
The Time-of-Use rate enables LPEA to better manage the flow of electricity and purchase wholesale power more efficiently in lower demand periods. To encourage TOU participation, LPEA financially rewards members for shifting electricity consumption to off-peak periods. Members must opt-in to participate in the TOU program.
As approved, during a 24-hour period, 16 hours will be off-peak, with members using electricity during those off-peak hours charged the 5.9 cent per kWh rate. Eight hours will be on-peak, billed at the higher 23 cent per kWh rate. All day, every Sunday will be off-peak, as will all day Thanksgiving and Christmas.
“With this enhanced TOU program, we believe most members can save 5 percent before even trying to shift their energy usage to the off-peak time periods,” said Dan Harms, manager of rates, technology and energy policy. “Members who make a concerted effort to use electricity in the off-peak periods could save up to 40 percent on their bills.”
Harms added that members shifting to Time-of-Use is a win-win for both consumers and their electric cooperative, noting, “Ultimately we believe LPEA will look to Time-of-Use rate structures for our entire residential membership.”
A 30-day comment period now follows the board meeting. The complete rate tariffs are posted at www.lpea.coop. For additional information, contact LPEA at 970.247.5786.
LPEA, a Touchstone Energy Cooperative established in 1939, provides to its more than 30,000 members, with nearly 42,000 meters, safe, reliable electricity at the lowest reasonable cost, while being environmentally responsible.