Residential rates for electricity are charged using tiered pricing. Tiered pricing means different rates are charged depending how much energy you use. The less energy a customer uses, the less energy the customer is charged at a higher rate. By staying in a lower tier, customers pay less. Tiered pricing encourages customers conserve energy and use it efficiently.
As an example, the breakdown of the energy charges for a residential customer who uses 1,240 kWh would be:
|1,000 kWh x 7.8481 cents (tier 1)||$78.48|
|+||240 kWh x 9.2661 cents (tier 2)||$22.24|
Alternately, if that same customer used only 500 kWh during the same time period, less energy would fall into the higher priced second tier for a total of:
|500 kWh x 7.8481 cents (tier 1)||$39.24|
|+||0 kWh x 9.2661 cents (tier 2)||$0|
Residential Tiered Rates
Service Charge per month: $8.00. See our Bill Glossary for definitions about the charges and terminology on your bill.
|Tier 1||Tier 2|
|Rate (cents per kWh)||7.8481¢||9.2661¢|