Board Approves Staff-Recommended Changes To Rate Design

During the May Board meeting, staff presented a proposed change in the Rate Design. Specifically, Priority #3 – Implement an annual peak demand (in kW) threshold in addition to annual energy thresholds for placing members into G1 to G4 rate classes.

The current proposal sets the threshold of annual peak kW higher than originally considered. The new threshold for the rate classes is as follows:

  • G1: up to 20 kW (previously 15 kW) or up to 1,200 kWh per month average
  • G2: Above 20 kW (previously 15 kW) and below 40 kW (previously 30 kW) or between 1,200 kWh and 5,000 kWh per month average
  • G3: Above 40 kW (previously 30 kW) and below 100 kW (previously 60kW) or between 5,000 kWh and 200,000 kWh per month average
  • G4: Above 100 kW (previously 60 kW) or above 200,000 kWh per month average

Additionally, OCEC will build a “grace” into the policy to allow for one-year anomalies. If a Member exceeds the annual peak kW threshold by 1kW or less or exceeds the annual average by 200 kWh or less they can remain the same rate class. If they exceed more than 1 year, their rate class would be adjusted.