The demand charge is not a new charge. It has always been embedded in the energy rates. OCEC is now separating out the demand charge from the energy charge. This will allow OCEC to assign costs that are directly related to demand, and not based on total energy consumption. These are the costs related to maintaining the distribution system.
Members will still see an energy charge that is based on the total amount of energy they consume during a billing period. However, the energy charge will be reduced once the demand charge is separated out.
The new unbundled rate structure with separate demand and energy charges will allow Members to see exactly how much they pay for the energy they actually consume (the energy costs from PNGC Power, our wholesale power provider), and how much they pay toward the costs that OCEC incurs to deliver and distribute that energy to them.