Time of use rate is based on the fact that wholesale electricity prices are constantly changing depending on when you use the energy. Energy costs are higher during peak times of the day, when members are using more energy. Energy costs less when demand is lower, such as late evening or early mornings. Simply put, with time of use rate structure timing is everything, members could pay more when energy’s expensive and less when its cheaper.
Time of Use FAQs
KV REMC has traditionally offered a flat rate for energy, charging the same per kWh regardless of the time of day. However, this approach doesn’t align with how the co-op is billed for energy. Just like in any market, increased demand leads to higher costs. With the standard rate, while members paid a consistent per kWh rate, the co-op faced fluctuating charges based on demand.
Under the new rate structure, your energy costs will better reflect these changes. When you use energy during peak times, the rate will be higher to match the increased charges we incur. When you use energy during off-peak or super off-peak hours, you’ll benefit from a lower per kWh rate.
Monday through Friday only
On-Peak: Monday through Friday from 4 p.m. to 7 p.m. CT
Off-Peak: 4 a.m. to 4 p.m. and 7 p.m. to 10 p.m. CT
Super Off-Peak: 10 p.m. to 4 a.m. CT.
Excluding Holidays: *The following general holidays shall be excluded from the on-peak periods: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. In the event any of these holidays occur on a Saturday, the holiday remains on that Saturday. In the event the holiday occurs on a Sunday, the following Monday shall be the holiday.
While there are three peaks on the weekdays, on weekends and holidays there is off-peak and super off-peak times. The difference in cost between these peaks is very small to all members more freedom on the weekends.
The key to saving money is lowering your usage during on-peak time. Here are a few ways to do that.
- Using delay start or timers on your appliances for them to start at off-peak times or run them early in the morning during the super off-peak is a great start.
- Installing a smart thermostat and pre-cool or pre-heat your home during off-peak times to reduce your HVAC load during peak times. A well insulated home could allow you to turn off the air conditioner or heat and stay comfortable until the peak decreases.
- Use features available on an electric car to allow for charging during off-peak or super-off peak hours.
Visit our website and click on the Time of Use link under the My Account tab. A rate calculator, videos and ways to save energy are available for your review.