To the editor:

AARP Kansas strongly opposes a proposal by Midwest Energy to add a new demand charge to residential customer bills. The company, a customer-owned electric and natural gas cooperative that serves 93,000 customers in 40 counties in central and western Kansas, is considering a three-part rate structure featuring a customer charge, energy charge and a demand charge, beginning Jan. 1, 2023. AARP urges the Midwest Energy Board to soundly reject the proposal at its meeting on Nov. 17, 2022.

Demand rates would add a monthly charge for the customer’s highest peak demand use. Midwest Energy would base the charge in the summer on peak demand time from 3 to 7 p.m. and the maximum monthly kilowatt peak used in a 15-minute interval in all other months. 

Such a charge is confusing and hard for customers to respond to. Customers would not know when they incurred such a charge absent using the utility’s Customer Connect portal to track down the information. Such a difficult new charge to anticipate and track down should not be added to the bill.

Even though the overall change may be revenue neutral, customers who do not pay attention to their energy use could face dramatically higher energy bills. Such surprise charges are unfair to customers, do little to change energy consumption and are unreasonable in these inflationary times.”

AARP Kansas is urging Midwest Energy to withdraw the proposal and stick with volumetric rates, including a monthly customer charge. A voluntary time of use rate may be another option. 

In this time of rising energy costs, now is not the time to impose a confusing and unnecessary residential rate design change. If one must be implemented, AARP suggests that Midwest Energy make it a rate option or pilot tested.

Glenda DuBoise

AARP Kansas State Director