Why am I being charged an Energy charge, Base charge, and a Demand charge on my electric bill?
Each charge on the electric bill covers different costs associated with providing electrical service to the customer.
Energy charge – A variable charge to cover the cost of energy used in the billing period, measured in kilowatt hours (kWh). It is intended to cover the costs of purchasing power from our wholesale power and transmission provider.
Base charge – A flat fee to cover the fixed costs of operating the utility. Examples include the office building, billing and metering systems and equipment, office personnel, taxes, and debt service.
Demand charge – A variable charge based on the highest rate of electric use during the billing period, measured in kilowatts (kW). It covers the costs of maintaining the distribution system, including poles, wires, substations, trucks, and line crews.