By Chris Luth, Guest Writer
 

Change can be daunting, especially when it concerns something as essential as your electricity bill. As of October 1, Evergy is ushering in a substantial change in its billing system, transitioning customers to a new Time-Of-Use (TOU) rate plan. For most in the Kansas City area, this means that during summer months, electricity will come at a premium between 4 pm to 8 pm. The introduction of TOU rates may initially sound alarming, but when we dig deeper, there's potential for genuine savings and, more importantly, contribute positively to a greener planet. Let's break it down.

So, What's This All About?

Evergy is not unique in adopting TOU rates. Many utility companies have been moving in this direction, reflecting the real costs of electricity production. Essentially, TOU rates are designed to match electricity prices with the actual costs of producing it at different times of the day. The goal? Encourage us to use electricity when it's abundant and cheaper and conserve when it's in high demand and more expensive.

The Power Grid: A Peek Behind the Curtain

Electricity doesn’t come with a flat rate. Just like peak traffic hours can cause delays on a highway, peak electricity demand can strain the grid and raise costs. Here's why:

1. Peak Demand: Most of our electricity is produced by baseload power plants, which operate continuously at low costs. During high-demand periods, such as hot summer afternoons, our collective urge to blast air conditioners forces utilities to activate “peaker” plants. These plants, often powered by more expensive and less environmentally-friendly sources, are costlier to run.

2. Transmission Struggles: The grid also grapples with transporting electricity. At off-peak times, there's abundant capacity. But during peak demand, there’s congestion. Much like an overloaded extension cord can get dangerously warm, overloaded transmission lines can lead to disruptions.

Grid operators continuously adjust real-time rates across the region, using price signals to balance the supply and avoid overloading long-distance transmission lines. They'll raise the rate in areas with high demand, incentivizing local power plants to produce more and distant plants to reduce output, but that means local utilities like Evergy have to pay more for that electricity. It's a fascinatingly dynamic system – and you can even track it in real-time on our regional transmission operator SPP’s Price Contour Map.

The Renewable Revolution and TOU Rates

As renewables like wind and solar become more prevalent, managing the grid has evolved. In the Midwest, we're harnessing wind power, which is efficient and cheap. But these wind farms are often remote, adding strain to our transmission systems and raising costs to deliver that power. Plus, wind power usually peaks at night, leading to fluctuating wholesale rates. Hence, the push for TOU rates – nudging us to be mindful of when we use electricity.

Benefits of TOU: It's Not Just About Costs

Shifting your heavy electricity usage outside of peak hours isn’t just about cost savings; it's about infrastructure too. By reducing peak demand, we decrease the need for new infrastructure, saving everyone money in the long run. As a bonus, many off-peak periods coincide with renewable energy generation, so you're reducing your carbon footprint too.

But How Does This Affect Me?

Imagine cutting your electricity bill by up to 30%! By making small changes, like delaying your dishwasher or laundry to off-peak hours and cutting back on afternoon air conditioning, you can benefit significantly.

Tips for Maximizing Your TOU Savings:

• Big Energy Consumers: Watch out for appliances that produce or remove a lot of heat. This includes water heaters, clothes dryers, and A/C units.

• Smaller Loads: Modern TVs, LED bulbs, and computers aren't significant energy users. So, you don't have to tiptoe around them.

• Cooking: If you have an electric stove, using it doesn't drain as much power as you might think. But consider using the oven sparingly during peak hours, as it consumes more energy and heats up your home.

Air conditioning is often the biggest energy consumer in our homes, but with a touch of strategy, you can optimize its use. Believe it or not, it can be both cheaper and more efficient to raise your thermostat and allow your home to warm a bit during peak times and then cool it down afterward. While your house’s temperature will rise a bit, your A/C won’t have to run as long against the heat, meaning it draws less power during the priciest times. And with modern insulation, homes hold onto cool temperatures longer than you might think. As outdoor temperatures—and electric rates—drop in the evening, your air conditioner’s efficiency increases, and it’s usually reasonably quick to cool your home back down. As a bonus, in the evening, wind turbines often increase production, so the carbon footprint of your air conditioner drops.

If you're concerned about returning from work to a house that's too warm and expensive to cool, consider using a programmable thermostat. Set it to maintain a cooler temperature using off-peak rates, allowing your home to warm gradually when rates spike at 4 pm. By the time you arrive home a couple of hours later, you'll find it still comfortable. It then becomes a breeze to wait a few more hours until rates drop at 8 pm.

Understanding the Big Picture with TOU Rates

TOU rates represent a broader shift in how we view electricity consumption in an age of increasing renewable energy sources. In places like the Midwest, the growth of wind power means the grid's management has become more about balancing supply and demand. While the "Standard Peak Saver" plan will be the default for Evergy customers later this year, it's worth noting that you have the power of choice. You can opt for other rate plans better tailored to your usage habits, but all will have a TOU component.

Evergy’s shift towards TOU rates isn't just about changing billing. It's an invitation to become a more conscious consumer. By understanding and adapting to these rates, we can save money, reduce strain on our infrastructure, and support a more sustainable future.

Chris Luth is a freelance writer and tech enthusiast based in Ozark, MO, working primarily in the travel/tourism industry. With a background in journalism, Chris is keen on exploring sustainable energy solutions, particularly the decarbonization of the power grid and the adoption of electric vehicles.