Electric Rates -- Understanding Your
Rate Schedule
Most commercial billing contains charges for the following
items:
Basic Customer Charge -- A flat monthly
fee that's the same no matter how much or how little electricity you use.
It covers expenses like metering, billing and meter reading.
Demand Charge -- A surcharge that is based
on your peak electrical use. It is the rate we charge to maintain the extra
capacity necessary to meet your highest electrical demand.
Energy Use Charge -- The amount you pay
for the power you use, calculated per kilowatt-hour. Your charges vary each
month depending on usage.
Fuel Charge -- Like the price of everything
else, the cost of the coal, uranium, oil or gas we use to generate electricity
tends to rise over time. The fuel charge represents the change we anticipate
in our fuel expenses. If the actual amount is more or less than our projections,
an adjustment is made in your billing. We make no profit on fuel expenses
-- your fuel charge represents our actual cost.
Utility Taxes -- Local governments -- cities,
counties, townships, and so on -- levy taxes on electric customers. These
rates vary by municipality, and are based on usage or flat fees.
