Beginning Oct. 1, Energy Wise customers will benefit from lower winter on-peak rates, and all customers will see a decrease in fuel costs, public power utility Colorado Springs Utilities recently reported.
Energy Wise rates reward customers for shifting some of their electric use to lower-cost hours when demand is lower. From Oct. 1 through May 31, accounts switch to Energy Wise winter rates.
For residential Energy Wise customers, the winter on-peak rate decreases by nearly 50%.
• Summer on-peak rate: approximately $0.29 per kilowatt-hour (kWh).
• Winter on-peak rate: approximately $0.15 per kWh.
The off-peak electric rate remains the same year-round.
• Off-peak rate: approximately $0.07 per kWh.
• Weekdays before 5 p.m. and after 9 p.m.
• All day on weekends and most holidays.
Compared to the previous flat-rate structure, residential Energy Wise customers pay about 5% less on average during winter months (October through May).
During summer months, the utility’s electric demand peaks, and so do its costs to generate and purchase electricity. This is why on-peak rates are higher in summer and lower in winter, it noted.
Energy Wise has on and off-peak hours:
Off-peak (lowest-cost hours)
• Weekdays before 5 p.m. and after 9 p.m. and all day on weekends and most holidays.
On-peak (highest-cost hours)
• Monday through Friday, 5 p.m. to 9 p.m.
Fuel rate decrease takes effect Oct. 1
Also on Oct. 1, the utility decreased the electric fuel cost adjustment. This change will lower bills by $1.54 per month for the average residential customer.
Fuel cost adjustments are tied to the cost of fuel and purchasing power. "As a not-for-profit, community owned utility, we pass fuel cost changes directly to customers," it noted.
This decrease is possible because of savings achieved through participation in the Southwest Power Pool, the regional organization that coordinates the flow of electricity across a multi-state region, including Colorado.
"Our participation in SPP provides access to more energy resources, enhances grid reliability and helps deliver value to customers through increased operational flexibility and efficiency," the utility said.
Since joining SPP in April, the utility has achieved about $7 million in savings through June.
"When we generate electricity for less than the market price, we can sell excess power to other communities, helping maximize the value of our resources. These savings create value that can be returned to customers through lower fuel costs," it said.
