Analyzing Your Electric Bill.ppt

 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 $3.82 $0.00057 Transmission 0.00 0.01252 Transition 3.14 0.00000 Generation 0.00 0.04869 TOTAL $6.96 $0.06178 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 ConservationLoad Management Energy conservation is reducing the amount of kwh you use (turning off lights) Load management