What Is Block 1 And Block 2 On Electricity Bill?

This fixed monthly payment covers some of the fixed costs of having electric service, expenditures that the firm incurs regardless of how much electricity is utilized (i.e. cost of meters, meter reading, record-keeping, etc.). In Oregon, some non-residential rates include a Load Size Charge as part of the Basic Charge. This charge also includes costs related to the customer’s demand (kW), such as the type and amount of equipment required at the site or on the transformer.

As part of the Pacific Northwest Electric Power Planning and Conservation Act, the Bonneville Power Administration (BPA) credit is applied to all kWh usage between 0-1000 per month on qualifying Oregon and Washington customers’ bills.

This fee is collected on behalf of the city, usually in accordance with a city ordinance. All taxes are paid to the city that requires the tax for its operation.

This fee covers some of the costs of delivering power from a source to a customer’s house or business, such as poles, wires, and transformers.

Kilowatts are the units of measurement for demand charge (kW). This is a capacity measurement, or the rate at which energy is consumed. During a billing cycle, demand indicates the most energy utilized in 15-minute periods. High demand is typically connected with machine startup, which necessitates a greater amount of energy than everyday operations.

Watts are used to measure electricity, much as gallons are used to measure gasoline. A kilowatt-hour (kWh) is a measurement of the rate of electrical energy consumed multiplied by the length of time it is utilized 1,000 watts used continuously for one hour. The average Pacific Power client consumes 948 kWh per month, or 11,376 kWh year.

This fee covers a portion of the cost of providing power. Customers are charged based on how many kilowatt-hours (kWh) they use. The Company employs a two-tiered, or “Blocks,” pricing structure that encourages users to conserve energy, resulting in lower energy costs. Block 1 refers to usage between 0 and 1,000 kWh, while Block 2 refers to usage exceeding 1000 kWh. Block 1 is more affordable than Block 2.

This state-mandated fee is used to fund cost-effective energy conservation measures that are part of the Oregon Renewable Energy Act.

This state-mandated fee pays for the removal of the JC Boyle, Copco, and Iron Gate dams, as outlined in the Klamath Hydroelectric Settlement Agreement, which was signed on February 18, 2010. The funds have been placed in a trust managed by the Oregon Public Utility Commission.

This state-mandated fee gathers monies and distributes them to a state agency that assists low-income households with energy costs.

This penalty reflects the difference between the power costs established in the Company’s annual transition adjustment mechanism (TAM) filing and the actual power expenditures incurred the previous year.

Equipment that demands more current from the electrical system than typical causes power factor (or reactive power), which is measured in kilovolt-amperes (kvar). Customers can lower their bills by shutting off unwanted motors and other equipment, as well as adding capacitors.

A state-mandated fee that covers energy efficiency services and initiatives that are provided to customers to assist them reduce their energy consumption.

The tariff category for your service address is determined. The rate you’ll be charged is determined by this.

Customers are charged at a higher rate during peak months and hours of the day to reflect the increased energy expenses. Rates of Time of Use can be found here.

What is the Winter Block 1 energy charge?

This fixed monthly payment covers some of the fixed costs of having electric service, expenditures that the firm incurs regardless of how much electricity is utilized (i.e. cost of meters, meter reading, billing, record-keeping, etc.).

This fee is collected on the city’s behalf. The city receives all of the taxes and puts them to good use.

This raises funding for demand-side management initiatives, which assist customers reduce their energy consumption. Programs for electric vehicles, clean coal research, solar energy, and innovative technology to reduce emissions and enhance air quality are also supported by funds from the Sustainable Transportation and Energy Plan.

The EBA is a credit or debit price adjustment that accounts for the difference between real power costs and the level of power costs indicated in customer rates. The variable expenses of providing clients with energy, such as fuel and the cost of purchasing electricity from other producers, are referred to as power costs. The Company’s electricity expenditures are offset by wholesale sales to other utilities and entities that buy wholesale power.

Watts are used to measure electricity, much as gallons are used to measure gasoline. A kilowatt-hour (kWh) is a measurement of the rate of electrical energy consumed multiplied by the length of time it is utilized 1,000 watts used continuously for one hour. Rocky Mountain Power customers consume about 709 kWh per month, or 8,508 kWh per year on average.

This price reflects the costs of distributing and producing power that are not recovered through the basic charge (Block 1, Block 2, Block 3). Customers are charged according to how many kilowatt-hours (kWh) they use. During the winter months (October to April), usage of 0-400 kWh is charged at the lowest rate (Block 1), and every further kWh usage over 400 is charged at the higher rate (Block 2). (Block 2). During the summer (May to September), usage of 0-400 kWh is charged at the lowest rate (Block 1), 401-1000 kWh is paid at a higher rate (Block 2), and all kWh usage above 1000 is charged at the highest rate (Block 3). (Block 3). Both the two-tiered winter rate and the three-tiered summer rate pricing systems are intended to encourage customers to conserve energy, lowering energy expenditures.

The Low-Income Residential Lifeline Program in Utah receives cash from this state-mandated levy.

Renewable Energy Certificates (REC) are a type of environmental certificate that can be used to transfer, trade, sell, or buy environmental advantages linked with renewable energy. Rocky Mountain Power sells a percentage of the renewable energy certificates it creates each year. The proceeds from sales are applied to the cost of supplying energy. Year to year, the market value and number of RECs sold fluctuate. Based on the actual REC income received, the Renewable Energy Adjustment on client statements can be either a credit or a negative.

Customers are charged at a higher rate during peak months and hours of the day to reflect the increased energy expenses.

Rocky Mountain Power is obligated to collect sales tax for the Utah State Tax Commission in order to do business in Utah.

What is a supply energy charge block, and what does it do?

Energy charges, which are both contractually fixed and market-based; system peak charges, which include both capacity and transmission fees; and a variety of ancillary fees and taxes make up the provider bill. This is the portion of the bill that pertains to the energy that the client purchased directly.

Supplier Energy Charges Block

This customer acquired a power block for about 5% of its total energy consumption. It has a “ATC (Around-The-Clock) Block” of consumption that can be purchased at a low fixed rate and a “On-peak Block” that can be acquired at a higher fixed rate during peak periods. This block establishes a guaranteed fixed rate at which the customer will be charged for the energy utilized under the contract.

This customer purchased a tiny block of 5% of its load to protect itself against rising prices. While the percentage of total load locked in by block and index contracts varies per client, most customers lock in a higher percentage of total load with blocks. You decide how much of your predicted consumption is fixed and how much is flexible. The $/kWh price at which the block is billed is based on a negotiated rate with the supplier, but it is influenced by the customer’s load profile as well as pricing expectations and volatility over the contract’s term. Flattening your load factor will provide you more bargaining power with the supplier. Additionally, you can use a competitive bidding procedure to verify that you get the best price and terms.

Once the fixed energy block purchase has been used up, this customer’s remaining use is subject to hourly fluctuating market electricity rates. Because this customer is in PJM, the Locational Marginal Price is used to set the rates (LMP). The hour-by-hour usage in excess of the block purchase is charged at that rate ($/kWh, fluctuating by hour). The variable rate is simply for the energy for this customer, unlike the block purchase, and the system peak and ancillary charges are payable separately.

While you can’t influence the LMP price, you can limit your use by making capital expenditures in energy-efficient equipment or Energy Efficiency Measures (EEMs), as well as other operational improvements like consistent night, weekend, and holiday shutdowns. You can also choose how much of your usage is contracted at a fixed cost and how much is contracted at a flexible rate. Managing the amount of consumption that is left floating allows you to take advantage of market volatility by purchasing lower-cost blocks when the market permits and averaging down your fixed-rate block cost.

In order to sell to end customers, the supplier must first obtain generation and transmission capacity. Capacity charges (UCAP) and transmission charges are how end customers pay for the supplier’s commitment (TransCAP). System peak rates are based on a customer’s capacity tag (capacity Peak Load Contribution or PLC) and transmission tag throughout the year, as they are for other PJM customers (transmission PLC). PLCs are determined for each electricity user based on their average electricity demand (kw) during the overall grid system’s peak demand hour on the five busiest summer days (June 1st to September 30th). Only deregulated regions have system peak charges, however other regions have their own rules for determining system peak charges. New England’s system peak rates, for example, are based on the single highest hour per year, while ERCOT in Texas charges are based on what it refers to as the “4 Critical Peaks” (4CP).

So, how does a supplier bill the client for PJM’s charge? The supplier estimates the customer’s charges and invoices for the fraction of the supplier’s total UCAP and TransCAP fee that the customer is expected to pay PJM, and this is reflected on the utility bill.

Suppliers aren’t in it for the money. They charge a Supply Service Fee to cover their cost of serving, which includes things like operating costs, invoicing charges, and credit risk, as well as a profit margin. Pass-through charges such as line losses and ancillaries may be included in the supplier fee in some situations.

As part of the supplier selection process, the first step is to check that the costs you are paid are transparent. Second, as part of the competitive RFP process, those fees can and should be negotiated.

To avoid blackouts, PJM and other grid operators must always match supply with demand. Grid reliability and maintaining supply and demand balance across the transmission system are covered by ancillary charges. Operating reserves, spinning reserves, regulation, black start, and frequency reserves are examples of supplementary services. The charges for this hypothetical customer are around 2% of the total spend.

Customers usually don’t pay attention to ancillary costs because they have no control over the rates imposed. Because ancillary charges are usually calculated based on use, energy efficiency measures that lower total consumption will also help minimize ancillary charges. Customers with more complex block and index contracts and bigger loads can also work with suppliers to plan additional power in the Day-ahead market, which has reduced operational reserve charges.

What are the different types of blocks on a PNM bill?

Understanding your bill is a good place to start when looking for methods to conserve energy and money. Knowing what’s on your account can give you with actionable information, therefore it’s worth knowing what’s on there to find methods to save.

Meter Read

If this box says “Actual,” your meter reading was taken in person by a meter reader. If “Estimated” appears in this box, it means that a meter reader was unable to read your meter. Weather and access obstacles, such as locked gates, dogs, or shrubbery, are common causes of an approximated reading. PNM is only allowed to estimate your bill for two months in a row under New Mexico Public Regulation Commission standards.

Electricity You Used

This section includes the total energy utilized for the billing period in kilowatt-hours (kWh), as well as the current and previous month’s meter readings.

PNM bills electricity in 450-kilowatt-hour (kWh) blocks. With each successive block, the price of electricity rises. The lower the average price you spend for power, the fewer blocks you see on your account. On average, the more blocks you see, the more you pay. Regularly monitoring this section will show you whether there are certain seasons of the year – such as during the summer – when you should be trying more to conserve in order to better manage your spending.

Fuel Cost Adjustment

Similarly to gas prices, utility fuel costs can vary significantly. The bill’s Fuel Cost Adjustment includes 100 percent of the cost of traditional resources’ fuel. This part does not include any costs associated with customer-owned solar.

-Non-Renewable: This category includes the cost of fuel used to generate energy from non-renewable sources.

-Renewable: Because solar, wind, and geothermal energy do not require fuel, this line is now zero dollars. The Renewable Enegy Rider, #9, recovers the costs of maintaining these installations.

Renewable Energy Rider

PNM generates enough wind, solar, and geothermal energy to power 145,000 PNM residential dwellings, or more than a quarter of the company’s consumers. This fee helps to fund our efforts to develop these resources as well as our commitment to a cleaner environment.

What is the best way to read my Pacific Power bill?

You can locate your bill guide here if you’re a Portland General Electric customer. Keep an eye out on the CUB Blog for advice on Oregon’s other major energy utilities.

How to View Your Pacific Power Bill

Many clients of Pacific Power receive paper bills in the mail. If you’re one of these people, getting a hold of your bill is as simple as opening an envelope.

If you receive your bill electronically, you can access it by going to https://www.pacificpower.net/ and signing into your Pacific Power account. After you’ve logged in, go to “To see your most recent bill, go to “Pay My Bill.” Select Past Bills for a list of previous bills “Instead, choose “Billing and Payment History.” You will be able to examine your bill online even if you receive it in the mail.

Anatomy of a Pacific Power Bill

The first section of your bill lists previous month’s charges as well as new charges. Many clients simply want to know how much their monthly cost will be.

What is PGE Tier 2 usage?

Your Baseline Allowance is the first and most affordable tier. It is made up of an energy allocation based on your location, your heating source, and the seasonsummer or winter. Summer lasts from June 1 to September 30 and winter lasts from October 1 to May 31.

  • Tier 2 energy is utilized in excess of the Baseline Allowance and is invoiced at a higher rate.
  • A High Usage Surcharge will be levied if your energy consumption exceeds four times the Baseline Allowance during your monthly billing cycle.

What is covered by Rocky Mountain Power?

Rocky Mountain Power provides communities in Utah, Wyoming, and Idaho with reliable, safe, and ecologically responsible energy.

What is the best way for me to pay my PNM bill?

Choose a payment option that is convenient for you. If none of these ways suit you, take a look at our entire list of payment choices. You’ll undoubtedly locate one that suits your needs.

What’s the difference between PGE Tiers 1 and 2?

The electric and natural gas rates that PG&E charges its 5.4 million or so customers are how we make money. The money is used to fund a variety of company operations that reflect the state’s energy policies. It also covers the costs of the different programs and services we provide.

The electric tariff includes revenue for electric distribution and transmission as well as procurement costs. The natural gas tariff comprises funds for natural gas purchases as well as infrastructure costs such as pipes. Electric and natural gas pricing both include funds for government programs such as low-income housing and energy efficiency. Our rates also include an agreed-upon rate of return for shareholder investments in customer-facing infrastructure.

Regulatory oversight

To limit the amount of rate changes faced by our electric customers, PG&E combines permitted modifications to its electric rates only two or three times a year. The California Public Utilities Commission requires us to adjust our natural gas delivery pricing every month (CPUC). The CPUC is a five-member body appointed by the Governor to ensure that monthly gas market costs are more competitive.

When PG&E needs to adjust its rates, we file a request with the CPUC. The application outlines the update or new program or service that is necessary, as well as the annual or multi-year expenses and impact on rates. Stakeholders such as groups representing residential and commercial consumers, low-income and community advocates, environmental groups, agricultural interests, and others examine our application at a public hearing. The CPUC then makes a decision based on what is equitable and reasonable for customers to pay in rates after this procedure. The authorized revisions are subsequently incorporated into PG&E’s rates.

Every three years, PG&E files a request with the CPUC to have revenues received for certain electric generating and distribution, as well as natural gas distribution operating expenditures, reviewed and authorized. For electric, this is known as the General Rate Case (GRC). Under the Gas Transmission and Storage Rate Case, we file every four years for the recovery of natural gas transmission and storage operations (GT&S).

In addition to the CPUC, the Federal Energy Regulatory Commission (FERC) regulates the retail transmission element of PG&E’s electric bundled rates, which accounts for about 14% of the total. The remaining 86 percent goes to rates and charges, which are used to recoup the CPUC’s costs.

Residential rates

To encourage energy saving, PG&E’s regular home electric and natural gas rates are tiered (where the price of energy rises as more energy is utilized over a billing cycle), as mandated by California law. With tiered rates, the cost rises as more energy is consumed. As a result of the reduced prices in the lower levels, clients who use less energy have cheaper bills. In the higher use levels, customers who use more energy are billed at a higher rate.

PG&E offers discounted prices for eligible customers engaged in our low-income assistance program, California Alternate Rates for Energy, in addition to conventional tiered rates (CARE). Families that are not qualified for CARE can take advantage of the Family Electric Rate Assistance (FERA) program.

The majority of PG&E’s home electric rate plans are tiered, with the cheapest plan offering a monthly base amount of electric usage. The Baseline Quantity is a monthly basis amount that varies by geographic region and Climate Zone. Tier 1 comprises the baseline quantity, while Tier 2 goes from 101 percent to 400 percent of the baseline quantity for residential tiered rates. For that billing month, any usage above 400 percent of baseline is subject to the High Usage Surcharge.

Residential customers can also get electric Time-of-Use prices from PG&E. Some of these rates are divided into tiers, while others are not. Time-of-Use rates charge cheaper pricing during off-peak energy periods, allowing consumers to potentially lower their bills by shifting some of their usage away from the more expensive peak periods. PG&E can lower its energy costs by reducing electric usage during peak hours. There are tiers in some Time-of-Use pricing.

More about Climate Zones and Baseline Allowance

While tariffs are consistent throughout PG&E’s service region, the amount of electricity allotted at the lowest available price (baseline) varies by customer. This varies depending on where you live, the season (summer or winter), and how you heat your home. The baseline quantity is the minimum level of usage required to meet a significant portion of the average customer’s power needs in a specified geographic region known as a Climate Zone. PG&E’s service area is divided into ten Climate Zones. These zones are based on locations with comparable terrain and climate, rather than county or city boundaries. Customers in warmer Climate Zones have higher baseline quantities than those in cooler Climate Zones.