Your Electric Bill Costs:
When you recieve your monthly electric bill, it can be divided up into three costs. Some of these costs you can control if you have energy choice in your area while other costs are decided by your utility:
- Electricity Cost:
With energy choice, you can take control of this portion of your bill. Your usage will be listed as what you pay per kilowatt hour (kWh) and can vary month to month if you do not switch. To avoid fluctuating electricity costs, lock in a fixed rate plan. This will make sure that your rate does not change during the term of your contract.
- Capacity cost:
This cost is to make sure that electricity is available to us all of the time and limit the number of power outages. To do this a capacity market is created which makes sure no matter the weather or temperature we will have electricity. To maintain this capacity market and make sure that electricity is available to everyone all the time, a monthly cost is added on to our electricity bill.
- Delivery Cost (aka Transmission Rates):
Another part of many electricity bills is the cost of getting the electricity delivered to your home or business. These charges are usually called transmission rates and go to covering the cost of the continuous maintainance and upkeep of systems to ensure electric delivery.