That's how the other utility in the area does it, about those same prices too.When I set mine up, the Po Co would run a KwHr credit for 12 months and then pay it. They soon changed it to paying it every month, which is way less of a good deal. Buy it at 0.05 Kw/Hr and I pay just under 0.20 KwHr
The co-op I'm on has a ton of seasonal customers so their summer load is higher, might be how they justify it. There is a minimum charge of $26/month that I'm paying no matter what as well.
They tried to go to a system like you describe a few years ago but the 7 net meter customers that had already signed up threw a big stink and caused them to retract it.