July 31, 2024 – Southern Pioneer Electric’s proposed Three-Part Rate structure received approval from the Kansas Corporation Commission on July 31, 2024. The approved rate redesign will separate charges associated with consumers’ kW (kilowatt) demand from their energy (kWh) charge. Costs related to customers’ 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 Aug. 1 and reflected on bills beginning in Sept. 2024.
“The redesign will help modernize our rate structure for a rapidly changing energy market,” said Lindsay Campbell, CEO of Southern Pioneer Electric. “Demand has always been accounted for in consumers’ bills; the three-part rate separates demand to its own line item on billings. The changes are to be revenue-neutral for Southern Pioneer and intended to establish a more accurate representation of customers’ individual costs. Having the appropriate rate design that aligns fixed costs with fixed charges will ensure the equitable allocation of costs to all customers and thus avoid cost shifts among various rate classes.“
The Energy Delivery Charge/Demand Charge will appear on bills and be calculated from the highest recorded demand during a consumer’s billing cycle.
“The new Energy Delivery Charge/Demand Charge gives customers more control of how their energy use impacts bills,” said Anita Wendt, Vice President of Energy Services. “Demand will vary for each customer. 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 customers wanting to maintain a lower demand.”
Additional information regarding the implemented changes is available here. Southern Pioneer Electric customers with questions may contact a customer service representative at 800-670-4381 during regular business hours (Monday-Friday, 8:00 a.m. – 5:00 p.m.)