Horry Electric Cooperative’s new energy rate structure went into effect this month. Instead of a flat rate, members will now pay a reduced rate most of the month and a much higher rate for one hour.
“This restructure was designed to be revenue neutral, meaning it is not to bring in any additional revenue to the cooperative,” Horry Electric Cooperative public relations and marketing coordinator Jennifer Cummings said.
Under the new model, 3 hours each day are considered peak hours. From April 1 to Oct. 31, peak hours are from 3 to 6 p.m. From Nov. 1 to March 31, peak hours are from 6 to 9 a.m.
Within the peak window, the one hour during which a consumer uses the most electricity will be charged at a higher rate. Every other hour of the month, including peak hours that aren’t the single highest-usage hour, members are charged a rate lower than the former flat rate.
The nonprofit cooperative purchases power wholesale from Central Electric Power Cooperative and is billed for the hour that members use the most power, Cummings said. The new pricing structure will charge members the same way.
“The purpose of this restructure is to align members’ bills with the way that Horry Electric itself is billed, and to give members control of their bill,” Cummings said.
Residential consumers, who Cummings said make up about 90% of the cooperative’s members, will be charged $12 per kilowatt for their highest-usage hour during the peak window. The rest of the month, residents’ energy will be charged at about $0.07 per kilowatt hour. However, because residential members also receive a $0.01 credit per kilowatt hour, the charge is reduced to about $0.06 per kilowatt hour.
In total, residential members are now charged a $0.95 account charge everyday, $12 per kilowatt for the highest-usage hour during the peak window and roughly $0.06 per kilowatt hour for every other hour in the month.
The way that usage is measured is different for the highest-usage hour and the rest of the month. The peak hour is charged based on kilowatts, which measure the rate at which a member uses electricity. The rest of the time is charged based on kilowatt hours, which measure how much power a member uses over a period of time.
“For years, when members called in and they asked our service representatives, ‘What can I do to save on my bills?’ The only option was to tell them, ‘Use less,’” Cummings said. “Now with this restructure, we’re able to give them opportunities and tips on ways to save that put them in control of their power bill.”
To keep their electric bills low, members should monitor usage during peak hours. Things like HVAC systems, electric water heaters, electric clothes dryers, pool pumps and electric vehicle chargers tend to use lots of energy, so using them outside of peak hours will save money.
Members can compare their account’s restructured rate and estimate their bill based on the new model on the Horry Electric Cooperative website .
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