Residential Customers
Santee Cooper is considering a base rate increase for its residential customer class – along with a new three-part rate structure that gives residential customers the power to dramatically lower their bills by adjusting when they use high-demand appliances.
These recommendations include:
- Reducing the energy charge by approximately 40%.
- Including a new, on-peak demand charge.
- Giving customers the power to lower their bills if they choose to shift the use of high-electricity-demand appliances to the 21 hours of the day outside of the daily peak hours. Examples of high-demand appliances include clothes dryers and water heaters. (More examples are below.)
Peak hours are:
- 3-6 p.m. in summer months (April-October).
- 6-9 a.m. in winter months (November-March).
*This new rate structure affects residential customers on the following rates: RG (Residential General Service, covering most residential customers), REV (Residential Electric Vehicle) and EVO (Residential Electric Vehicle Only). The proposed on-peak energy window for rate class RT is from 3 p.m. to 7 p.m. in the summer months and 5 a.m. to 9 a.m. in the winter months.
RG Customers
Overall, the typical residential customer would see an average $10.29 monthly bill increase. However, by shifting the use of appliances that require a lot of electricity away from peak hours, a residential customer could use the same amount of energy and receive a lower bill.
An overview of the rate proposal is available here.
RG Rate Comparison
Currently, a typical residential customer is billed according to how much electricity in kilowatt hours (kWh) they use each month (energy charge) and the cost to serve the customer account (customer charge).
The proposed new rate structure would:
- Reduce the energy charge by approximately 40%.
- Slightly increase the customer charge from $19.50 to $20 per month
- Add a $10.03-per-kilowatt (kW) demand charge. This charge covers fixed system costs, including generating stations.
The demand charge is applied to the highest demand recorded by the customer during Santee Cooper system peak hours for each month. By shifting high-use appliances to the 21 hours a day that are not peak hours, a residential customer could use the same amount of energy and receive a lower bill.
How Demand Would Impact Your Bill
*2025 impact assumes implementation of proposed rates on April 1, 2025.
Video: Learn More About DemandCalculate How the Rate Adjustment Could Impact Your Bill
Residential customers on the RG rate can see how the rate adjustment would affect your bill based on your past energy use and get ideas for how you can reduce your bill by changing when you use the most electricity.
Understanding Demand
The demand charge is assessed based on Santee Cooper’s typical system peak, which is a defined three-hour window when customers typically require the most electricity to meet their needs. These peaks occur in the late afternoon/early evening on a hot summer day or in the early morning on a cold winter day.
These peaks happen when people want the most from their heating or cooling systems and are the most active in their homes – adjusting thermostats for maximum comfort, doing laundry, and running any number of other electric appliances.
Here is a comparison of the current two-part rate and the recommended three-part rate for a residential customer:
The recommended summer peak hours are 3-6 p.m. A customer whose maximum demand during the peak is 5 kilowatts will be billed a $50.15 demand charge, or $10.03 per kilowatt. However, if the customer shifts their use of appliances - like their water heater (3 kW) - to non-peak hours, they could lower their demand to 2 kW and the demand charge drops to $20.06.
How You Can Save Money
You have control over when you use electricity.
- When you use appliances that require a lot of electricity, your demand increases, which increases your bill if you use them during peak hours.
- Use these appliances during the 21 hours of the day that aren't during the peak period.
- High-demand appliances include your clothes dryer, water heater, heat pump, dishwasher and oven.
- Use these appliances outside the peak hours.
- If needed, use only one or two of these appliances at the same time during peak hours.
- Some of these appliances have timers you could add to them.
- Set your smart thermostat to pre-cool or pre-heat your home prior to peak times.
- Use timers to remind you of peak times. Being aware of peak times can help you remember to avoid using large amounts of electricity during those times.
- Program pool pumps to operate outside of peak times.
RT Customers (Time-of-Use Rate)
RT Rate Comparison
Residential customers who do not want to be billed under the RG rate can switch to the residential time-of-use rate, which will be updated to reflect revised daily periods when the energy charge is higher and lower. The on-peak periods for the RT rate will be an hour longer than under the RG rate, running from 5 a.m. to 9 a.m. in the winter months and 3 p.m. to 7 p.m. in the summer months. Additionally, the customer charge will be reduced by $8 per month, and there is no demand charge.
EV Customers
The experimental REV and EVO electric vehicle rates will be made permanent and will include an on-peak demand charge. The Super Off-Peak charging windows will remain 11 p.m. to 5 a.m. on the REV rate and 9 p.m. to 5 a.m. on the EVO rate.
EV Rate Comparison
What is a Three-Part Rate Structure?
A three-part rate is new for most residential customers. This rate structure divides billed amounts between the customer charge, the energy charge, and – new – a demand charge.
Here's the three-part rate breakdown:
- Customer Charge (flat rate): The customer charge is a fixed charge unrelated to energy usage. It covers ongoing fixed charges, such as billing, accounting, collections and customer service, as well as some fixed installation and upkeep costs for things including meters, wires and transformers.
- Energy Charge (kWh): The energy charge covers the amount of electricity used during a billing period and variable costs of producing electricity, including purchased power and a base amount for fuel. It’s calculated by multiplying the total energy used by the per-kWh charge for the billing cycle. The energy charge will vary if you use more or less electricity.
- Demand Charge (kW): Demand is measured in kilowatts (kW) and represents the maximum amount of electricity you used over a single hour during the peak hours each billing cycle. The demand charge is determined by multiplying the maximum demand you incurred by the demand rate.