Northern Electric Cooperative is changing its rates for members who have their heating and cooling system on a separate meter. The rates will be adjusted on a seasonal basis starting on April 1, 2021.
Northern Electric members who have a second meter – also known as a submeter – currently pay 4.7 cents per kilowatt-hour (kWh) for the energy used exclusively by their heat pump or heating and cooling system. The new rate structure will adjust ‘winter’ rates and ‘summer’ rates for all members who have a submeter. The rate adjustments are being implemented following a cost-of-service study that was recently completed by a third-party independent engineering firm.
The new ‘winter’ rate will remain at 4.7 cents for all members with submetered heating and cooling from November 1 – March 31. The new ‘summer’ rate will be billed at a higher level during the months of April through October.
Electric Heat with Load-Controlled Air Conditioning
(Rates BR10, BR11, BR17)
- 'Summer' Submeter Rate - April 1 - October 31 -- .066 cents per kWh
- 'Winter' Submeter Rate - November 1 - March 31 -- .047 cents per kWh
The ‘summer’ rate will be 6.6 cents per kWh from April 1 – October 31 for members who participate in the air conditioning load control program. Those members voluntarily allow Northern Electric to cycle their air conditioning unit on and off at 15-minute intervals when the grid is experiencing high demand during the summer. Members with a load control unit installed on their air conditioning system fall under rate classes BR10, BR11, and BR17. Members can verify their rate class by looking under the ‘rate’ column which is located in the middle of their billing statement near their account number and location number.
Electric Heat with Uncontrolled Air Conditioning
(Rate BR12)
- 'Summer' Submeter Rate - April 1 - October 31 -- .093 cents per kWh
- 'Winter' Submeter Rate - November 1 - March 31 -- .047 cents per kWh
The new ‘summer’ rate for members who have submetered electric heat but do not participate in the air conditioning load control program will be 9.3 cents per kWh during the ‘summer’ months. This is the existing normal kWh rate for all other energy used in the average home. The ‘summer’ months have been adjusted to include April through October. These members will still get the benefit of the 4.7 cents per kWh heat rate from November 1 – March 31 but any heating and cooling costs recorded on the submeter during the other months of the year will be billed at the normal 9.3 cents per kWh level. The co-op rate class for these members is BR12.
Demand Rate with Electric Heat and Air Conditioning
(Rate BR18)
- 'Summer' Submeter Rate - April 1 - October 31 -- .057 cents per kWh
- 'Winter' Submeter Rate - November 1 - March 31 -- .047 cents per kWh
Members who are billed both a monthly demand charge and an energy charge will also see a change to their seasonal submetered heating and cooling rate. Members who fall into this class will pay the current 4.7 cents per kWh heat rate from November 1 – March 31 and then pay the normal 5.7 cents per kWh energy charge the rest of the year. Members in this rate class already pay 5.7 cents per kWh for all other energy use on their main meter. This change still gives members the benefit of the heat rate in the winter but their submeter will now be billed at the same level as the rest of their energy use from April 1 – October 31. However, the co-op will still subtract any electric heat use during the months of April and October from a member’s demand charge. The co-op rate class for these members is BR18.
These rate changes will take effect on Thursday, April 1, 2021. If you have any questions about these changes please call the Northern Electric office at 605-225-0310.