How is my bill calculated?

Volumetric-only rates

A volumetric-only rate charges a ¢/kWh* rate for electricity consumed. Most residential and small commercial rates are volumetric only. There are two types of volumetric-only rates, tiered and time-of use.

A tiered rate has different prices for different amounts of usage. As usage increases over the billing period, customers pass from the lower priced block of usage to the higher priced blocks. The lowest price block of usage is called baseline.

A time of use rate has different prices for when energy is used. Electricity consumed at peak times is charged at a higher price than electricity used at off-peak times. These times are stated within the tariff.

 

Demand rates

A demand rate charges customers a $/kW** for their demand as well as a ¢/kWh rate for electricity consumed. Demand charges are common for commercial, industrial and agricultural rates.

Demand charges can be either coincident or non-coincident.

Coincident charges are different amounts based on when the highest amount of energy is demanded. Peak times have the highest charges while off-peak have the lowest.

Non-coincident charges are based on a customer's highest demand, regardless of when it occurs.


* A kilowatt-hour (kWh) is the amount of electricity that will power a 100 watt lightbulb for 10 hours. For example, the average washing machine may use about 1 kWh per load.
** A kilowatt (kW) is the flow of electricity used at one moment in time. For example if the one washing machine described above ran 10 loads, the household would use 10 kWh. If there were 10 washing machines all running at once, the household or business would be demanding 10 kW, even though the amount of electricity used would still be 10 kWh.
 


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