Rate Design Change

For years, Big Horn REA has billed with a two-part rate structure, including the base facility charge and energy (kWh) charges. We will be moving to a three-part rate structure to better align Big Horn's cost recovery and give members more control over their monthly bill. 

Big Horn REA will introduce a new rate design for its members beginning in 2027. This rate change will modernize Big Horn’s rate structure to equitably recover operational costs across all the rate classes and provide members with another way to control their electric bills. 

Big Horn has educated its members to use less energy through energy efficiency and conservation to save money on their bills. Energy usage patterns have evolved over time and demand for the electric grid is greater than ever, especially during hours when people head home from their daily activities to cook and take care of household chores. With this rate design change, members can choose not only to save and conserve energy but also shift their electric usage to lower their peak demand and reduce their monthly bill.

Big Horn is providing its members with greater control by separating its current energy (kWh) charge, which currently combines the cost of total energy use with the cost of peak demand on the electric grid. Big Horn’s three-part rate structure will include the following components: service availability, energy usage (kWh), and peak demand (kW) charges.

This change will not only give members two ways to lower their bills, but will also promote rate equity among Big Horn’s members. Under this new rate structure, each member will pay for their contribution to Big Horn’s peak demand, independent of the amount of electricity that they consume.

This new rate will not create additional revenue for Big Horn. As a not-for-profit rural electric cooperative, Big Horn operates at cost.

Big Horn encourages members to become familiar with their electric bill and identify their current peak demand reading. Members may utilize their online portal and use the new mobile app to track current energy usage and strategize how to reduce peak demand. Future member education and communication will assist members with how to prepare for this change.

Peak Demand

What changed?

Better technology allows us to introduce a three-part rate structure that improves rate equity among members and breaks up the current energy charge into energy (kWh) and peak demand (kW) charges.

Energy (kWh) refers to the total amount of power used in a month and is measured in kilowatt-hours.

Peak Demand (kW) refers to the highest hourly usage during the month and is measured in kilowatts.

What is Peak Demand?

When electricity is at its highest demand, we call that PEAK. Peak demand puts stress on the grid, requiring more generation, transmission, and distribution infrastructure. The peak demand charge will fairly charge all members for their contribution to the peak. 

Don't Be Peaky!

You schedule meetings and lunches... Schedule your washing machine and dishwasher too! 

Peak energy demand is a hot topic, but what is it and how much does it impact electricity use? Simply stated, PEAK DEMAND is when energy consumption is at its highest.

In much of the U.S., energy use spikes in the summer and winter due to INCREASED ENERGY DEMANDS for indoor cooling and heating. In the summer, energy use spikes between mid- to late afternoon and evening. In the winter, energy use is higher in the early morning and late afternoon/evening.

Consider running major appliances during off-peak times to decrease strain on the energy grid. 

Changing the time of day you use energy can

  • Help lower your energy bills.
  • Avoid service interruptions or glitches.

Do your part to use energy wisely, especially when energy demands are high! 

Adjusting when you use electricity can help even out energy use and avoid service interruptions caused by high demand. 

Hidden Cost of Stacking Chores

Running multiple appliances at the same time can be costly. Many members tackle chores like, laundry, dishes, and cooking right after work or school, but running several appliances at once can increase your demand and raise your power bill under the new rate structure.

Simple shifts that make a difference:

  • Laundry: Move loads to run off-peak.
  • Dishwasher: Use delay start settings to run off-peak.
  • Cooking: Pre-cook ingredients or use lower wattage cooking appliances like toaster ovens or air fryers.
  • Showers: stagger times to avoid overlapping with laundry and cooking.
  • Appliances: Avoid running multiple large appliances at once during peak hours.