Do You Want to Save on Your Electric Bill? Understand Your Electric Rates, Fees and Charges

Each month you open your electric bill hoping that your total bill will not keep rising. But it does. In these troubling times you need to save all you can. You want to save on your Mepco Bills . Now you are determined to do something about it. This article will help you understand those electric rates, fees and charges that make up your total electric bill. Then you can optimize your use of electricity for the greatest savings.

What does your electric bill tell you about how you use electric power?

Take another look at your electric bill. In addition to telling you the total amount you owe for the month, your bill gives additional information to help you understand your monthly amount. Your monthly bill tells you how many kilowatt-hours (kWhs) you used in the current month.

Your total dollars billed per kilowatt-hour is generally not given on your bill. You can do the math yourself — simply divide your total bill for the month by the total kilowatt-hours you used that month.

Your bill also gives your power usage last month and a year ago. Your monthly bill can be a tool for you to track the results of your household energy conservation. Some utilities include a bar chart showing monthly kWhs used over the last year. If your house is air-conditioned, that big hump in the chart’s summer months reflects your air conditioning load.

Your bill says nothing about how much your appliances cost to operate.

Look at all those electric rates, fees, taxes, charges and surcharges

Somewhere on your bill is your “price to compare” per kilowatt-hour as of a certain recent date. It is the average price you pay for electric supply [or commodity]. If your state and electric utility offers “supply choice” you may be able to obtain your electric supply from an alternative supplier for less than your utility’s “price to compare.” You can also use your ‘price to compare” to estimate your annual electric supply charge from your electric utility. Simply multiply that rate by the total number of kilowatt-hours of electricity you use in a year. (Some utilities include on their bills the number of kWhs you used over the last year.)

But your electric supply charge is only part of your electric bill. In addition to the supply charge there are:

electric delivery charges

state taxes local taxes

other charges, depending upon your utility and your state regulatory agency

Wait, there may be still other charges on your bill:

power factor charges

time of day adjustment

time of year adjustments

environmental surcharges fuel adjustment

power factor charges

time of day adjustments

time of year adjustments

environmental surcharges

fuel adjustments

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