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HomeMy WebLinkAboutUnderstanding Electric Bill.pdfRuss Jones 2217 Update A weekly news summary for reporters and editors about Idaho Power and related subjects. Produced by the Idaho Power Corporate Communication Department There are a number of reasons your bill may be different this year, including colder weather causing higher usage, an increase in general base rates, power and fixed cost adjustments and the energy efficiency rider. We also have for the first time a tiered-rate structure, similar to that of the summer months, in effect dur- ing the winter. Monthly energy use is now billed year-round in three usage tiers: 0 – 800 kilowatt-hours (kWh), 801 – 2,000 kWh, and more than 2,000 kWh. Usage in the highest tier is charged the highest rate. Therefore, any kilowatt-hours you con- serve present the biggest opportunity to save on your monthly bill. Tiered rates are designed to promote energy efficiency, and they help custom- ers be aware of opportunities to manage their personal usage and monthly bill. Understanding the other charges on your electric bill is important. As you have probably seen, there are several line items other than your energy charge that add to your total bill. Service Charge: This is a fixed monthly charge recovering many of the costs which do not vary with a change in en- ergy consumption, like generation plants, transmission and distribution lines and customer meters. Here are five no-cost ways to cut your energy use right now and save on your bill: 1. Set your thermostat to 68 degrees when you are at home (health permitting) and even lower at night and when you are away. 2. Lower your water heater temperature to 120 degrees (only if your dishwasher is early 1990s or newer). 3. Wash full loads of laundry. 4. Turn off lights when not in use. 5. Open your curtains and blinds during the day to let the sun heat your home. Visit www.idahopower.com/ energyefficiency for more energy- and money-saving programs, tips and tools that are right for you and your home. Understanding Your Electric Bill How Can I Lower My Bill? For more information contact: Stephanie McCurdy 1-208-388-6973 PCA: The Power Cost Adjustment is an annual filing that balances last year’s forecasted power supply costs of provid- ing energy to customers to actual expens- es incurred. This is affected greatly by the year-to-year changes in our hydroelectric generating conditions and fuel prices. FCA: The Fixed Cost Adjustment annually adjusts rates up or down to recover the difference between the fixed costs authorized by the Idaho Public Util- ities Commission and the fixed costs we actually recover from customers through energy sales during the previous year. Franchise Fee: A franchise is imposed on Idaho Power by a city to allow us to locate electrical facilities in that city. Many cities charge their residents this fee, which is based on a percentage of each customer’s Idaho Power bill. Idaho Power collects the franchise fee and forwards it to the city—the franchise fee does not go to the company. Energy Efficiency Services is a charge that allows the company to fund its ongoing investment in energy efficiency programs and initiatives which help cus- tomers save energy and money. Feb. 8, 2010