Change is an inevitable part of life, but it’s human nature to be apprehensive when something familiar shifts to something different and new. Phones are a great example. As mobile phones have become more powerful and reliable, most members have decided to eliminate their landlines, but others have been reluctant to walk away from what’s comfortable and familiar.
When Kankakee Valley REMC announced we were switching from a flat rate structure to time-of-use pricing, some of our members were excited at the chance to take control of their energy costs. Others have been hesitant about the change. Some have even wondered why the board of directors would choose now to make this change.
The reality is that our co-op has made time-of-use rates available for many years. As we updated our meters, systems, and other technology, we can now roll this concept out across our entire membership.
The most significant way a co-op like ours differs from investor-owned utilities is that you’re not a customer. You’re a member. As a member, you have the opportunity to affect the decisions we make. You have the right to vote on the members of our board who oversee our operations and plan for the future in this ever-changing energy landscape. Our board members have heard the same message from members for years: they want to play a more active role in managing what they pay for electricity. After an extensive study and many months of discussions, the board decided the best way to do that is to switch from flat-rate pricing to time-of-use.
Some members may view this as a way for the co-op to generate more profits, but that’s not the case. As a not-for-profit cooperative, our mission is to serve our members, not to make money. Any revenue we earn beyond what’s needed to cover expenses is returned to you as capital credits. Our primary goal is to provide electricity at the most affordable rates possible for all our members. Time-of-use rates are based on what we pay for the wholesale electricity we deliver to homes and businesses. During peak times — like late afternoon and early evening on weekdays — the market cost of electricity is higher, so our new time-of-use rate reflects that. That’s one part of the time-of-use approach. The other part is lowering rates when wholesale prices are lower. The new time-of-use rate reflects that too.
Put another way, the new time-of-use pricing means you will pay more than the current flat rate during 15 “peak” hours each week. But you will pay less than the flat rate for a whopping 153 hours each week! Time-of-use pricing allows you to use electricity when the rates are the lowest. You can further reduce your bill by performing regular activities like washing clothes, washing dishes, or running your heating and cooling system in the hours when rates are lower. That means you will have more control over your electric bill than ever before.
We know that waiting until 7 p.m. to feed your family may not be practical. However, you can adjust the timing of doing your laundry, using the dishwasher, or charging your EV to save money. Find a routine that works for you. Even small changes can lead to savings. We encourage you to keep an eye on our Facebook page and website for tips on how to save by making simple adjustments to your habits. We will continue sharing valuable information, so stay connected and informed!
