Gunnison Co. Electric Announces New Rate Structure Effective Jan. ‘26

Gunnison County Electric Association (GCEA) announces it will introduce a new rate design for residential and small commercial customers beginning January 1, 2026. This rate design change is part of a five-year transition, which will modernize GCEA’s rate structure to equitably recover operational costs across all rate classes and provide members with another way to control their electric bills.
For years, GCEA has educated its members to use less energy through energy efficiency and conservation to save money on their bills. Energy usage patterns have evolved over time and demand for the electric grid is greater than ever, especially during peak hours when people head home from their daily activities to cook and take care of household chores. With GCEA’s rate design change, members can choose not only to save and conserve energy but also to shift their electric usage away from peak hours to lower their peak demand and reduce their monthly bill.
GCEA is providing members with greater control by separating its current energy (kWh) charge, which currently combines the cost of total energy use with the cost of peak demand on the electric grid. GCEA’s new three-part rate structure will include the following components: service availability, energy usage (kWh), and peak demand (kW) charges.
The peak demand charge will be based on the members’ highest hour of electric usage each month during peak hours from 5 p.m. to 9 p.m., Monday through Saturday, when demand for electricity is at its highest. Sundays are considered “off-peak” all day.
This change will not only give members two ways to lower their bills, but will also promote rate equity among GCEA members. Under this new rate structure, each member will pay for their contribution to GCEA’s peak demand, independent of the amount of electricity they consume.
This new rate component will not create additional revenue for GCEA. As a not-for-profit rural electric cooperative, GCEA operates at cost. The peak demand charge will be phased in over five years to facilitate a gradual transition. Since a portion of GCEA’s revenue will be recovered through the peak demand charge, the energy charge will be lower than it would be otherwise.
“This change will promote fair cost recovery among members, give members a new way to control their monthly bill, and send a clear signal to members about actions they can take to help GCEA keep its rates as low as possible,” said GCEA CEO Mike McBride.
GCEA encourages members to become familiar with their electric bill and identify their current peak demand reading. Members may also utilize the SmartHub app to track current energy usage and strategize how to reduce peak demand. Future member education and communication will assist members with how to prepare for this change.
For more information on the new peak demand charge, please visit gcea.coop.