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Santee Cooper’s proposed residential demand charge: how it would work and why it matters

Department of Consumer Affairs · September 11, 2024

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Summary

DCA presenters broke down Santee Cooper’s proposed demand-charge design, explained peak windows and a one-hour peak interval, and used a hypothetical customer to show how a demand charge can add tens of dollars to a monthly bill.

The Department of Consumer Affairs detailed how a proposed residential demand charge from Santee Cooper would change monthly bills, explaining the policy, how demand is measured, and what customers can do to avoid higher charges.

Assistant Consumer Advocate Jake Edwards said Santee Cooper's proposal defines summer peaks from April to October (3–6 p.m.) and winter peaks from November to March (6–9 a.m.) and calculates a customer's demand as the single highest one-hour interval during those windows. "It's generally going to be the peak over 1 hour, and that's just going to be referred to as your peak interval reading," Edwards said.

Using the Santee Cooper proposal numbers in a hypothetical, Edwards ran a calculation for a fictional customer named "Beamer." In the example, Beamer's one-hour peak was 8.3 kilowatts; Edwards multiplied that peak by the proposed demand charge ($10.03) to calculate an $83.25 monthly demand charge. Added to a $20 basic facilities charge and a $68.40 energy charge (simplified assumptions), the example yielded a rough monthly bill of about $171.65. "So there are ways you can kinda use this. And if you use it carefully and use it well, you actually do have potential for savings," Edwards said, while warning that without care customers could pay more.

Edwards and Deputy Consumer Advocate Roger Hall urged customers to review the important dates in Santee Cooper’s rate process (details on the slide) and to participate in the proceeding. DCA advised homeowners to look for ways to shift high-usage activities outside peak windows, consider available demand-side management programs, and check whether their meter or tariff offers alternatives. For unresolved billing problems, customers should contact their utility, then ORS consumer services, then file a PSC complaint if necessary.

The presenters emphasized the example was simplified and omitted riders and EDIT returns; the precise bill impact for any household will depend on actual usage patterns, step rates, riders, and true-ups.