ANALYZING YOUR

ELECTRIC BILL

Bob Walker

Met-EdNovember 7, 2007

Session Topics

• Basic charges• Demand

– What is it?– Why bill for it?

• Rate components• Reducing your bill

– Shopping– Energy conservation & Load management– Rate Options

• Seasonal• Time-of-Day

Basic Charges

• Energy (kwh) Charge

• Demand (kw) Charge

What is DEMAND???

• Highest amount of electricity used during a specified interval – “peak load”

• Measured in kw (kwh/hour)

• Charged for highest in billing period

Why Charge for Demand??

• Accounts for time-varying nature of customer loads (loads are not constant)

• Higher demand requires larger utility facilities – wire, transformers, etc.

• Allocates fixed costs fairly among customers

Rate Components

• Distribution Charge

• Transition Charge

• Transmission Charge

• Generation Charge

Met-Ed Rate GS Medium

Demand (kw) Energy (kwh)

Distribution $3.82 $0.00057Transmission 0.00 0.01252Transition 3.14 0.00000Generation 0.00 0.04869

TOTAL $6.96 $0.06178

REDUCING YOUR ELECTRIC BILL

Shopping

• With deregulation customers may buy their supply (Transmission & Generation) from a third party provider.

• For a customer to reduce their bill their supplier’s cost must be less than the utility’s Price to Compare.

• Price to Compare = Transmission kwh charge + Generation kwh charge

• For Rate GS Medium, Price to Compare = $.01252 + .04869 = $.06121

Rate Caps• Deregulation established caps for the various

rate components• Generation cap for PPL will expire 12/31/2009• Generation cap for Met-Ed will expire 12/31/2010• With the cap, Met-Ed generation + transmission

charges are approximately $0.06 per kwh• Average market price is over $.08 per kwh• No Met-Ed customers are shopping now – this

will change in 2011• When utility generation rates increase there will

be opportunities for savings through shopping.

Energy Conservation&

Load Management

• Energy conservation is reducing the amount of kwh you use (turning off lights)

• Load management is reducing your demand (reducing equipment wattage, rescheduling uses)

• For every 100 kwh reduced you save

100 x $0.06178 = $6.18

• For every 1 kw reduced you save $6.96

Rate Options

• Time-of-Day – could provide savings if highest demand occurs during off-peak hours

Rate Options

• Seasonal – cost is higher in summer, lower non-summer

• For Met-Ed Rate GS Medium:Summer Demand = $13.40/kwNon-Summer Demand = $4.79/kwStandard Demand = $6.96/kw

Summer Energy = $0.06823/kwhNon-Summer Energy = $0.06110/kwhStandard Energy = $0.06178/kwh

• Summer months are June, July, August & September

• Contact you utility for other rate options that might benefit you.