'Time of use' rates could mean higher electricity bills for millions in Missouri

Jun 28, 2023

by: Emily Manley

Posted: Aug 11, 2023 / 06:22 PM CDT

Updated: Aug 11, 2023 / 09:55 PM CDT

JEFFERSON CITY, Mo. – Within the next few months, millions of Missourians could be paying more for electricity.

The Missouri Public Service Commission has moved forward with a new mandate on electric companies, which will lead to rising bills for customers.

Think of supply and demand. The more demand there is, the higher the cost. Because of that price determination, Ameren Missouri and Evergy are now required to use “time of use” rates, an adjustment to the price you pay for electricity based on the time of day it’s used.

“It allows them to control their energy dollars, save money and really have more control over how much they have to pay for energy,” said Scott Rupp, chairman of the Missouri Public Service Commission.

Starting in October, Evergy customers on the western side of the state will need to enroll in one of four state plans. If you don’t select from one of those four plans, you will automatically be enrolled in the standard peak saver rate. In this case, the price of electricity will spike from nine cents to 38 cents per kilowatt-hour between the hours of 4-8 p.m. in the summer months.

“We’re going to give you a discount on how much your energy is on all the other times of the day, but during these times when it’s more expensive, we’re going to flow the cost through so you have understanding of what it actually costs you to use your energy,” said Rupp.

“In Evergy, the most aggressive plan, the cost does go up quite a bit during the four-hour period of the peak time, but you’re also getting almost a 50 percent discount on the times when it’s not as expensive,” he added.

Thanks for signing up!

Watch for us in your inbox.

Subscribe Now

On Thursday, representatives from Evergy told the Public Service Commission roughly 90 percent of customers will see little change or possibly save annually.

Some Missouri lawmakers are not pleased by this concept.

“So I’m going to work all day, come home, wait until midnight to turn the air conditioner down, so it will be cool enough for me to sleep,” said Missouri State Sen. Cindy O’Laughlin (R-Shelbina). Yet I won’t be sleeping because I’ll have to be up doing my laundry and my household things when I can afford the power. What kind of a system is that?”

O’Laughlin, also the Senate Majority Floor Leader, isn’t an Evergy customer. But she says the Public Service Commission is abusing their power by mandating time of use rates.

“The PSC is really in effect to make sure that Missourians have affordable, reliable power and in my opinion. This steps outside of that,” said O’Laughlin.

“This is the first time we’ve actually given customers choice, where you actually have multiple rates to pick from and stuff. So this is what we were designed to do,” said Rupp.

O’Laughlin and Senate Minority Leader John Rizzo (D-Kansas City) sent a letter to the commission this week asking them to repeal “time of use” rates. They expect the topic to be top of priority this upcoming session.

“It’s not acceptable to me and I don’t think it’s going to be acceptable to most of the people in the legislature,” said O’Laughlin.

Evergy is offering the four following time-based rate plans:

Under this standard plan, customers will be charged a higher per-kilowatt hour rate from 4-8 p.m. on weekdays from June until September.

According to Evergy’s website, during the summer months from 4-8 p.m. the price of electricity will spike from $0.09 to $0.38 per kilowatt hour (kWh).

Under this plan, the price you pay will change based on the amount of energy used and the season.

The plan establishes pricing tiers based on the time of the year, with rates increasing in the summer months and decreasing in the winter months.

The three-tier pricing plan is based on usage ranging from 600 kWh to more than 1,000 kWh used each month. Once a customer has completely used the energy allotment in one tier, the price changes to the next tier rate.

Under this plan, electricity prices will vary based on time of the day, day of the week and by season. Evergy will charge a higher per-kilowatt rate during peak energy usage times on weekdays between 4-8 p.m. and a lower rate during “Saver” and “Super Saver” time slots.

During peak energy usage times, Evergy customers will be charged $0.33 per kWh in the summer months and $0.27 per kWh in the winter months.

Evergy has established “Saver” times as 6 a.m. to 4 p.m. and 8 p.m. to 12 a.m. Monday-Friday and 12 a.m. to 6 a.m. on the weekends. According to Evergy’s website, “Super Saver” times are daily between midnight and 6 a.m.

During the summer prices drop to $0.11 per kWh during “Saver” times and $0.05 per kWh during “Super Saver” times. In the winter months, customers will be charged $0.10 per kWh during “Saver” times and $0.04 per kWh during “Super Saver” times.

Under the Nights and Weekends Max Saver plan, customers will see higher energy prices between 4-8 p.m. with a $0.35 per kWh charge during the summer months and a $0.27 per kWh charge in the winter.

In the summer months, prices decrease to $0.11 per kWh during “Saver” times and $0.02 per kWh during “Super Saver” times. During the winter months, customers will pay $0.09 per kWh during “Saver” times and $0.02 per kWh during “Super Saver” times.

If you are unsure which plan will be the best fit for you, you can use Evergy’s Rate Comparison Tool to calculate potential charges based on your past energy usage. According to Evergy’s website, the change is expected to go into effect on Oct. 1.

Submit

Δ

Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.