Thanks to LPEA’s negotiations with power supplier Tri-State Generation and Transmission, members signed up for the Time-of-Use (TOU) rate are enjoying a lower cost when using electricity in “off-peak” periods. The TOU program is designed to reward members who shift their electricity usage to lower, off-peak periods.
“The good news, or unanticipated result if you will, is, we’ve analyzed that with the new Time-of-Use rate, ALL our members can benefit to some degree, even without having electric thermal storage (ETS) heating or timers on their electric water heaters,” says CEO Mike Dreyspring. “But I wanted to personally test that theory.”
The Dreysprings, who weren’t on Time-of-Use in 2015, asked LPEA’s energy management specialists to calculate their energy usage for the past year if the new TOU rate had been available, and they’d been signed up.
“With no changes in our usage in the past twelve months– no shifting big loads to off-peak hours– if we’d been on the current TOU rate we would have saved $100 on our electric bill in 2015,” says Dreyspring, who has natural gas home space and water heating. “We’ve signed up for Time-of-Use now, and we’re going to pay more attention to when we use electricity. I bet we’re going to realize even more savings this year, and our members can do this too.”
“With a reduced ‘off-peak’ Time-of-Use rate, we do hope it’s an incentive for members to shift their electricity usage to those lower cost time periods,” says Dan Harms, manager of rates, technology and energy policy. “One of the goals we have in managing electricity distribution is to level off usage and not experience ‘spikes’ in demand for power. Through the Time-of-Use program our members can help us, and we do want to financially reward our members for shifting energy use to ‘off-peak’ periods.”
The “off-peak” rate for members signed up for the TOU program is 5.9¢ per kWh. “Off-peak” hours are 1 p.m. to 5 p.m. and 11 p.m. to 7 a.m., plus all day Sunday, and Thanksgiving and Christmas. The “on-peak” rate is 16.8¢ per kWh. The base charge of $21.50 per month to cover LPEA’s fixed costs is consistent for all members.
“As Mike noted, it doesn’t take much to realize savings on the Time-of-Use program, but the more you shift, the more you can save,” says Harms.
LPEA members not currently on TOU, who are interested in evaluating the possible benefits of the program unique to their usage, are encouraged to call LPEA’s Energy Management Advisors, 970.247.5786. Learn more about the program at www.lpea.coop.