2019 Rate Design Change

2019 Rate Design Change

One of the missions of Sac Osage Electric is to provide service to our members at a price where everyone pays their fair share. The traditional “load curve” that models a typical residential electrical usage pattern is or will be impacted by distributed generation, plug-in electric vehicles, on-demand water heaters, and other lifestyle changes to a point where the current two-part rate is becoming less effective at providing revenue at a cost that’s equitable to all of our members. Therefore, we are changing from the current two-part rate to a new four-part rate scheduled to go into effect upon completion of programming and testing. Although this rate is designed to be revenue neutral, some members may see an increase and others a decrease in their monthly cost, depending upon the consistency (or “load factor”) of electrical use.

The four parts are as follows

Service Availability Charge of $30 ($33 for seasonal accounts)

  • Provides revenue to cover costs such as maintaining right of way, and any other expenses not directly related to the delivery of electricity.

Energy at $0.062/kWh

On-Peak Demand Charge at $6.36/kW

  • The On-Peak kW Demand value will be the largest monthly one-hour average demand between the hours 6 AM – 9 AM and 4 PM – 7 PM. Approximately forty percent of Sac Osage Electric’s power costs is in demand charges. Reducing this demand charge by utilizing appliances such as a washer, dryer, and oven (and raising the air conditioner thermostat within those afternoon hours) outside of the hours shown above will lower our costs and we will pass those savings on to you.

Off-Peak Demand Charge at $1.50/kW

  •  The Off-Peak kW Demand value will be the largest monthly one-hour demand between the hours 9 AM – 4 PM and 7 PM – 6 AM. This value multiplied by the off-peak demand charge provides revenue to cover our “fixed costs” such as poles, wires, and other equipment necessary to provide electrical service.

 This new design replaces the current declining block rate that has been in place for many years and encourages and promotes conservation by rewarding members that utilize electricity more efficiently with lower monthly costs. Most importantly it contributes to the goal of “Fairness down the lines” where everyone pays their fair share.

Use Smarthub to see your hourly readings now and begin to control your energy usage.

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