Our energy future is transforming. To meet state requirements, and the needs of a growing community, we must all work together to use energy responsibly. New time-of-day electric rates - which will be referred to as energy-wise rates - will play a critical role in meeting our regulatory requirements (e.g., Clean Energy Plan) and achieving resource plan goals.
We plan to propose this rate as the new 'standard' electric rate for customers, beginning in late 2025. The proposal will be part of the 2025 rate case and, if approved, would be effective October 1, 2025. The full implementation timeline is to be determined.
With energy-wise rates, customers can help reduce high demand and the need to build additional sources for electric generation, such as power plants. It will reduce the need to purchase power during peak periods when it is most expensive.
The new standard energy-wise option will apply to most residential and business customers with smart meters.
Click here for information about the existing time-of-day rate, which is available now for customers with smart meters.
Benefits
Energy-wise rates give customers rate options to help manage their bill. These rates provide a more affordable electric rate during times when demand is low, called "off-peak" hours.
These rates are designed to shift demand away from peak hours. Generating electricity during peak hours often relies on fossil fuels, which contribute to greenhouse gas emissions. By shifting use to non-peak hours, customers help to reduce emissions and reduce environmental impact.
Electric capacity and energy cost vary depending on the time of day and season, based on system congestion and availability. Moving to Energy-wise time-of-day rates better aligns our costs with the rates customers pay, creating a more equitable rate structure that better reflects how they use energy.
On-peak vs. off-peak
With energy-wise rates, customers pay different rates for electricity based on the time of day it is used.
- Rates are lowest on weekdays before 5 p.m. and after 9 p.m., on weekends, and on holidays. These times are called off-peak.
- Rates are highest during weekdays from 5 p.m. to 9 p.m. These are called on-peak times.
On-peak and off-peak rates give customers more control over their bill since they can shift electricity use to times when it costs less.
Rates will be higher in summer when demand is highest (June-September) and lower in winter (October-May).
Residential Energy-Wise rates
Energy-wise: The proposed new standard rate option for customers with a few exceptions. It includes on and off-peak periods.
Energy-wise Plus: This option is similar to Energy-wise but includes an even lower rate during off-peak "saver" periods, and a higher rate during critical peak events. The off-peak "saver" period is 9 a.m. - 1 p.m., every day, including holidays.
Seasonal Fixed Rate: The fixed rate does not have on or off-peak periods. It is a fixed rate that is set higher than the off-peak Energy-wise rates but lower than on-peak rates. Rates will be higher in summer (June-September) and lower in winter (October-May). This will be the standard option for residential/small business customers who do not have a smart meter.
Commercial & industrial customers
Upcoming changes include:
- Alignment of time periods
- New commercial rate structure
- Addition of a commercial demand charge
Most industrial customers are already on a standard time-of-day rate.
As part of the project, we are updating the on-peak and off-peak time periods to reflect current demand. As a result of this change, business customers will see a reduction in annual on-peak hours.
|
Current |
Proposed |
| Summer: April - September (11 a.m. - 6 p.m. weekdays) | Summer: June - September (5-9 p.m. weekdays) |
| Winter: October - March (4-10 p.m. weekdays) | Winter: October - May (5-9 p.m. weekdays) |
Demand charges
Energy-wise rates include a demand charge for business customers with a maximum demand greater than or equal to 10 kilowatts. Demand charges better align with the cost of providing reliable electric service and the fixed cost of maintaining infrastructure.
Timeline
The new rates will be proposed as part of the 2025 rate case.
- Aug. 21, 2024: Proposed budget and preliminary rate case presentation to Utilities Board.
- Oct. 22, 2024: First reading and hearing of the budget and rate case at City Council.
- Nov. 12, 2024: Second reading and final vote of budget and rate case at City Council.
- Oct. 1, 2025: (Pending approval) new standard rate effective for new and transfer customers.