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About the Load Factor Adjustment

The Load Factor Adjustment (LFA) is applicable to new services and new interconnections within our system after Dec. 30, 2015. The LFA does not apply to existing IREA customers unless they take an action after that date that would require the installation of a new service or interconnection, such as the construction of a new service location or the interconnection of a rooftop solar system or other net-metered generator.

Load Factor Adjustment FAQs

Is the Load Factor Adjustment (LFA) applicable to my service?

If you are an existing customer, the LFA will not apply to you as it is only applicable to new metered locations or new small generation interconnections after Dec. 30, 2015.

How is the Load Factor determined?

LF = Total billed kWh / (Peak kW * # days in cycle * 24 hours)

What costs are involved in providing service to residential customers, and how do these costs relate to the charges on your current residential customers’ bills?

IREA has costs in three areas as it relates to providing service to residential customers: Customer Costs, Grid Costs and Energy Costs.

What customers are affected by the LFA Rate Rider?

New metered locations or new small generation interconnections after Dec. 30, 2015, in which the customer’s energy consumption is not substantial compared to the power required to serve them (LF is less than 10% or 9%, depending on the rate). Power requirement is measured by their peak kW and energy consumption is measured by the billable kWh’s delivered to them. In months in which a customer uses facilities intermittently, such as seasonal cabins, small generator interconnections, outbuildings using equipment for short term, etc., the bill may reflect a low load factor.

Will a customer have the ability to control the load factor, and if so, how?

If the customer is capable of reducing the kW peak by avoiding the usage of multiple high wattage appliances at the same time and not reducing the total energy consumed, it is possible.

What is a typical peak kW of an average residential customer?

All customers use power differently, so it is difficult to stipulate an average amount. For example, customers that have an electric vehicle with the ability to “quick charge” could peak over 15 kW depending on the voltage requirements of the charging station. If the customer only uses the standard charge, this could reduce their peak kW to less than 8 kW. A person who bakes cookies while doing laundry for a 60-minute interval, will have a higher peak kW than someone who bakes cookies for an hour and then does laundry at a separate 60-minute interval.

What is the purpose of the LFA Rate Rider?

Our residential rates are billed based on energy (kWh) consumption only. When customers use less energy (kWh) without reducing their capacity requirements (kW), the association does not receive the necessary revenue to cover the cost of providing them power. As more and more intermittent energy consumption is introduced into our service territory, the need to establish rates that are fair based upon how customer’s use their power becomes very important to avoid large subsidies and rate increases.

My load factor is less than 9% (ALF Rate) or 10% (CSLF Rate), but I’m not being charged a Load Factor Adjustment (LFA). Why?

If your billing period is less than 27 days, the LFA will not be applicable. IREA will not apply the LFA to customers for partial months of service, e.g. when they move in or move out mid-billing cycle.

If I am not subject to the Load Factor Adjustment (LFA), why is it shown on my bill?

For informational purposes only. If your home has a demand meter, both the peak kW and load factor will display on your bill so you can see how you use your power. If you are considering rooftop solar, the developer/installer can use this information to calculate your potential savings.

IREA's board of directors has approved changes to the association's rates and regulations that will go into effect in September. For additional info, visit our Rate Redesign page.
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