Why did the PUD decide to add a new Demand charge?
The Demand charge is not a new charge. It has always been embedded in the energy rates. The PUD is separating out the Demand charge from the Energy charge. This will allow the PUD to assign costs that are directly related to demand, and not based on total energy consumption. These are the costs related to maintaining the distribution system.
The customer will still see an Energy charge that is based on the total amount of energy they consume during a billing period. However, the Energy charge will be reduced once the Demand charge is separated out.
The new unbundled rate structure with separate Demand and Energy charges will allow customers to see exactly how much they pay for the energy they actually use (the energy costs from BPA, our power provider), and how much they pay toward the costs that the PUD incurs to deliver and distribute that energy to them.