ABSTRACT
While their names may vary, some of the most common are: customer charge (fixed for each rate class), metering/billing (fixed for each rate class), generation (i.e., “supply”), transmission, distribution, fuel adjustment charge, program charges (e.g., efficiency, low-income, grid, stranded costs), power factor, also called “reactive power”, extra utility equipment (specific to a customer), and taxes (not found in tariff). This chapter looks at each of them. Every bill has a fixed “customer charge” based on rate class. Think of it as a connection fee. It appears each month, even if no electricity is used. Taxes may be charged as $/kWh (i.e., a “utility tax”) and/or as a fixed percent (e.g., called sales, and/or gross receipts taxes) of the dollar value of an electric bill. The chapter presents pie chart showing the relative impact of major rate components on a typical C&I electric bill.
