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: a fixed charge that recovers the non-energy costs of providing service, such as meter reading, billing and member services.
- Kilowatt-hour (kWh) Charge: recovers UEC costs to buy power from wholesale suppliers.
- Demand Charge: a charge for the maximum electric load recorded over a 30-minute period. Demand is measured in kilowatts (kW). This charge recovers UEC costs for kW demand from its wholesale energy suppliers, such as the Bonneville Power Administration.
- Power Factor Charge: a charge for the system power factor correction.