Simply put, a "Peak-Charge" is the same as saying "more expensive power"

Imagine LPEA's power grid as an intricate network of toll roads. On these roads, the electricity that powers your homes and businesses zips along, not in cars, but in the form of electrons. Just as with actual roads, there are times when there are traffic jams because too many people want to drive at the same time. When these instances occur on toll roads, you are charged more money for using the roads when more people want to use the highways. Less traffic means cheaper tolls, while more traffic means more expensive tolls. The theory is to create an incentive for people not to clog up the highways during busy times and, instead, commute during less congested hours of the day. This same theory is applied to transmitting electrons across power lines.

In the world of electricity, this "traffic jam" happens during the hours of 4 p.m. to 9 p.m. During these hours, when most people are home and using electricity, the demand for electricity spikes. If everyone tries to "drive" at the same time, not only does it strain the "road," but it also increases the cost of LPEA's "toll" (the cost of receiving electricity from our power provider, Tri-State Generation & Transmission).

Tri-State charges LPEA more for using power during these hours because it is more complex and expensive for them to supply large amounts of power during these hours. Most everyone in Colorado ramps up their energy use during these hours, which makes it harder to move electrons (and even find the electrons to power our grid) because they are in such high demand! Tri-State also wants to create an incentive for us to use less energy during these hours because it puts a lot of stress on the power grid in Colorado. If LPEA members use more energy during these hours, it results in a higher bill from Tri-State to LPEA. But if LPEA's members (YOU!) reduce their energy consumption, LPEA gets a lower bill from Tri-State and can pass those savings on to all of our members.

Benefits of Reducing Your Energy Use During These Times of Expensive Power

Reducing your energy consumption during these peak hours benefits both you and the co-op:

• Lower Your Costs: By using less power between 4 p.m. and 9 p.m., you can reduce your energy bill and save money. If you are on our General Service Rate, your power is $1.50 more expensive per kilowatt during these hours. By reducing your energy use during this time, you save money for each kilowatt you conserve!
• Lower LPEA Member Costs: As people use more energy during these expensive hours, LPEA's cost of receiving electricity from our power provider, Tri-State Generation & Transmission, goes up. If LPEA members started using less energy during these hours and shifting usage to cheaper hours, then LPEA would get a lower power bill from Tri-State. Because the Tri-State bill is LPEA's single biggest expense, reducing that bill can help keep LPEA's overall rates down. And that results in savings for all members!
• Less Strain on the Grid: When members reduce their collective consumption between 4 p.m. and 9 p.m., it helps ensure that the power grid remains stable while also reducing LPEA's need to build costly facilities to handle the larger peak load. This helps keep the lights on and saves money at the same time!
• Environmental Benefits: Because energy is in high demand during these hours in Colorado, it is typically coming from coal and gas plants. Shifting your energy use to before 4 p.m. (when renewable energy production is at its highest) results in a small carbon footprint for both you and LPEA!

It's in everyone's interest to manage our energy demands, especially during hours when energy is more expensive. Just as you wouldn't want to be stuck in a traffic jam on the road, ensuring we distribute our electricity usage evenly ensures a smoother, more efficient "drive" for everyone. So, the next time you think about running your dishwasher, and washer and dryer at the same time between 4 p.m. and 9 p.m., think about turning them on outside of these hours. You could save money on your energy bill and help LPEA not pay costly power to Tri-State, allowing LPEA to better manage our power supply costs.