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.