New Rate Structure
PrintUnderstanding Your New Rate Structure
Lower Valley Energy’s (LVE) elected Board of Directors has approved updates to both the electric rate structure and electric rates that will take effect with October 2026 bills. The updated rate structure is designed to more closely align bills with how members use the electric system while continuing to support safe, reliable electric service. Overall electric revenues will increase by approximately 6%, although the impact on individual bills will vary depending on each member’s usage and demand.
- See the New Rates
- Check out the Bill Estimation Calculator to compare your current electric bill against the new rate structure.
Why are rates changing?
Lower Valley Energy works hard to keep rates low for members. In fact, we have some of the lowest rates in the nation. However, rising costs from our main power supplier, the Bonneville Power Administration, along with higher costs to maintain and deliver energy, require LVE to keep rates aligned with the true cost of service so we can properly maintain the system and ensure reliability.
Some of these increased cost pressures include:
- Inflation – the costs for materials and labor have increased significantly over the last five years. View Utility Inflation Examples
Rest assured your cooperative continues to use your dollars carefully by finding ways to reduce costs, improve efficiency, and use new technologies whenever possible—without sacrificing service.
As a not-for-profit, member-owned cooperative, every dollar collected from members goes toward purchasing power, operating and maintaining the electric system, and investing in reliability improvements. As poles, substations, and other equipment age, ongoing replacement and upgrades are necessary. Balancing affordable rates with reliable service is always a challenge, but you can be confident your dollars are being used to provide the energy your home or business needs. See where the money goes.
Why is the Rate Structure Changing?
Not every home uses the electric system the same way.
Some members use a small, steady amount of electricity throughout the month, while others need much more electrical capacity for short periods. Lower Valley Energy must build and maintain a system capable of meeting every member’s highest demand whenever it occurs.
Except for large commercial accounts, which have always included a demand charge, the previous rate structure was based mainly on monthly energy use, or kWh. While that measures total consumption, it does not fully show how much of the electric system is needed to serve each member.
The updated structure is intended to better align each member’s bill with the actual cost of providing electric service. It is another step in Lower Valley Energy’s long-term move toward a more member-specific, cost-of-service-based rate structure.
How Rates are Changing
Lower Valley Energy will add a demand charge to all electric rate types, similar to the way large commercial members are billed. This charge helps better align the cost of operating and maintaining the electric system with how each member uses it. Members who create higher demand require more infrastructure and capacity to serve their homes or businesses, and the updated rate structure is designed to reflect those costs more accurately.
Learn More
Lower Valley Energy’s transmission and distribution system costs are driven by the need to satisfy members’ highest demand, even if it only occurs once each month. That’s like building a six-lane highway to accommodate rush hour traffic, but the rest of the day a two-lane highway would suffice.
We have to build and maintain an electric system capable of meeting every member’s highest demand at any point in time. That means grid components—including power plants, transmission lines, and transformers—must be sized to handle the absolute highest peak.
Your electric bill has traditionally reflected how much electricity you used during the month. The new demand charge also reflects the highest amount of electricity your home required at one time during a 15-minute period.
What Is Demand?
Watch the short video below to learn more about electric demand and how it impacts your co-op and your electric bill.
Demand vs. Consumption
A simple way to see the difference between demand and consumption is by considering two examples.
A single 100-watt lightbulb running for 10 hours uses 1 kWh of energy and creates 0.1 kW of demand.
Ten lightbulbs running for 1 hour also use 1 kWh, but they create 1 kW of demand because they are all on at the same time.
Both examples use the same amount of energy, but the second requires more utility infrastructure to meet the higher short-term demand.
Demand charges help the utility account for the second user’s higher impact on the grid.
Residential members already see a monthly base charge and an energy charge on their bills. Going forward they will also see a demand charge.
1. Monthly Base Charge
Lower Valley Energy is adjusting how the monthly base charge is calculated based on usage. With this change many members will see a reduction in their monthly base charge. See New Rates.
2. Energy Charge
This is the charge for consuming energy. The residential rate remains the same at $0.062 per kWh.
3. Demand Charge
The demand charge is based on the highest consecutive 15-minute interval of electricity usage during your month’s billing period. It’s measured in kW and the charge is $1.00 per kW. In the graphic above, the demand charge for the month would be $8.50.
8.50 kW X $1.00 = $8.50
Running major appliances at the same time will cause your demand to increase.
A hot tub, heated driveway, and charging multiple EV’s could add another 20-40 kW of peak demand.
Stacking vs. Staggering
The simplest way for residential members to reduce their peak demand — and resulting demand charge — is to spread out their use of appliances and other power-hungry devices.
In the graphic above the member on the left begins cooking a roast at 5 p.m. At the same time, they start the dishwasher and throw a load of laundry into the dryer. This member is stacking their appliance usage which results in a higher demand charge.
The member on the right spreads their appliance usage throughout the day. Staggering their usage means their demand charge is less than half that of their neighbor. A difference of about $7 per month or $84 per year.
Appliance Demand
To get an idea of how much energy different household appliances use, check out the table the below. Running several large appliances at once drives demand higher.
Estimated Appliance Demand
| Appliance | Estimated Demand | Appliance | Estimated Demand |
|---|---|---|---|
| Electric Furnace | 10.000 kW | Jetted Bathtub | 1.500 kW |
| EV Charger (Level 2) | 9.600 kW | Dishwasher | 1.200 kW |
| Clothes Dryer | 5.600 kW | Chest Freezer | 1.100 kW |
| Electric Water Heater | 4.500 kW | Coffee Maker | 1.025 kW |
| Hot Tub | 4.500 kW | Dehumidifier | 0.785 kW |
| Heat Pump | 3.587 kW | Refrigerator | 0.700 kW |
| Air Conditioner (Central) | 3.500 kW | Block Heater | 0.500 kW |
| Electric Oven | 3.400 kW | Computer (Desktop) | 0.350 kW |
| Electric Range | 1.500 kW | Television | 0.330 kW |
| Welder | 2.300 kW | Vacuum | 0.297 kW |
| Space Heater | 1.500 kW | 3D Printer | 0.250 kW |
| Hair Dryer | 1.500 kW | Washing Machine | 0.210 kW |
| Wall Heater | 1.500 kW | Console Gaming System | 0.200 kW |
| Microwave | 1.500 kW | Computer (Laptop) | 0.100 kW |
| Toaster Oven | 1.500 kW | Cell Phone Charging | 0.010 kW |
Estimated appliance demand values are provided for educational purposes only. Actual demand may vary depending on the manufacturer, model, age, operating conditions, and efficiency of each appliance.
Real World Examples
Watch the short video below to learn how the changes to the Monthly Base Charge and adding a Demand Charge will impact a variety of residential customers.
The video below shows how the changes to the Monthly Base Charge and adding a Demand Charge will impact a variety of Small Commercial members
To see how the new rate structure could impact you, check out our Bill Estimation Calculator to compare your current electric bill against the proposed rate structure.
- When do these rate changes take effect? The updated rate structure and electric rates will be effective with your October 2026 billing statement.
- Why are my rates changing? LVE is adjusting rates to align with the true cost of service, ensuring the cooperative can maintain a safe and reliable electric system. This change is driven by rising costs from LVE’s main power supplier (the Bonneville Power Administration) and increased expenses related to inflation for labor, materials, and infrastructure maintenance.
- Will my bill increase under the new rate structure? Every member’s bill will be different. Overall, Lower Valley Energy’s electric revenues will increase by approximately 6%; however, the impact on your bill will depend on your Monthly Base Charge tier, the amount of electricity you use, and your highest 15-minute demand during the billing period. Some members may see relatively small changes, while others may see larger increases or decreases depending on how they use electricity.
- What is a demand charge and why is it being added? Previously, most residential bills were based primarily on total monthly energy consumption (kWh). The new demand charge is based on your highest consecutive 15-minute interval of electricity usage during a billing period. This charge reflects that LVE must maintain enough infrastructure to meet the peak demand of every member, even if that peak only occurs once a month.
- Is the demand charge a penalty? No. The demand charge is not a “penalty” or a disincentive to using energy. It’s a more accurate measurement to assign each customer their costs for their impact on the system.
- How is the new rate structure calculated? The new structure consists of three parts:
- Monthly Base Charge: A fixed cost applied to every meter to cover equipment, materials, labor, and business overhead. Many members will see a reduction in this base charge.
- Energy Charge (kWh): The charge for the total amount of energy used during the billing period; the residential rate remains unchanged at $0.062 per kWh.
- Demand Charge (kW): The charge for the highest 15-minute interval of power used during the month, set at $1.00 per kW.
- Why is the demand charge only $1.00 per kW? The Board of Directors chose to introduce the new demand charge gradually. Beginning with a lower demand charge allows members time to understand the new rate structure, learn how demand affects their bill, and adjust usage if they choose, while allowing the cooperative to continue moving toward rates that more closely reflect the cost of providing electric service to customers that have different usage levels and usage of the electric system.
- How can I manage my demand charge? The simplest way to reduce your peak demand is to “stagger” your usage of high-power appliances instead of “stacking” them—meaning you should avoid running major, energy-intensive devices simultaneously. For example, staggering the use of your oven, dishwasher, and dryer throughout the day rather than running them all at once can lower your peak demand.
- Where can I see the new rates? The new rates for all member categories can be viewed here. (hyperlink to www.lvenegery.com/my-accpount/rates/new-rates)
- What tools are available to help me understand how this impacts my bill? LVE provides an online Bill Estimation Calculator that allows you to compare your current bill against the new rate structure.
- Where can I view my demand usage? You can view your demand information directly on your bill or by logging into your account via SmartHub.
Still have questions? We’re here to help. Contact Lower Valley Energy’s Member Services team at (307) 885-3175 or visit www.lvenergy.com for additional resources, calculators, videos, and educational materials.
You can see your demand on your bill or within SmartHub. You may also contact our office at (307) 885-3175 and our member service representatives will be happy to assist you.
Monitor and view demand in SmartHub
The video below shows how to view usage and demand by logging into your Lower Valley Energy account online.
This video shows how to view usage and demand in the SmartHub app.
You can also open PDF versions of the tutorials
Helpful Tools:
- Bill Estimation Calculator – compare your current electric bill against the new rate structure.
- How to Read Your Bill
- View My Energy Usage
Our goal is to help every member understand these changes before they appear on their bill. If you have questions, Lower Valley Energy is here to help through online resources, open houses, and our Member Services team. We are committed to making this transition clear and straightforward.
