‘It’s unfair’: Ozark Electric customers concerned by new demand charge

CHRISTIAN COUNTY, Mo. – Customers with Ozark Electric Cooperative are starting to see a new addition to their bill called a “demand charge.”

This is an additional fee that takes whatever your highest usage is for a 15-minute period and then charges you that rate for the entire month.

With this change, Ozark Electric says some people could end up paying less but understands why others are upset.

One of the biggest issues customers have is they can use very little electricity for most of the month, but as soon as they hit a peak they will be charged that peak “demand” rate for the entire month despite trying to use less energy.

“This is sort of like an additional fee that unfortunately you’re blind to,” said Evan Fusco. “You don’t know how high it’s getting or when you’re doing that.”

Fusco has been an Ozark Electric customer for decades. He says despite using a third-less energy after the demand fee was implemented, his bill was still $23 higher.

“The only way you know that you’ve exceeded a certain amount is when you get your bill the next month,” Fusco said. “In my case, I’ve already hit a very high peak for my April to May billing period and there’s not anything I can do about it now.”

Ozark Electric says this new billing structure is more accurate to each member’s usage.

“This approach allows for freedom to the member so that the person that has the smaller home or is taking care of things or does not have large motors or electric furnaces everywhere to be able to pay their fair share of their KW demand,” said General Manager and CEO of Ozark Electric Patrick Oehlschlager.

Last fall, Ozark Electric’s power supplier raised their energy rates, which is part of the reason for the new charge.

“My problem with that is we have to pay that demand fee all the time, whether they’re paying a demand fee or not,” Fusco said. “That’s where I feel like it’s unfair.”

Ozark Electric says weather is a big reason why people may see less usage on their bill but have to pay a higher price.

“We’re hoping to be less tied to the volatility of weather and use the KW component to help levels so that in the long run we can help stabilize the volatility of rates for our members,” Oehlschlager said.

“There should be some ways for us to live within that and still kind of accommodate and help contribute to reducing that demand pricing,” Fusco said. “And again, I’m not opposed to paying what we need to pay to continue to get the service that we need. I just think there’s a better way to execute it.”

Fusco says he wants Ozark Electric to provide a way for customers to know when their demand usage is getting higher than normal so members can cut back on energy if needed.

“The fallacy that somebody is only going to have a one time, 15-minute here at 16 KW and then the rest of the month they never get above eight would be very rare,” Oehlschlager said.

To help lessen his demand, Fusco bought a $300 smart thermostat and switched to LED light bulbs.

“We’ve done all these things and to try to be better utilizers of that and it really kind of feels wrong that the goalposts have been moved on us now,” Fusco said.

Ozark Electric says the best way to lower your bill would be to stagger your electric usage, like not running two appliances at once or waiting until the A.C. is off to turn on your oven.

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