Save money by spreading energy use throughout the day

Published 9:16 am Wednesday, May 18, 2016

If you can keep from using a lot of electricity at once, you might be able to save money through a new alternate pilot program offered by the Oregon Trail Electric Co-op.

OTEC is conducting a volunteer study to determine whether charging customers based on the capacity of energy used, rather than just the total amount, will influence energy usage, General Manager Werner Buehler said.

The program charges a lower base monthly rate and about half as much for each kilowatt-hour used with an additional capacity fee based on how many kilowatts were needed during the highest 15 minutes of usage during the billing period. If people can spread their energy usage throughout the day to minimize the amount needed at any given time, they would be rewarded with a lower bill.

Buehler compared energy capacity to that of a vehicle engine: People pay a premium for an engine with the capacity to quickly accelerate up to 80 mph when passing, even though most of the time at 65 mph that capacity is not used. Similarly, he said, it costs an electricity company more to supply a high capacity to you — and your neighbor and the rest of the block during peak hours — because of increased infrastructure costs.

By not running, for example, an air conditioner, a dishwasher and an electric dryer at the same time, customers can reduce their needed capacity, which reduces the capacity needed to energize the rest of the block and the need for expensive, new transmission lines. This program provides an incentive for users to reduce their capacity with a lower electricity bill.

“With this voluntary pilot program, there will be an opportunity — other than saving kilowatt-hours — to separate demand for capacity into an optional rate schedule, giving members an opportunity to identify and shift their use of capacity and potentially save money on their electric, bill,” he said.

The program will not be a great fit for all households, however, so OTEC will work with customers to analyze their last 12 months of energy usage and model how the alternate program would affect their bill, he said. Knowing they are being charged for capacity, customers can modify their electricity usage to save more.

“We want them to be successful,” Buehler said.

The program requires a 12-month commitment from customers and must be initiated in 2016. Only 100 customers will be allowed to participate in the study, and about half of the slots are already filled.

For more information about the program or to check whether it might be a good fit for your household, contact the local OTEC office, 541-575-0161, 400 Patterson Bridge Road, John Day.

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