Rates - Priority 3

I have a net-metered distributed generator at my house, will it help lower my demand?

Yes. If your Member-owned generator is producing energy during your peak usage the net value is recorded and your peak demand is lowered by the generation. For our most common Member-owned net-metered projects, rooftop and ground-mount solar, we would expect a reduction in monthly peak demand during the summer months. These same generators generally do not produce power during winter peak demand periods we see on our system. These winter peak demand periods are 6am-9am, typically.

How will Members know whether they will move rate classifications based on annual peak demand?

OCEC will begin putting monthly peak demand on the monthly bills as soon as possible. We are working with our software vendor to complete that change. OCEC encourages Members to review their monthly peak demand during the upcoming winter to determine whether they would be placed in a different General Service rate classification starting next January 1, 2026.

OCEC staff will also be reaching out to Members who may see a rate classification change of more than one (i.e. G1 moving to a G3) and discussing their specific situation with them. The OCEC Board has approved not moving any one Member more than one rate classification higher per year.

What impact will this have on my bill?

For the majority of Members this will not have any impact on their bill and the majority of Members will stay within their same rate class. For some Members, especially those with high peak demand usage but infrequent energy usage or homes with net metered distributed generation, this change may result in moving rate classifications into a higher General Service rate.

How does OCEC define annual peak demand?

Annual peak demand is the highest recorded demand billing determinant for the previous calendar year. The demand billing determinant is the highest average kW across a fifteen-minute period, the same billing determinant that is in use currently for demand charges.

How does OCEC define annual peak demand?

Annual peak demand is the highest recorded demand billing determinant for the previous calendar year. The demand billing determinant is the highest average kW across a fifteen-minute period, the same billing determinant that is in use currently for demand charges.

What is OCEC proposing to add as an annual peak demand threshold to the existing annual energy threshold?

Beginning on January 1, 2026, OCEC proposes to add annual peak demand thresholds in addition to the energy thresholds to the General Service rate classes in the following amounts:

  • G1 – Up to 20kW of annual peak demand
  • G2 – Over 20kW and under 40kW of annual peak demand
  • G3 – Over 40kW and under 100kW of annual peak demand
  • G4 – Over 100kW of annual peak demand

These annual peak demand thresholds will be added to the existing annual energy thresholds, and OCEC will place Members in the highest rate class based on annual energy usage or annual peak demand.

How does OCEC currently place members in the different General Service rate classes?

OCEC has 4 General Service rate classes that Members are placed in based on annual energy usage over the previous year:

  • General Service 1 (G1) – Up to 1,200 kWh per month (up to 14,400 kWh per year)
  • G2 – 1,200 kWh to 5,000 kWh per month (14,400 kWh to 60,000 kWh per year)
  • G3 – 5,000 kWh to 200,000 kWh per month (60,000 kWh to 2,400,000 kWh per year)
  • G4 – above 200,000 kWh per month (2,400,000 per year and above)

At the end of each year OCEC staff reviews annual usage and places Members in the appropriate rate classification. A notification is sent to each Member being moved from 1 rate classification to another.