How Rates Are Set
How Rates Are Set
Rates charged to Umatilla Electric's customers are based on a number of factors. Rates per kilowatt-hour of use vary, depending upon the type of account (residential, commercial, industrial or irrigation), usage, season or other factors.
The main factor in setting UEC rates is the price it pays for wholesale power. UEC buys most of its power from the Bonneville Power Administration. Much of BPA power is generated by hydropower, the most inexpensive form of generation.
UEC's four main charges include:
- Monthly Basic Charge, which is a fixed rate to pay for expenses such as meter reading, billing and member services.
- Monthly Availability Charge, which is based on the highest kilowatt demand usage recorded on that account during the previous 18 months. This pays for operations, system maintenance and other associated costs.
- KwH Charge, to cover the costs UEC pays to buy power from wholesale suppliers.
- KW Demand Charge, which is applied to larger accounts when there has been metered usage during the last billing period. This charge collects what UEC pays for kilowatt demand from its wholesale energy suppliers, such as the Bonneville Power Administration.
