Platte-Clay Electric General Manager Dave Deihl wrote about the time-based electric rate changes that are going into effect in Missouri this fall. Deihl wanted to set the record straight with an article in Platte-Clay’s Northland Connection this month.

*We talk a lot about how electric cooperatives are different from investor-owned utilities, and this is another great example - Platte-Clay Electric General Manager Dave DeihL*

Evergy announced its move to time-based energy rates following the Missouri Public Service Commission’s new mandate on electric companies, which will lead to rising bills for customers. The Missouri Public Service Commission put this mandate on electric companies like Evergy and Ameren Missouri, which will lead to rising bills for customers.

Evergy and Ameren customers will need to enroll in one of four rate plans in October. If they don’t choose a plan, their energy company will automatically choose the standard peak saver rate for them. At this level, the price of electricity will spike from nine cents to 38 cents per kilowatt-hour between the hours of 4-8 pm in the summer months.

Deihl says that Platte-Clay Electric will not be moving to these time-based rates.

“We talk a lot about how electric cooperatives are different from investor-owned utilities, and this is another great example”, wrote Deihl in the newsletter. “Investor-owned utilities in Missouri, like Evergy and Ameren, are regulated by the Missouri Public Service Commission (PSC), which was established in 1913. Thankfully, the state’s rural electric cooperatives have a different relationship with this commission. The PSC only regulates the operational safety of the state’s electric co-ops.”

Because of this, Deihl says Platte-Clay Electric’s rate philosophy is not determined by the Missouri commission. Rather PCEC’s rates are determined by the Board of Directors.

“Let me be clear, though, there is no right or wrong rate design. Electricity does cost more at certain times when system demand is high,” wrote Deihl. “Whether utilities price electricity higher at certain times of day, or offset fixed generation demand charges, both concepts are ultimately intended to help balance the stress on the power grid and the price of electricity production.”

Read Dave Deihl’s full article HERE.

KPGZ News - Brian Watts contributed to this story