Our Rate Structure

Broad River Electric’s new rate structure gives members more control over their electricity bills and an easier way to save money. The structure consists of three parts: a grid access fee, an energy charge and a peak demand charge.

Grid Access Fee (previously known as the facility charge) - This is a fixed, monthly charge per billing cycle to cover the operating costs associated with providing electricity to your home, such as maintaining power lines, equipment and labor.

Energy Charge (kWh) - This is the fee for the amount of energy used to power your home or business, measured in kilowatt-hours (kWh) by your meter.

• Kilowatt hours (kWh): One kilowatt is equal to 1,000 watts, and a kilowatt-hour (kWh) of energy is equal to 1,000 watts used per hour. So, one 10-watt LED bulb lit for 100 hours = 1,000 watt-hours = 1 kWh
• Here’s a quick guide to what 1 kWh or 8.274 cents of electricity is capable of:
  • 4 hours of a 250-watt refrigerator
  • 3 loads of laundry in the washer
  • 276 charges for your cell phone
  • 13 hours of fan use
• The average Broad River Electric member consumes about 1,279 kWh of electricity in one billing cycle.

Peak Demand Charge - A fee per kilowatt (kW) on your highest ONE hour of electricity use in the billing cycle during the peak hours.

Peak hours are determined by the times when electricity demand is the highest across the entire electric grid. This typically coincides with the seasons, i.e. cold winter mornings and hot summer afternoons, because that is when HVAC units are working the hardest.

Energy usage varies from season to season and usually depends on the time of day when your HVAC system is working the hardest. When it is cold outside, we need more power in the morning to keep homes warm. When it is warm outside, the demand shifts to the afternoon because that’s when the air conditioning is working hardest to keep your home cool.

This fixed, monthly charge covers the cost of providing electricity to your home. This includes power lines, equipment, labor, substations, and other operating costs necessary to serve each meter in our service territory.

The grid access fee is not a new charge. We have always built in a fixed fee in your monthly bill to cover our operating costs. Now, we will be clearly showing how it factors into your total.

The Margin Adjustment Factor (MAF) increases or decreases by fractions of a cent because of fluctuations in the prices we pay to our wholesale power provider and other suppliers. The MAF helps cover those fuel and other cost fluctuations without having to continually adjust our electricity rates. This number is multiplied by your energy usage and added to, or subtracted from, the total charge. Sometimes it increases the total of your bill; sometimes it lowers it.

This new structure gives members a new, simple way to control their energy costs and lower their electricity bills at a time when power costs are escalating. In the past, members who wanted to save money on their electricity bills could use less energy or invest in home upgrades to improve their home’s energy efficiency. Now, members will have a simpler way to access savings without reducing their overall energy usage or making any major purchases.

Remember, Broad River Electric receives a monthly power bill just like you for the energy we supply to our members. One of the drivers of our costs is the amount of energy we use when the overall electricity demand in South Carolina is at its peak.

By sharing with our members when that peak hour is likely to occur, and rewarding them with cheaper rates to use energy outside that peak period, we can reduce our share of the peak demand while individual members save money.

By shifting electricity demand, it keeps power costs low and stable for everyone.

The key is to focus on WHEN you use most of your electricity at home. Members can save the most money on the new rate structure by reducing the amount of energy used during peak hours, and shifting those tasks to off-peak hours when the rate is lowest. Here are some examples:

Limit the use of major power-consuming equipment like dishwashers, clothes washers, and dryers during peak hours.

• For example, wait until after 6:00 p.m. in the summer to run your dishwasher or dry a load of laundry.

Install a programmable thermostat to help save on your heating and cooling costs. Program the thermostat to automatically adjust during peak hours to reduce the system’s energy usage.

• Lowering the set temperature a few degrees in the winter peak hours and raising the set temperature a few degrees in the summer peak hours will maximize your savings.

Install timers on irrigation or pool pumps and program these timers to turn off during peak hours to maximize your savings.

Schedule an annual heating system check-up in early winter to ensure that your system is working properly.

Install a timer on electric water heaters that turns it off during peak hours. Electric water heaters use significant amounts of power, and updating water heaters to energy-efficient ones can help reduce the electric bill.

The new rate structure gives you significantly more control over your electricity bill.

Rather than accounting for our demand costs at a standardized rate, we are moving to a structure that allows you to control your own energy usage during the peak period.

So, if you keep in mind the season’s peak hours and can shift how much energy you use to other times of day, you can save money.

Rate Example*:

• Let’s say you use 1,279 kWh of electricity in one billing cycle and set a Peak Demand Charge of 5 kW. Below is how the math works out for the existing rate structure and the new rate structure:
  • Old Rate: $24.50 (Grid Access Fee) + $159.04 (Energy Charge) = $183.54
  • New Rate: $30.00 (Grid Access Fee) + $88.12 (Energy Charge) + $60.00 (Peak Demand Charge) = $178.12

*Calculations may vary based on wholesale power and operating expenses (Margin Adjustment Factor). MAF of -$0.01384 per kWh used in this example.

If you’re interested in saving money on your bill when this new rate structure goes into effect, we encourage you to begin familiarizing yourself with your daily energy usage. You can do that on the SmartHub app in a few simple steps.

• Find your daily usage by selecting the “Usage” tab at the bottom of the home page when you open the app.
• If you click on one of the days shown at the top of the Usage page, it will show you the hourly breakdown of your power usage that day.

By viewing the hourly breakdown on a regular basis, you can determine when you tend to use the most power, and when you have the most opportunity to save.

The new rate structure takes effect starting in your June billing cycle, and will be reflected on your first July bill.

Our member services team is always here to help and is prepared to support our members through this transition to a new rate structure. Call (866) 687-2667 to learn more.

You can also follow us on social media for monthly cost-saving tips, reminders about peak hours, and new ways to save!