PVREA’s basic, residential electric bill is fairly simple - members are charged a facilities charge, which covers the cost of the poles, wires, maintenance, administration and other costs, plus an energy charge which represents what it costs PVREA to purchase electricity. Although that energy charge on your bill is just one line - .09 cents per kilowatt-hour – the costs associated with that energy is much more complex.
It’s our job as your electric cooperative to be ready to provide as much electricity as our members need for their homes and businesses. So when you turn on your oven when you get home from work, or start a load of laundry, we make sure you have enough electricity flowing to your home for when you need it. As you can see, you behaviors play a big part in determining how much electricity PVREA needs to provide in order to keep the lights on in our community. That is where the term “demand” comes in.
PVREA is billed by Tri-State G&T, our wholesale power provider, based on kilowatt-hours used and the peak demand of our members. Peak demand refers to the time of day when the need for electricity is highest. This is typically during the evening when families return home from work or school, cook dinner and use appliances the most – what we often call “rush hour”. Using electricity during this rush hour period costs more to PVREA and, therefore, to our members.
Although your energy charge is .09 cents at any time of day, the cost for PVREA’s to deliver that electricity fluctuates every day, based on demand. PVREA is building programs for members to play an active role in keeping demand costs down – which results in keeping your rates affordable. Stay tuned for PVREA’s upcoming program, Rush Hour Rewards, where you can be a part of keeping your rate affordable and receive incentives for helping the cause.