The Crested Butte News Serving the Gunnison Valley since 1999
Three months for folks to view their peak usage before charges begin
By Katherine Nettles
Gunnison County Electric Association (GCEA) is preparing to restructure its billing next year to identify individual energy usage, reflect electricity use during peak demand hours and possibly to increase rates as well. The first batch of changes will roll out next month, but bills will not change until the new year so that users have time to adjust to what is coming and perhaps even adjust their habits in advance of the charges. The GCEA board of directors will meet in late October to consider a rate increase for its 11,500 members.
GCEA has stated on its website and in a press release earlier this year that technology improvements are leading the energy cooperative to introduce a three-part rate structure to improve rate equity among members and break up current energy charges into energy (kWh) and peak demand (kW) charges.
GCEA member relations supervisor Alliy Sahagun gave the Crested Butte News an overview of the changes GCEA has already approved, and what may be decided later this fall.
Starting next month, residential and small commercial accounts will see a new monthly peak demand reading on their bill, which reflects peak demand times of 5 to 9 p.m., Monday through Saturday. These peak times are when electricity usage is highest and therefore puts stress on the grid. Those times require more electricity generation, transmission and distribution infrastructure—hence GCEA’s conclusion that it is time to start charging members for it when they use it.
Bills will include the exact time energy was consumed during the peak window, and a new line item for the peak demand charge will also appear but will be billed at $0.00 for now, so members can get used to seeing it. Beginning January 1, the charge will be calculated by multiplying their peak demand reading (in kW) by $1.
The GCEA board will also consider a rate hike at their next meeting on October 23.
“Once the 2026 rate adjustment has been approved, we will publish a rate calculator on our website to provide members a comparison between the current rate and the 2026 rate, including the peak demand charge.”
“Members will enter their typical energy usage (measured in kilowatt hours or kWh) and the rate calculator will estimate their future bill,” said Sahagun.
“The peak demand component of the bill will provide members another way to potentially lower their bill. Currently, to lower their bill a member would simply need to use less energy. Now, they can choose to shift their usage to a different time of day to lower their peak demand charge. And, if a member utilizes GCEA’s time of use (TOU) rate, off peak energy consumption is billed at a lower energy rate.”
Sahagun said the goal of the rate design change is to help GCEA re-align cost recovery and to improve equity within each rate class. “It is not to create additional revenue for the co-op. GCEA pays Tri-State Generation & Transmission Association for wholesale power, and a primary driver of that bill is the demand charge. With GCEA’s new rate design, those who contribute towards peak demand will pay their fair share. Cost causers will be cost payers.”
This is expected to be a five-year transition, and during year one Sahagun says members will probably not see much of a change in their GCEA bill. “As the years progress, the peak demand charge will ramp up,” said Sahagun. “The energy charge is forecasted to adjust down accordingly. Inflation and other cost drivers will impact future rate adjustments.”
More information can be found at www.gcea.coop/gceas-rate-structure-change/
