WACO – It’s called “Demand Ratchet” pricing, and some say it’s a loophole that allows power companies to gouge schools, churches and other organizations for profit.
Your electrical bill is divided in two parts, the cost of the energy and the cost of delivering it.
“Demand Ratchet” pricing means the rate for delivery is based on peak usage. The peak can occur in one 15-minute period, but up to 80 percent of the cost of delivery for those 15 minutes gets applied every month, all year.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.