Midwest Energy Holding Public Meetings on Proposed Electric Rate Changes | News

Midwest Energy Holding Public Meetings on Proposed Electric Rate Changes

September 29, 2022

Midwest Energy is proposing a new three-part electric rate structure for residential and small business (General Service Small) featuring a customer charge, energy charge and a demand charge and would begin Jan. 1, 2023.

The proposed rate changes would be revenue-neutral for the cooperative and would be phased in over a period of four years. As demand charges are introduced, energy charges will decline each year, offsetting much (in some cases, all) of the demand charge, resulting in a $0 monthly increase for an average residential customer.          

Currently, most Midwest Energy residential and small business customers have a two-part rate structure; a customer charge, which is a fixed $28 per month charge for all residential customers, and an energy charge, which is based on the volume of kilowatt hours of electricity used during the month.

The proposed rate change would introduce a third component, a demand charge. Demand refers to the amount of electrical power being used at a given time. While the energy charge is based on the volume of electricity used in kilowatt hours (kWh), demand is based on the intensity at which energy is used (or the “demand” one puts on the grid) in kilowatts (kW).  

The proposed rate structure sends a price signal for demand, which could lower the cooperative’s costs for system capacity, resulting in lower costs for all customers in the future.  Additionally, by adding a demand component to bills, customers will have two ways in which to control their energy savings: through managing their demand, as well as using energy efficiently.

Public information meetings about the new electric rate proposal are scheduled for October. The locations are spread throughout the service area to give as many members as possible a chance to attend. All Midwest Energy electric customers are encouraged to attend.

Colby:  October 11, 6:30 p.m., Colbly Community College, Student Union
Kinsley:  October 18, 6:30 p.m., City Hall, Community Room
Great Bend: October 19, 6:30 p.m., Great Bend Front Door, 1615 Tenth St.
Hays:  October 20, 6:30 p.m., Hilton Garden Inn, 221 W 43rd St.

For more information on the proposed rates, visit www.mwenergy.com/residential/demand_rates.

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