One of the things I enjoy most about serving our members is hearing your questions. Recently, a member asked something I suspect many others may be wondering:
“If air conditioning drives the highest demand for electricity during the summer, why does Kankakee Valley REMC use time-of-use (TOU) pricing all year long?”
It’s a great question.
While summer air conditioning is one of the largest contributors to peak electrical demand, it’s not the only time our electric system experiences high use. During the winter months, demand can also rise significantly as homes and businesses rely on electric heating systems, heat pumps, water heaters, and additional lighting during shorter days.
In fact, this past winter, the Midcontinent Independent System Operator (MISO), our regional transmission operator, issued a grid emergency due to extremely cold temperatures across parts of the Midwest. As heating demand surged, the regional electric grid experienced significant strain — demonstrating that peak demand isn’t limited to summer.
Kankakee Valley REMC has offered time-of-use rates for many years. When we transitioned all members to this rate structure, our goal was to encourage electrical use during periods of lower overall demand. By maintaining a consistent peak period of 4 to 7 p.m. year-round, we created a system that is simple to understand while helping reduce stress on the electric grid.
As a member-owned cooperative, we are always looking for ways to keep costs as low as possible. When members shift some energy use outside peak hours, it helps reduce the amount we pay for wholesale power from Wabash Valley Power Alliance.
The results have been meaningful. Last year, lower power costs allowed us to provide a bill credit to all members. Then, beginning in January, we reduced the cost of electricity that we charge you by nearly 6%. These savings were made possible in part because many members made a conscious effort to move energy use to off-peak hours.
Thank you to the member who submitted this question. We appreciate your feedback and will continue sharing information that explains how your cooperative operates and how, together, we can keep electricity reliable and affordable for all.
Scott Sears is CEO of Kankakee Valley REMC.
