Currently, Heber Light and Power customers pay a flat rate for their electricity no matter what time of day they use it. But customers who opt-in to the new program will pay one rate for electricity used during the hours of peak usage, and another, lower rate for power used during off-peak times.
The hours with the higher rates will be from 3 p.m. to 10 p.m. on weeknights only.
“It’s roughly double what the off-peak rate would be,” said Jared Wright, the community relations manager for Heber Power and Light.
He said the program will incentivize customers to shift some habits in a way that will put less strain on the electric grid.
“Just a simple example is when you load your dishwasher in the evening, if it has a timer, set it to go after 10 p.m.," Wright said. "Or wait and start it in the morning, instead of having it in that 3 p.m. to 10 p.m. high peak time frame.”
He said power is more expensive for the company to purchase from the grid during those hours. So customers who opt-in and shift their electricity usage will save money themselves, and others will benefit, too.
“It actually helps everybody because any kilowatt hour we don't have to buy helps to stabilize and keep rates low,” Wright said.
The fee structure will also be different during the summer months. Rates will be higher from June through September than for the other eight months of the year.
Wright said that, while the program can save customers money on balance, they would likely see higher power bills during the summer. But customers who want to game the system by opting in to the program in winter and then opting out for the summer will be disappointed.
“If someone does opt in, they are required to be on the rate for 12 months, at which point, they can opt out if they'd like,” he said.
Wright said he expects to see about 5% to 10% of customers opt in over the next few months. The number using this fee structure will likely be substantially higher a couple of years from now. The company’s board of directors is considering whether to make the program mandatory for all customers, or something they would have to opt out of.
“That has yet to be decided, but by 2025, we will change that away from an opt-in,” he said.
So the program is essentially in a pilot phase to prepare for the broader adoption of a tiered rate structure.
The company will be “making sure we have the rates correct," Wright said. "And doing further studies, not only this year, but next year — especially next year — as we start getting some data. And then we'll just fine tune it.”
Wright said he estimates that a family currently paying $150 per month on their electric bill could expect to save between $60 to $100 per year.
