In July, Mountain View Electric Association introduced new rate options for residential and small power members, along with an open enrollment period through October 15. Since then, member questions have helped us better understand where additional information may be helpful and we have expanded the rate options available to residential and small power net meter accounts. This month, let’s take a look at the options that are available to residential and small power members, including net meter accounts, and the question that is asked most frequently: What is the difference between the Demand Rate and the Time-of-Day Rate?
The simplest way to think about it is this: The Timeof-Day Rate focuses on when you use electricity, while the Demand Rate focuses on how much electricity you use at the same time.
Under the Time-of-Day Rate, the price of electricity changes based on the time of day. On-peak hours are 5-9 p.m., Monday through Friday, when electricity typically costs more. If your household can shift more of its energy use outside those hours, this option may be a good fit for you.
The Demand Rate, which will become the default residential and small power rate beginning with October use on November bills, works differently. It doesn’t ask you to avoid using electricity during a specific time of day. Instead, it encourages you to spread out the use of major appliances and equipment. Approximately 80% of our members are expected to see little or no change under the Demand Rate. Your monthly demand is based on the highest one-hour period of electricity use during the billing cycle, Monday
So, why are we making this change? As a member-owned cooperative, MVEA’s rate changes are designed to better control costs for everyone, as fairly as possible. Approximately 60 cents of every dollar MVEA collects goes toward purchasing power. Increasingly, what we pay for that power is influenced not only by how much electricity our members use, but by the demand placed on the electric system when a lot of electricity is needed at once.
We also want members to have opportunities to manage their costs. On the Demand Rate, something as simple as waiting until the dishwasher finishes before starting the clothes dryer can make a difference. On the Time-of-Day Rate, shifting those same activities outside the 5-9 p.m. weekday peak period may help lower your bill.
So, which option is right for you? We have a tool to help you make that decision. MVEA’s online rate comparison tool uses your actual energy-use history to compare the options and show how your bill may differ under each rate.
I encourage you to explore the comparison tool, learn more about your options, and make your selection by October 15. Visit mvea.coop/rates or call (800) 388-9881. We’re committed to providing the information and resources you need to confidently choose the rate option that’s right for you.
By Ruth Marks, CEO
