When you think about your electric bill, you probably like most people, get very intimidated. With its many different line items charges, references to meter numbers and account numbers, rate schedule codes, etc. The electric bill can be very hard to understand and when you try to implement ways to save, how will you know when what you have done has worked? Before you can accurately analyze an electric bill and determine ways to reduce it, an understanding of the items being charged on it is a must. Sometimes, the bill itself and the items thereon and furthermore the way these items are being charged and manipulating them are the easiest and best way of reducing your electric bill. Rarely, does one utility company bill the same as another. Some items are billed by one company and not by another and so on. The electric rates schedule spells out which charges are being billed and at what rate. For example, your price per kilowatt hour might be 10 cents or 5 cents depending on your rate. There are some basic rate classifications and distinctions that will likely be present and billed for by most utilities companies. Each of these billing distinctions will depend upon the rate schedule classification you are on.
What Is A Rate Schedule Classification?
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The rate schedule classification is the rate schedule that your utility company has decided to bill your account and or meter under. Most electric utilities have several rate schedule possibilities available to each customer. The utility company generally puts each customer on the most basic applicable rate possible- not always the least expensive. It is usually the customer's responsibility to research the tariff to find and determine whether or not any other rates are available and or would be beneficial. The tariff lists out the different rates available and explains the qualifications for each in addition to the charges to be charged by each. A tariff is governed by a regulatory body like the Public Service Commission.
Rate Schedule Examples
The rate schedule governs everything related to the charges you see on your electric bill. The customer charge, the demand or peak draw charge, and of course the kWh charge are all based on the electric rate schedule you are being billed under. These rates have names like General Service (GS), General Service Demand (GSD), General Service Demand Time of Use (GSDTOU), etc. A manufacturing company might be put on GSD rate. This rate would mean that this customer, in addition to paying for the customer charge, taxes, and kWh charges, would also be charged a demand charge. Sometimes a demand charge can be greater than any other charge on the bill. What if this customer could save money simply by opting out of this rate and change to another rate like GS or GSTOU? Because the optional rates are hidden in the tariff, unless the customer has read the tariff and understood it, how will they know if they are on the best rate? That is where a professional bill auditing company can come in. They can determine if you are being billed correctly and are on the best rate.
Electric Rates - Why Have an Audit? ELECTRIC
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