| Each month you open your electric bill hoping that | | | | Sign up for time-of-use rates offered by your |
| your total bill will not keep rising. But it does. In | | | | utility |
| these troubling times you need to save all you | | | | Check with your utility and see whether |
| can. You want to save on your electric bill. Now | | | | time-of-use rates are an option for you. If you |
| you are determined to do something about it. This | | | | are home mostly on weekends or evenings |
| article will help you understand those electric | | | | (off-peak), you may be able to save money by |
| rates, fees and charges that make up your total | | | | signing up. Most low off-peak rates are in the |
| electric bill. Then you can optimize your use of | | | | evenings and on weekends. |
| electricity for the greatest savings. | | | | Be Careful! If you sign up for time-of-use rates |
| What does your electric bill tell you about how | | | | and find yourself using all of your power during |
| you use electric power? | | | | the peak rate time, you could end up paying |
| Take another look at your electric bill. In addition | | | | more than you would have had you not signed up! |
| to telling you the total amount you owe for the | | | | Additional charges used by some utilities |
| month, your bill gives additional information to help | | | | There are an almost infinite combination of use |
| you understand your monthly amount. Your | | | | charges, fees, and rate structures in use |
| monthly bill tells you how many kilowatt-hours | | | | throughout the world. Engineers, utility |
| (kWhs) you used in the current month. | | | | accountants, regulators, legislators, public |
| Your total dollars billed per kilowatt-hour is | | | | advocates, environmentalists and others are |
| generally not given on your bill. You can do the | | | | constantly at work coming up with additional |
| math yourself -- simply divide your total bill for | | | | electric rate structures that provide incentives and |
| the month by the total kilowatt-hours you used | | | | or disincentives. |
| that month. | | | | For example, high peak-use rates are intended to |
| Your bill also gives your power usage last month | | | | encourage the user (you) to reduce your power |
| and a year ago. Your monthly bill can be a tool for | | | | use during high-cost periods; for example, do your |
| you to track the results of your household | | | | laundry at night in the summer, not during the hot |
| energy conservation. Some utilities include a bar | | | | day when air conditioning loads are at their |
| chart showing monthly kWhs used over the last | | | | highest. We can look to California to see more |
| year. If your house is air-conditioned, that big | | | | examples of complicated rate tariffs (rate |
| hump in the chart's summer months reflects your | | | | structures). Some CA bills include two or three |
| air conditioning load. | | | | basic rates: |
| Your bill says nothing about how much your | | | | - baseline allowance billed at a lower rate |
| appliances cost to operate. | | | | - medical baseline allowance (at an even lower |
| Look at all those electric rates, fees, taxes, | | | | rate for qualified households) |
| charges and surcharges | | | | - non-baseline rate (at a higher rate) The above |
| Somewhere on your bill is your "price to | | | | rates are applied to your monthly kWhs used to |
| compare" per kilowatt-hour as of a certain recent | | | | come up with your total bill. To help you |
| date. It is the average price you pay for electric | | | | understand the components of your total bill, a |
| supply [or commodity]. If your state and electric | | | | breakdown of your total bill is given for: |
| utility offers "supply choice" you may be able to | | | | - electric energy charge |
| obtain your electric supply from an alternative | | | | - rate adjustment(-) due to capped rates |
| supplier for less than your utility's "price to | | | | - California alternative rates for electricity (low |
| compare." You can also use your 'price to | | | | income) |
| compare" to estimate your annual electric supply | | | | - transmission charge |
| charge from your electric utility. Simply multiply | | | | - distribution charge |
| that rate by the total number of kilowatt-hours of | | | | - state-mandated public service program charge |
| electricity you use in a year. (Some utilities include | | | | - nuclear decommissioning charge |
| on their bills the number of kWhs you used over | | | | - trust transfer amount (bond repayment charge) |
| the last year.) | | | | - competition transition charge (to be phased out) |
| But your electric supply charge is only part of | | | | Consider interruptible electric service rates |
| your electric bill. In addition to the supply charge | | | | You utility may offer you a discount on your |
| there are: | | | | electric rates if you agree to interruptible service. |
| - electric delivery charges | | | | During times of peak electric loads (such as hot |
| - state taxes local taxes | | | | summer days) your electric utility can reduce its |
| - other charges, depending upon your utility and | | | | load by interrupting your electric service. This may |
| your state regulatory agency Wait, there may be | | | | apply just to your air conditioner, or it many apply |
| still other charges on your bill: | | | | to other appliances. Check with your local electric |
| - power factor charges | | | | utility. |
| - time of day adjustment | | | | Understand your electric bill and save! |
| - time of year adjustments | | | | Take the time to dig into the rates you are being |
| - environmental surcharges fuel adjustment | | | | charged on your electric bill. Contact your local |
| - power factor charges | | | | utility and explore your options. You can save |
| - time of day adjustments | | | | money. |
| - time of year adjustments | | | | Know how much power your household appliances |
| - environmental surcharges | | | | are using and optimize their use. |
| - fuel adjustments | | | | |