Major rate design changes implemented Feb. 1, 2009
as a result of 2008 General Rate Case

1. Are there any rate design changes for small commercial customers?
2. Are there any changes in the rate structure for large commercial and industrial customers?
3. What about Schedule 19, Large Power Service?

1. Are there any rate design changes for small commercial customers?

Yes, in addition to the existing tiered energy charge rate during the summer months, customers on Schedule 7, Small General Service, will now also have an energy charge tiered rate for non-summer months. Currently, customers have a block rate which increases the Energy Charge when a customer uses more than 300 kWh each month only during the summer. Schedule 7 customers also have a tiered rate above 300 kWh during non-summer months. Because energy costs are higher in the summer months than in the non-summer months, the summer tiered rate over 300 kWhs is set slightly higher than the non-summer tiered rate. The purpose of this tiered rate structure is to send a signal to encourage customers to use electricity efficiently and wisely. 

2. Are there any changes in the rate structure for large commercial and industrial customers?

All customers taking service on Schedule 9, Large General Service at the Primary and Transmission service level have time-of-use rates. This means that instead of having one flat energy charge for summer months and non-summer months, customers will now pay energy charges that have three time periods during each weekday in the summer and two time periods during each weekday in the non-summer months. In addition, customers will have a new on-peak demand charge.

Currently, all Schedule 19 customers are on time-of-use rates which began in 2004. These time-of-use rates will provide the economic signal that energy is more costly during both the peak hours of the year and the peak months of the year. It is anticipated that time-of-use rates will encourage customers to reduce or shift their energy use to the lower priced off-peak time periods.

Customers taking service on Schedule 9 at the Secondary service level have no rate design changes.

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3. What about Schedule 19, Large Power Service?

The basic time-of-use rate design structure for Large Power Service customers will stay the same. The only difference is that charges during our peak summer hours have been emphasized. This means that both Energy Charges and Demand Charges are higher during the On-Peak time block relative to the Off-Peak time block when compared to previous rates. This will provide an increased incentive for customers to reduce or shift load during the summer months, the company’s most expensive time to provide power.