Transcript ANALYZING YOUR ELECTRIC BILL

ANALYZING YOUR
ELECTRIC BILL
Bob Walker
Met-Ed
November 7, 2007
Session Topics
• Basic charges
• Demand
– What is it?
– Why bill for it?
• Rate components
• Reducing your bill
– Shopping
– Energy conservation & Load management
– Rate Options
• Seasonal
• Time-of-Day
Basic Charges
• Energy (kwh) Charge
• Demand (kw) Charge
What is DEMAND???
• Highest amount of electricity used during a
specified interval – “peak load”
• Measured in kw (kwh/hour)
• Charged for highest in billing period
Why Charge for Demand??
• Accounts for time-varying nature of
customer loads (loads are not constant)
• Higher demand requires larger utility
facilities – wire, transformers, etc.
• Allocates fixed costs fairly among
customers
Rate Components
• Distribution Charge
• Transition Charge
• Transmission Charge
• Generation Charge
Met-Ed Rate GS Medium
Demand (kw)
Energy (kwh)
Distribution
Transmission
Transition
Generation
$3.82
0.00
3.14
0.00
$0.00057
0.01252
0.00000
0.04869
TOTAL
$6.96
$0.06178
REDUCING
YOUR ELECTRIC BILL
Shopping
• With deregulation customers may buy their
supply (Transmission & Generation) from a third
party provider.
• For a customer to reduce their bill their
supplier’s cost must be less than the utility’s
Price to Compare.
• Price to Compare = Transmission kwh charge +
Generation kwh charge
• For Rate GS Medium, Price to Compare =
$.01252 + .04869 = $.06121
Rate Caps
• Deregulation established caps for the various
rate components
• Generation cap for PPL will expire 12/31/2009
• Generation cap for Met-Ed will expire 12/31/2010
• With the cap, Met-Ed generation + transmission
charges are approximately $0.06 per kwh
• Average market price is over $.08 per kwh
• No Met-Ed customers are shopping now – this
will change in 2011
• When utility generation rates increase there will
be opportunities for savings through shopping.
Energy Conservation
&
Load Management
• Energy conservation is reducing the
amount of kwh you use (turning off lights)
• Load management is reducing your
demand (reducing equipment wattage,
rescheduling uses)
• For every 100 kwh reduced you save
100 x $0.06178 = $6.18
• For every 1 kw reduced you save $6.96
Rate Options
• Time-of-Day – could provide savings if
highest demand occurs during off-peak
hours
Rate Options
• Seasonal – cost is higher in summer, lower non-summer
• For Met-Ed Rate GS Medium:
Summer Demand = $13.40/kw
Non-Summer Demand = $4.79/kw
Standard Demand = $6.96/kw
Summer Energy = $0.06823/kwh
Non-Summer Energy = $0.06110/kwh
Standard Energy = $0.06178/kwh
• Summer months are June, July, August & September
• Contact you utility for other rate options
that might benefit you.