Dual Flex Pricing for Pilot Participants

 
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JEA is exploring new ways customers can take control of their energy use. More and more electric utilities around the country are offering flexible pricing programs to plan for the future and to help keep utility costs affordable. JEA's Dual Flex Pricing Pilot is based on when and how you use energy, and how that in turn affects the demand the community as a whole places on the overall electric system.

The concept of demand (kW) refers to the rate at which electricity is consumed. In other words, it’s the amount of power needed to run all appliances you are using at any one point in time. The more appliances you are running at once, the higher your demand will be.

Read the video transcript

How JEA Dual Flex Pricing Works

Customers on the Dual Flex Pricing Pilot are billed based on the highest demand they place on the electric grid during two points of time during their billing cycle:

  1. The highest peak during any one hour period during the billing cycle, and
  2. The highest peak during any one hour period during JEA’s System Peak Hours. 

As a result, pilot participants will see two charges on their monthly bill:

  1. Highest Household Peak Demand for the billing cycle charged at a rate of $5.55 per kW.
  2. Highest Household Peak Demand during JEA System Peak Hours charged at a rate of $7.20 per kW.

JEA's System Peak Hours

Summer Peak Hours

April - October
Monday - Friday, 12 p.m. – 7 p.m.

Winter Peak Hours

November - March
Monday - Monday - Friday, 6 a.m. – 9 a.m.

Weekends and holidays are excluded from JEA System Peak Hours. Holidays include New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

Bill Pricing Example 

Highest Household Peak Demand RateCharge
During Billing Cycle 10.2 kW $5.55$56.61
During JEA System Peak Hours8.6 kW$7.20$61.92
Total $118.53

Understanding Your Household Peak Demand

An oven typically uses 3.4 kW and an air conditioning system uses approximately 4 kW while they are running. Imagine adding a dishwasher (1.2 kW) and a hairdryer (1.8 kW) to the mix – the demand for these appliances can add up quickly. If you use multiple appliances at the same time, your energy can increase dramatically for that specific point in time, creating a “Household Peak Demand.”

Use Our Calculator to Estimate Your Demand

Graphic explaining the average kW demand of common household appliances

Understanding JEA’s System Peak Demand

If many customers are using power at the same time, this may create a JEA System Peak Demand. To cover this peak, JEA must supply additional power to meet the needs of its customers.

If customers lower their Household Peak Demand by using appliances one at a time, JEA power plants can operate more efficiently. When enough residents and businesses do this, we can reduce the need to build more power plants, which may help keep rates lower and protect our environment.

Keys to Success

When you shift your energy use outside of JEA’s System Peak Hours and reduce your Household Peak Demand each day—you may see significant savings.

  • Shift major appliance use outside of JEA System Peak Hours.
  • Always use major appliances one at a time or as few at a time as possible throughout the day.

Tips for Managing Usage

The amount of power you use at one time may surprise you, especially when you use multiple major appliances at the same time. By staggering when you use these appliances throughout the day, instead of all at once, you can help reduce JEA’s costs to generate and deliver energy, helping to keep our rates low. This also helps you save money on your energy bill and puts the power of control in your hands.

  • Consider your heating and cooling system as your base load. If it is running and you need to use a major appliance, change the temperature so your system will not run while you use the other appliance.
  • Use a programmable or smart thermostat to schedule your heating and cooling system to run outside of JEA System Peak Hours or when you are not using other major appliances.
  • Use a timer on your water heater to control when it heats your water. It’s best to schedule it to be off during JEA System Peak Hours and during times you are using other major appliances.
  • Avoid setting a heat pump system to “Emergency Heat” and only raise your temperature setting at the thermostat 1-2 degrees at a time. Abrupt adjustments may trigger the heat strips to turn on. Heat strips typically use anywhere from 5-15 kW while running.
  • Use a timer on your pool pump and/or hot tub. It’s best to schedule it to be off during JEA System Peak Hours and during times you are using other major appliances.

Frequent Questions About the Pilot

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Closed Title:Why is JEA conducting this pilot?
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JEA is required by law to maintain at least 15 percent excess capacity over the community’s highest peak energy usage at any given time. By decreasing the sharp spikes in electric demand that occur during JEA System Peak Hours, JEA hopes to reduce the need to build new power plants, saving customers money and protecting the environment.

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Closed Title:Why was I/my household chosen for this pilot?
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JEA selected customers at random throughout its service territory to participate in the Dual Flex Pricing Pilot.

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Closed Title:What is the difference between being charged for demand and how JEA charges now?
Open Text:

Demand (kW) billing is based on the highest amount of power used during a one-hour period during a billing cycle. Currently customers are charged for their total energy consumption, the number of kWh they use during a billing cycle.

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Closed Title:Why are there two demand charges?
Open Text:

Each demand charge covers a different cost. The JEA System Peak Hours Demand charge pays for electric generation and the highest demand during the billing cycle charge pays for delivery of electricity to your home. JEA charges a higher per-kilowatt amount during JEA System Peak Hours because this is the time most people use the most power and place the greatest demand on JEA to generate electricity to meet the community’s collective needs.

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Closed Title:Can my highest demand for the billing cycle happen during JEA System Peak Hours? If so, do I still have to pay both charges?
Open Text:

Yes, your highest demand for the billing cycle can happen anytime during your billing period, including during JEA System Peak Hours. Since each charge covers a different cost, even when they occur at the same time, you still have to pay for both. When your highest demand for the month occurs during JEA System Peak Hours, you are placing a greater impact on the overall electric system during the busiest time, which costs JEA more to generate. 

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Closed Title:Will my bill be higher on the Flex Pricing Pilot than it is now?
Open Text:

Your bill amount will depend on your energy usage. Since demand (kW) and consumption (kWh) are not calculated the same way, we are not able to look at your previous usage to determine if your bill will increase or decrease in the pilot. However, if you keep your household peak demand as low as possible by using your major appliances one at a time, you have the opportunity to save than if you use your major appliances simultaneously.

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Closed Title:Do I really have to use all of my appliances one at a time to avoid a high bill?
Open Text:

It is best to try and use your major appliances (oven, heating and air conditioning system, water heater, dryer and dishwasher) one at a time, especially during JEA System Peak Hours, to keep your peak demand low. The more appliances you are running at one time, the higher your demand and bill will be. Visit our appliance calculator to understand the impact appliances will have on your bill.

Additional appliances to consider staggering usage times: pool/hot tub pumps, hair dryer, microwave, toaster oven, cooking range. Appliance list only pertains to electric appliances; gas appliances will not affect demand.

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Closed Title:Why doesn’t JEA just increase rates instead of charging for demand?
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JEA doesn’t want to raise rates, but instead tie our customers’ behaviors to true costs. We want to reduce the demand on our power plants, in turn saving JEA and customers money. A rate increase doesn’t solve the demand on generating capacity and dependence on power plants.

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Closed Title:Will JEA definitely implement a demand rate as the default rate for all customers after the pilot is over?
Open Text:

The purpose of the pilot is to test the concept. There will likely be adjustments to the program along the way as JEA moves through the pilot and receives feedback from customers. Once the pilot is completed and evaluated, JEA will decide whether if offering a demand rate to customers is a feasible option.

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Closed Title:Are there any tools available to help me lower my demand?
Open Text:

JEA will offer you online tools to help you understand and navigate your energy usage, including the ability to identify your peak demand. In addition to online viewing of your bill, you will also receive access to an energy usage graph and appliance calculator on jea.com. There is also technology available such as timers, programmable/smart thermostats, and home energy monitoring systems which can help you better manage your demand.*

*JEA will not cover the cost of the technology mentioned above.

Understanding JEA's Rates

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When you receive your bill each month you may wonder what all the different rates, fees and charges actually mean.

COO Melissa Dykes Explains JEA's Rates