Revenue Increase Frequently Asked Questions (FAQ’s)
Q: When does the new rate structure begin?
A: The new rate structure begins on Wednesday, April 1, 2020. The new rate structure charges will be included on the May electric bills.
Q: Is the demand charge an average of peak demand from 4-9 p.m.?
A: The peak-power charge (demand) is the maximum measured hourly peak demand measured over an hour within the window.
Q: The Time-of-Use (TOU) customers are already paying .233 cents per kilowatt hour for on-peak pricing from 6-9 a.m. and 5-10 p.m. Monday through Saturday. Does this mean the peak-power rate charge of $1.50 per kilowatt will be added to the TOU customers from 4-9 p.m.?
A: The peak-power rate charge does not apply to TOU customers. If you are interested in understanding more about Time-of-Use, please contact LPEA at (970) 247-5786.
Q: What is Time-of-Use?
A: Time-of-Use provides members with the opportunity to shift your use of electricity to the lower cost periods during 16 hours in a 24-hour day, Monday through Saturday, plus ALL day Sunday, Thanksgiving and Christmas. During these periods, you are billed for your electric usage at the off-peak rate – that’s the low-cost rate. While it may seem counter-intuitive for your electric cooperative to encourage you to purchase electricity during the lower cost time periods, you are helping us manage the flow of electricity across our entire system. The more of your electricity usage you can shift to the off-peak periods, the more money you will save.
Q: What are the benefits of the Time-of-Use program?
A: Choice. TOU has always been an optional rate tariff that provides choice to our members to help them control their costs by changing how they use energy. We have a tool that can compare the TOU rate with the General Service (peak-power) rate to help each member know which rate is best for their energy usage. Contact LPEA at (970) 247-5786 and speak to a Customer Service Representative and ask them to provide you with a bill comparison between Time-of-Use and General Service (peak-power).
Q: Why didn’t the Board of Directors vote to raise the base or demand charges instead of adding a new rate?
A: LPEA wants to put more control of the rate increase in the members hands. Members have personal choice on their own energy usage and thus on their bill. If we just raised the base rates, our members wouldn’t have any ability to manage their own cost. Raising the energy rate would discourage the use of electric vehicles and other beneficial electrifications.
Q: How can you say members will have a more active role in controlling their energy costs?
A: An example: If a member who normally does their laundry during the hours of 4-9 p.m., does it at a time when electricity cost is lower, they just lowered what they would have paid. If the rate increase was put on the normal energy rate, members would not be able to affect their costs by changing when they do their laundry or run the dishwasher. Turn on the big appliances before 4 p.m. or after 9 p.m.
Q: Did Tri-State Generation and Transmission (Tri-State) have a wholesale power rate increase? Is Tri-State the reason we are having a revenue increase?
A: No, Tri-State didn’t have a rate increase. The revenue increase for LPEA is related to inflationary costs of running the business and reinvestment in an aging electrical system to improve reliability and safety while preparing for the future.