What is load-factor energy pricing?
Instead of applying a single uniform energy rate to all in-season energy sales, the proposed load-factor energy pricing mechanism divides the monthly kilowatt-hour sales into two segments: • First Segment – First 164 kWh per kW of Demand • Second Segment – All Other kWh per kW of Demand For example, if one month a customer has a Billing Demand of 10 kW and energy usage of 4,000 kWh, the usage portion of the bill would include: • 1,640 kWh at First Segment energy rate (164 * 10 kW) • 2,360 kWh at Second Segment energy rate (4,000 kWh total usage – 1640 kWh Segment 1)
