Pioneer Electric Board Approves Implementation of Three-Part Rate Restructure

Pioneer Electric Board of Trustees Approves Three-Part Rate

Sept. 23, 2022 – The Pioneer Electric Cooperative, Inc. Board of Trustees voted to approve the proposed Three-Part Rate structure on Friday, Sept. 23, 2022. The approved rate redesign will separate charges associated with members’ kW (kilowatt) demand from their energy (kWh) charge. Costs related to members’ kW demand will be listed under a new bill line item titled “Energy Delivery Charge/Demand Charge.” The approved rate restructure will be implemented on Oct. 1 and reflected on bills beginning in Nov. 2022.

“It’s important to understand that the Three-Part Rate is not a residential rate increase,” said Steve Epperson, CEO of Pioneer Electric. “Demand has always been part of members’ bills. A Three-Part Rate breaks the demand out of the Energy Charge and gives members a more accurate picture of the cost to power their homes.”

Epperson stated that the approved Three-Part Rate design is revenue-neutral and modernizes the previous rate structure.

“Pioneer Electric must have a rate structure that can respond to rapidly changing market conditions and member choices regarding alternative technologies like solar or wind,” said Epperson. “Having the appropriate rate design in place that aligns fixed costs with fixed charges will ensure the equitable allocation of costs to all members and thus avoid cost shifts among members. “

The Energy Delivery Charge/Demand Charge will appear on bills beginning in November and calculated from the highest recorded demand during the billing cycle.

“The new Energy Delivery Charge/Demand Charge gives people the power to take control of their energy use,” said Anita Wendt, Vice President of Energy Services. “Demand will vary for each member. Simple things like spreading out your energy-hungry chores, such as running the dishwasher and washing machine when energy use is low, will make a difference for members who want to maintain a lower demand.”

Additional information regarding the Three-Part Rate and its associated charges can be found here. Members with questions regarding the approved Three-Part Rate structure may contact the cooperative’s headquarters by calling 620-356-1211 during regular business hours (Monday-Friday, 8:00 a.m – 5:00 p.m.)

Pioneer Electric Cooperative, Inc. is dedicated to providing members with safe and reliable electric service. Headquartered in Ulysses, Kansas, Pioneer Electric is a distribution cooperative owned and controlled by its members. Pioneer Electric serves approximately 15,900 retail electric meters across ten counties in southwestern Kansas. The system has more than 117 miles of transmission line, 3,600 miles of distribution line, and 21 substations. All of Pioneer Electric’s electricity is procured by Sunflower Electric Power Corporation, which is owned by Pioneer Electric and five other Kansas electric co-ops. Pioneer Electric is a Touchstone Energy Cooperative.