Across the nation, utility customers are facing rising electric costs driven by multiple factors: higher fuel prices, infrastructure upgrades, storm hardening and cybersecurity needs.
OUC’s approach to affordability
While utilities elsewhere are responding with higher rates, OUC is taking a different approach — one designed to keep electricity affordable by giving customers more insights into how their energy habits impact their bill.
That’s the idea behind OUC’s multiyear strategy, called PeakSHIFT, designed to help customers lower costs, improve grid reliability and support delaying future generation needs.
Competitive rates
OUC customers benefit from some of the lowest residential electric rates in the nation, as OUC’s average residential rate is below both the state and national average, and that of many major utilities.
OUC maintains this affordability through strategic and innovative long-term planning. Programs like PeakSHIFT are designed to help preserve this advantage as Central Florida continues to grow.
Leading the country in affordable energy
From 2022 to 2024, OUC’s average residential rate was just 13.97 cents per kilowatt-hour — well below the national average rate of 15.26, according to data from the U.S. Energy Information Administration. In stark comparison, regions like Hawaii, Connecticut and California rank among the costliest in the nation for electricity, with averages of 43, 28 and 27 cents per kilowatt-hour, respectively, when weighted by residential electricity sales.
Responding to growing demand
Meanwhile utilities across the country also are investing billions to expand and modernize the grid as more homes, businesses, electric vehicles, and new technologies increase their electric usage.
“Keeping energy affordable takes all of us working together. When customers have simple tools to manage their energy use more efficiently, we can reduce costs across the community without sacrificing comfort,” said Linda Ferrone, OUC Chief Customer & Marketing Officer. “That’s what PeakSHIFT is all about.”
An innovative solution
Central Florida also faces growing energy demands, but OUC is taking a community-focused approach, instead of simply building more infrastructure.
Several years ago, OUC asked a different question: What if we empowered customers with new incentives, more information and better tools to help manage when they use electricity? Could these changes reduce strain on the grid – and help keep long-term costs down?
That idea became PeakSHIFT– a multiyear approach introducing a unique, new residential demand program and tools to help customers manage their energy in the most efficient, knowledgeable and equitable way possible.
The new DemandLevel program launches in November.
Understanding demand
The region’s grid must be able to accommodate two important needs: total energy used over a length of time and total energy used at any one moment.
High-use periods — such as early evenings, when thousands are simultaneously returning from work and starting home activities — are known as peaks. Increased peaks can lead to higher bills for everyone, as the utility must build and maintain a system big enough to handle the highest spike.
To help delay such needs, OUC’s new DemandLevel program will help customers track and control both their overall electricity use and their peak.
New DemandLevel program
To do this, OUC is introducing two updates to how charges are calculated: a lower electric rate per-kWh and a new DemandLevel charge.
- The demand charge is based on the highest level of electricity the customer used at one time (their peak) in the prior billing cycle. The charge is one of three tiers, depending on the highest kilowatt reading in a 15-minute window.
- To help with affordability, OUC also is lowering customers’ electric rate by 12.5% per kilowatt-hour. This reduction is estimated to offset most of the new DemandLevel charge, depending on a customer’s usage patterns.
Maximizing savings
Keeping one’s peak demand low doesn’t require they use less energy overall — though that helps — but, rather, that they spread out their electricity usage to minimize spikes.
Small changes — like waiting for one appliance to finish before starting another — can help customers avoid a higher tier and still maintain comfort.
Bills can also be reduced by focusing on lowering one’s overall usage through energy-efficient appliances, weatherization and behaviors.
Tools for customers
To help customers better understand their energy patterns and make simple adjustments, OUC has launched a free online tool with personalized support. With the new My OUC Energy Coach, customers can track their usage throughout the month, get actionable, custom insights to take action, and receive proactive alerts to remain informed throughout the billing cycle.
Keeping prices lower for all
By working together with customers to use the grid most efficiently and minimize spikes, OUC can deliver power to everyone at the lowest possible cost and help delay future generation needs.
PeakSHIFT reflects OUC’s commitment to smarter solutions that enhance reliability, long-term affordability, sustainability and resiliency.
Editor’s Note: This article was originally published as a paid advertorial and is being republished on the OUC Blog for informational purposes.
