From the CEO: Time-of-use rate helps to manage energy resources

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Posted on Oct 08 2024 in Kankakee Valley REMC
Kankakee Valley REMC CEO Scott Sears
SCOTT SEARS CEO

At our recent Annual Meeting, we shared some big news: everyone will be moved to a time-of-use (TOU) rate plan. I want to take a moment to explain what this change means for you. This new rate plan marks an important step in helping your co-op manage energy resources more efficiently and empowers you to take control of your electric bill.

Why the change?

The energy landscape is changing. As demand fluctuates throughout the day, the cost of generating electricity also changes. Currently, everyone is charged a flat rate for electricity regardless of when it is used. During peak hours, when many people use electricity simultaneously, like when everyone is returning home from work and school, the cost to the co-op to purchase energy is significantly higher.

We’re introducing three TOU rate periods to align with our energy pricing throughout the day. These periods are:

  • ON-PEAK: Monday through Friday, from 4 p.m. to 7 p.m. CT. Energy demand is highest when people return home from work or school to cook dinner and use other appliances.
  • OFF-PEAK: Monday through Friday, from 4 a.m. to 4 p.m. and 7 p.m. to 10 p.m. CT. This timeframe usually has lower energy demand and less expensive energy costs.
  • SUPER OFF-PEAK: Monday through Friday from 10 p.m. to 4 a.m. CT. These hours represent the times of lowest energy demand and cost.

 There are three peaks on weekdays. On weekends and holidays there are only off-peak and super off-peak times. The difference in cost is very small, allowing you more freedom on the weekends.

What does this mean for you?

Recognizing that adapting to change takes time, we will gradually implement the new TOU rates. In your October bill, you will see the kilowatt hours you use during each peak period.

Although all kilowatt hours are billed at the same rate at this time, this feature will allow you to see your usage patterns. See page 7 for an example of the new look to your bill.

Starting in March 2025, the rate for each kilowatt hour used in each peak time will change. Further adjustments will follow in June, September, and December. We are taking a phased approach to give you ample time to adapt your energy usage times and fully benefit from the new rate structure.

We understand this is a significant change, but we’re here to help you adjust and save on energy costs. Visit our website under the My Account tab for resources, videos, a rate calculator, and tips to shift your energy use for savings. We’re committed to making this transition smooth and supporting you every step of the way.