Residential Customers
Santee Cooper is considering an 8.7% base rate increase for its residential customer class – along with a new rate structure that gives residential customers the power to dramatically lower their bills by adjusting when they use high-demand appliances.
Santee Cooper is recommending a three-part rate, which includes an on-peak demand charge based on the highest one-hour integrated demand for each customer meter during the on-peak window for the month, for rate classes RG (Residential General Service, covering most residential customers), REV (Residential Electric Vehicle) and EVO (Residential Electric Vehicle Only). Much of the fixed-cost recovery previously included in the energy rate will be recovered in the on-peak demand charge, and so the energy rate will decrease. The recovery of fixed costs through a demand charge allows for a direct alignment between cost-causation and cost-recovery.
The proposed on-peak demand window for RG, REV and EVO is 3 p.m. to 6 p.m. in the summer months and 6 a.m. to 9 a.m. in the winter months. The proposed on-peak energy window for rate class RT is from 3 p.m. to 7 p.m. in the summer months and 5 a.m. to 9 a.m. in the winter months. Summer months are April through October and winter months are November through March.
As a result of adding the new demand charge, Santee Cooper is able to recommend reducing the energy charge by about 40% (based on current summer rates) and eliminating the seasonal differential in the energy charge.
RG Customers
RG Rate Comparison
Currently, a typical residential customer is billed according to the total kilowatt hours (kWh) consumed during each month (the energy charge) and the cost to serve the customer account (the customer charge). The proposed new rate structure would charge a residential customer about 40% less for total energy consumed and add a $10.03-per-kilowatt (kW) demand charge, reflecting fixed system costs, including generating stations. The demand charge is applied to the highest demand recorded by the customer during Santee Cooper system peak hours for each month. By reducing demand during the peak period, a residential customer may use the same amount of energy and receive a lower bill.
How Demand Would Impact Your Bill
*2025 impact assumes implementation of proposed rates on April 1, 2025.
Calculate How the Rate Adjustment Could Impact Your Bill
Residential customers on the RG rate can see how the rate adjustment would affect your bill based on your past energy use and get ideas for how you can reduce your bill by changing when you use the most electricity.
What is a Three-Part Rate Structure?
Santee Cooper is recommending adoption of a three-part electric rate that charges customers for their share of the total electricity Santee Cooper must provide during peak times. It also increases customers’ ability to lower their bills by changing when they use the most electricity each day. While some customers already have a three-part rate structure, this is new for most residential customers.
A three-part rate divides billed amounts between the cost to serve the customer account (customer charge), the total amount of electricity consumed by that customer over a customer’s billing cycle (energy charge), and – new – the most electricity the customer uses at one time during peak hours for their billing cycle (demand charge).
Here's the three-part rate breakdown:
- Customer Charge (flat rate): The customer charge is a fixed charge unrelated to energy usage. It covers ongoing fixed charges, such as billing, accounting, collections and customer service, as well as some fixed installation and upkeep costs for things including meters, wires and transformers.
- Energy Charge (kWh): The energy charge covers the amount of electricity used during a billing period and variable costs of producing electricity, including purchased power and a base amount for fuel. It’s calculated by multiplying the total energy used by the per-kWh charge for the billing cycle. The energy charge will vary if you use more or less electricity.
- Demand Charge (kW): Demand is measured in kilowatts (kW) and represents the maximum amount of energy you used over a single hour during the peak period each billing cycle. The demand charge is determined by multiplying the maximum demand you incurred by the demand rate.
Understanding Demand
The demand charge is assessed based on Santee Cooper’s typical system peak, which is a three-hour window when customers typically require the most electricity to meet their needs. These peaks occur in the late afternoon/early evening on a hot summer day or in the early morning on a cold winter day.
These peaks are periods when people want the most from their heating or cooling systems, depending on the season, and are also the most active in their homes – cooking meals, adjusting thermostats for maximum comfort, doing laundry, and running any number of other electric appliances.
Here is a comparison of the current two-part rate and the recommended three-part rate for a residential customer:
The recommended summer peak window is 3 to 6 p.m. A customer whose maximum demand during the peak is 5 kilowatts will be billed a $50.15 demand charge, or $10.03 per kilowatt. However, if the customer has a 3-kilowatt oven and either uses a slow cooker (.18 kW) or delays cooking each day until after 6 p.m., their on-peak demand drops to 2 kW and the demand charge drops to $20.06.
Tips to Lower Your Demand
You have control over when you use electricity.
- Use timers to remind you of peak times. Being aware of peak times can help you remember to avoid using large amounts of electricity during those times.
- Set your smart thermostat to pre-cool or pre-heat your home prior to peak times.
- Adjust your energy use during peak times to reduce your demand. For example, you can postpone using large energy-use appliances during the peak hours.
- Prepare meals prior to the peak times. Also consider using slow cookers, your grill, and/or your microwave instead of your range or oven.
- Run your dishwasher and clothes washer and dryer outside the peak times. Some of these appliances have timers.
- Program pool pumps to operate outside of peak times.
RT Customers (Time-of-Use Rate)
RT Rate Comparison
Residential customers who do not want to be billed under the RG rate can switch to the residential time-of-use rate, which will be updated to reflect revised daily periods when the energy charge is higher and lower. The on-peak periods for the RT rate will be an hour longer than under the RG rate, running from 5 a.m. to 9 a.m. in the winter months and 3 p.m. to 7 p.m. in the summer months. Additionally, the customer charge will be reduced by $8 per month, and there is no demand charge.
EV Customers
The experimental REV and EVO electric vehicle rates will be made permanent and will include an on-peak demand charge. The Super Off-Peak charging windows will remain 11 p.m. to 5 a.m. on the REV rate and 9 p.m. to 5 a.m. on the EVO rate.
EV Rate Comparison
