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BILLING OPTIONS
There are two electricity billing options available for residents.
There are no real advantages to which option you choose, except with Option B you only have to take care of one bill.
POWER CHARGES
Electricity is measured in units known as kilowatt-hours (KWH). The amount you pay per month depends on the price of the electricity and the amount of electricity you use.Your monthly electric bill is calculated by multiplying the cost of a kilowatt-hour by the number of kilowatt-hours used. The average residential customer in our region of Pennsylvania uses approximately 500 KWH per month. |
Breaking It Down Your electric bill is made up of two components: your delivery charge and your power supply charge. Your power supply charge is about one-quarter to one-third of your bill and is the only part of your bill that is decided by the company you chose to deal with.
The rates charged for electricity vary depending on the distribution companies. In Pennsylvania, electric rates are about 11 cents per kilowatt-hour. The average resident's bill is $55.00 per month.
.11 x 500 KWH =$55.00 |
Delivery charge includes distribution, transmission, and transition charge all go to the construction and maintaining of energy sources. Even though the price for delivery service will vary depending on which town you live in, your choice of supplier has no affect on the costs of delivery.
Transition Charge This charge allows your distribution company to recover past costs including investments made in generating plants and power contracts, known as transition costs.
Residential or household meter and equipment used to "read" the meter. | Inside of a commercial meter. |
Household Bill Example: Brad pays a total of 10 cents per KWH for electricity. Of that 10 cents, the delivery charge is 3 cents per KWH and power charges are 7 cents per KWH. On average, Brad uses 500 KWH per month. How much is his monthly bill?
ELECTRIC BILL .10 x 500 KWH =$50.00 |
What portion of the bill is the power supply charge?
POWER SUPPLY .07 x 500 KWH =$35.00 |
This $35.00 portion is the only part of the bill that companies look at for competition. Each power supply company has a different power supply charge.
Brad will pay an average of $15 per month to his distribution company no matter which competitive power supplier he chooses.
DISTRIBUTION .02 x 500 KWH =$15.00 |
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