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
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
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
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
• 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