So, you’ve received your latest electricity bill and there are all these terms or words and you have no idea what they mean. Don’t worry you aren’t the only one. We have put together a list of common charges on your electricity bill and what they mean.
Base Charge – A flat fee applied each month regardless of the amount of kilowatt (kWh) used.
Current Charges – The current charges for electric service as disclosed in the customer’s terms of service document, including applicable taxes and fees. If the customer is on a level or average payment plan, the level or average payment due shall be clearly shown in addition to the current charges.
Demand Charge – A charge based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designed period, during the billing cycle.
Energy Charge – A charge based on the electric energy (kWh) consumed.
Meter Charge – A charge assessed to recover a TDU’s charges for metering a customer’s consumption, to the extent that the TDU is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.
Recurring Charges – Identifies and itemizes any recurring charges other than for electric service.
Non-Recurring Charges – Identifies and itemizes any non-recurring charges such as late fees, returned check fees, restoration of service fees, or other fees disclosed in the Retail Electric Provider’s terms of service contract provided to the customer.
New Services or Products – Notice of any new products or services being provided to the customer since the pervious bill.
Changes in Rates – Any change in the customer’s rates or charges due to the variable rate feature of the Terms of Service contract.
City Sales Tax – Sales tax collected by authoritized taxing authorities, such as the state, cities, and special purpose districts.
Advanced Metering Systems Surcharge – A PUC-authorized charge for electric delivery companies to recover the costs for their Advanced Metering Systems. This charge will be shared among all electricity users who receive an Advanced Meter. Your monthly charge will be added to your electricity bill for the next several years.
Competition Transition Charge – A charge assessed to recover a TDU’s charges for nonsecuritized costs associated with the transition to competition.
Energy Efficiency Cost Recovery Factor – A charge assessed to recover a TDU’s costs for energy efficiency programs, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.
PUC Assessment – A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.
REP Charges – Retail Electric Providers may bundle all charges associated with your electric service into the price per kWh or they may separate the charges using the following:
TDU Delivery Charges – Charge to cover the cost of moving electricity from the generation plant to your home.
Transmission Distribution Surcharges – One or more TDU surcharge(s) on a customer’s bill in any combination. Surcharges include charges billed as tariff riders by the TDU.
Transition Charge – Utilities are allowed to securitize or refinance their regulatory assets and/or stranded costs (assets that become uneconomical as a result of deregulation) as long as it benefits ratepayers. Securitizing debt provides funding at a lower cost than traditional utility funding. Utilities are also allowed to recover the transaction costs of securitization through this fee.
System Benefit Fund – A non by-passable charge set by the PUC, not to exceed 65 cents per megawatt hour. Pays for energy efficiency and customer education programs.
Miscellaneous Gross Receipts Tax Reimbursement – A fee assessed to recover he miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1000.
Nuclear Decommission Fund Fee – Fee that covers the cost of safely removing a nuclear generation facility from service, reducing residual radioactivity to a level that permits release of the property for unrestricted use and termination of license. Only the local wires company or transmission and distribution utility can assess this fee to any company that uses its wires to deliver electricity to consumers.
Have a term we don’t have listed? Contact us and let us know what it is. We can help with any questions you may have.