Residential Demand Charge
In February 2019, FEC’s Board of Trustees first announced that residential bills would include a demand charge. The residential demand charge collects costs more accurately and more fairly from each of FEC’s residential members because your Co-op pays a premium for power used during peak hours. It also gives members more control over their power bill because they can reduce their demand by shifting usage to off-peak hours. We hope that, over time, this new rate structure will help our members use energy more wisely. The reality is, when we all use less energy during peak hours, we all save money.
June 2020: Announcing 0% rate revenue increase for the 2nd year in a row
Flathead Electric Cooperative’s (FEC’s) Board of Trustees is pleased to announce that, for the second year in a row, they have approved a 0% rate revenue increase for all rate classes for the coming year.
The Board also approved a revenue-neutral change to the residential rate which includes a decrease in the Energy Charge (kWh) and an increase in the Demand Charge (kW).This adjustment is designed to more fairly collect the Co-op’s costs and give members more control over their electric bills. With this change, most residential members’ bills will decrease or increase by less than two percent, depending on how they use electricity.
The new rate will be reflected on residential electric bills issued on or after June 1, 2020.
Residential Energy Charge – Reduced
FEC’s Energy Charge (the amount billed for each kilowatt hour (kWh) consumed during a rate period) will change as followed:
- 1.2% decrease for the first 0-600 kWh ($0.0642/kWh)
- 2.4% decrease for the next 601-3500 kWh ($0.0765/kWh)
- 2.4% decrease for 3501 kWh and above ($0.1103/kWh)
Residential Demand Charge- Increased
The residential demand charge will increase to $0.56/kW. The Demand Charge is based on the highest demand (kW) measured during the Co-op’s peak hours in each member’s billing cycle. FEC’s peak hours occur Monday through Friday from 7 to 10 a.m. and 5 to 8 p.m. (no weekends or major federal holidays). Demand levels reached outside of peak hours will not contribute to the Demand Charge.
See exactly how this change will impact your bill with our Residential Demand Charge Bill Calculator.
What is electrical demand?
Demand measures the maximum amount of power you require each billing period during Flathead Electric’s peak hours, when our costs are higher. This two minute video will help you understand electrical demand and why a demand charge is a more fair way for our members to pay for the power they use.