As we begin a new year, I thought it was appropriate to review our new rate structure, the EmPOWERment rate. Our analysis after the first few months is that more than 50% of our members have a lower power bill when compared to the old structure, with almost 20% seeing little to no increase in their bills. Together, approximately 70% of our residential customers have seen a bill decrease or minimal to no increase.

With the new rate structure, you now have more control over your bill than the previous flat rate structure, which was based on a higher kilowatt-hour (kWh) charge. Think of kWh as your car odometer, reflecting the number of miles traveled  on a road trip.

This new rate, which is revenue neutral for Blue Ridge,emphasizes shifting energy use of off-peak hours when costs are lower – almost 90% of the day. Your bill is now determined by your overall energy use and the time of day when you use it. 

This new rate reduces the kWh charge by about one third for all the energy you use. For 21 hours each day, you can use all the electricity you need at an energy cost of 9.442 cents per kilowatt-hour with now peak charge. For three hours each day in peak hours, you can save money by limiting the use of high-demand appliances such as the HVAC system, clothes dryer, water heaters and pool pumps.

Time of use charge

The new time of use charge, also known as the demand charge, is the highest SINGLE hour of energy used during peak hours within your billing period. This is measured in kilowatts (kW) at $13 per kW. This is a different unit of measurement from kWh. Think of kW as the radar gun the captures your top-end speed on the highway.

Peak demand has always been part of our power bill. Now it’s unbundled for you to see, making your bill more transparent than ever before. You’re billed the same way that our wholesale power bill at Blue Ridge Electric is calculated.

To reiterate, just ONE HOUR represents your monthly peak demand charge.

Money-saving tips

One way to keep your peak charge low is to avoid using major appliances simultaneously, such as your dryer and dishwasher. If you were to run only your dryer during one of the peak hours, on average, it would use roughly five kW, resulting in a peak charge of $65. A microwave oven working for one hour pulls approximately one kW. Other minor appliances such as a blender, vacuum, television, ceiling fan or refrigerator each use less than 0.75 kW.

Pre-heating your home outside of the peak hours before lowering the thermostat a few degrees ahead of 6 a.m. can result in savings. Programmable thermostats are an investment that makes saving money second nature by efficiently automating your HVAC system. We now have a rebate program for smart thermostats. For more information and money-saving tips, please visit blueridge.coop/empowerment.

We understand this requires some habit adjustment. Members can call (800) 240-3400 if you have questions about your energy use. Blue Ridge offers several tools and programs, including Peak Forgiveness, energy audits and alternative rate structures, that can help with your bill.

We are grateful for your feedback.

Jim Lovinggood

President and CEO