ELECTRICITY COSTS



Electricity costs vary from State to State and within states.


Electricity costs around the U.S. can vary by a factor of 10
depending on the State, location within the State and by local
Electric Distribution Companies (EDCs). Electricity rates can be
low if the facility is close to a hydro electric plant. Electricity
rates can be very high when served by nuclear plants or oil and regionally in the northeastern states, California, Hawaii and the
US Virgin Islands.


In many areas, electricity costs have increased following
deregulation due the State PUCs granting power companies the
right to recover "stranded investments" from their rate payers
(often called Transition Costs on the deregulated electricity bills.). Many clients report their electricity costs increase by
10% to 15% following their State's deregulation of electricity
markets

  

Some electric utilities design their rates based on electrical
demand peak (KW or KVA) ... plus KWH consumption. Others
tie their rate design to their true electricity generation cost
(market rates) and vary the KWH and KW cost based on the
time-of-day and day of the week.

  

Some EDCs have also added new fees for services traditionally
included in the rate such as "line extension" fees for new
electricity services.
  

In other cases there are new government required fees and
taxes added to electricity bills. Some states also have 'KWH taxes'
to fund state demand-side management (DSM) programs also
known as public benefit funds.





AVERAGE COST PER KWH (in cents)
Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, '0ctober 2006'
(Cents per Kilowatthour)
All Sectors
Census Division
and State
Oct-06
New England 14.12
Connecticut 14.79
Maine 12.15
Massachusetts 14.62
New Hampshire 13.53
Rhode Island 13.75
Vermont 11.48
Middle Atlantic 11.43
New Jersey 11.37
New York 14.33
Pennsylvania 8.48
East North Central 7.5
Illinois 7.19
Indiana 6.45
Michigan 8.24
Ohio 7.68
Wisconsin 8.09
West North Central 6.39
Iowa 6.71
Kansas 6.77
Minnesota 6.81
Missouri 5.83
Nebraska 5.83
North Dakota 6.21
South Dakota 6.81
South Atlantic 8.56
Delaware 10.21
District of Columbia 11.35
Florida 10.5
Georgia 7.58
Maryland 10.78
North Carolina 7.68
South Carolina 7.09
Virginia 6.78
West Virginia 5.08
East South Central 6.54
Alabama 6.64
Kentucky 5.37
Mississippi 7.55
Tennessee 7.02
West South Central 9.41
Arkansas 6.93
Louisiana 9.1
Oklahoma 7.13
Texas 10.16
Mountain 7.61
Arizona 8.64
Colorado 7.52
Idaho 4.66
Montana 7.32
Nevada 9.59
New Mexico 7.66
Utah 6.06
Wyoming 5.49
Pacific Contiguous 10.45
California 12.15
Oregon 6.71
Washington 6.51
Pacific Noncontiguous 17.78
Alaska 12.66
Hawaii 20.55
U.S. Total

8.83

Source: · Energy Information Administration, Form EIA-826 ,
"Monthly Electric Utility Sales and Revenue Report with State Distributions."

NOTES

1: Electricity costs have increased since the October 2006 version
of the EIA-826 report was released. Next EIA 826 report will be
released in October 2007.

2. Electricity cost have increased :
- Chicago Il : with end of frozen commercial electricity rates
from increased 57% from $0.07 to $0.11/ kwh effective 1/1/07
- Baltimore MD: with the end of frozen residential electricity rates
increased 72% effective 7/1/06

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How to ready your electricity meter



BASIC ELECTRICITY BILLING TERMS

Kilowatthour (kWh) : CONSUMPTION , A measure of electricity defined as a unit of
work or energy, measured as 1 kilowatt (1,000 watts) of power expended for 1 hour.
One kWh is equivalent to 3,412 Btu.

Kilowatt (kW) : PEAK DEMAND , One thousand watts. Also called KWD or KW demand
by some utility companies

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Kilovolt-Ampere (kVa): A unit of apparent power, equal to 1,000 volt-amperes;
the mathematical product of the volts and amperes in an electrical circuit.

Power Factor (PF) : Relationship between KW demand (real power) and
KVA (apparent power) PF = KW / KVA = ___%

On-Peak: KWHs or KW period of time in tariff and measured by meter when power
is more expensive.

Off-Peak : KWHs or KW of time in tariff and measured by the meter when power
is less expensive

T.O.U. : Time of Use. KWHs are billed at different rates during the day

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UTILITY RATIOS (used by utility companies but not part of utility bills)

Hours use = KWHs / KW

Load Factor

L.F. (percent) = [(Total kWh) / (# Days in Bill Cycle x 24 hrs/day)] / [Peak kW Demand]



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ELECTRICAL LOAD : AMPS TO KW CONVERSION

TO

SINGLE PHASE
AMPS x VOLTS x POWER FACTOR / 1,000 = KW

THREE PHASE:
AMPS x VOLTS x POWER FACTOR x 1.73* / 1,000 = KW

* 1.73 is the square root of 3