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Bill Payment Options : Definitions of Terms on Your Bill
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Understanding Your Bill

Customer charge: A charge for electric service that covers a portion of the costs for electric meters, meter reading and billing.

Demand: The rate at which electric energy is delivered to or used by a customer expressed in kilowatts at a given instant or averaged over a designated period of time, usually 15 minutes.

Demand charge: A charge for electric service provided designed to recover the capacity (kW) costs of the wholesale electric supplier .

Demand rate: A method of charging for electricity where the rate of electric usage (kW) during the billing period is considered in determining a portion of the customerís bill.

Distribution demand: Highest demand over the current month or preceding 11 months.

Distribution demand charge: Designed to recover costs of infrastructure needed to deliver electricity from wholesale delivery point to customerís service entrance.

Energy: Generally refers to kilowatt-hours.

Energy charge: The portion of the electric service based on electric energy (kWh) consumed

Flat rate: The price charged per kWh is constant, does not change based on time of day.

Kilowatt: Measure of electric power equal to 1,000 watts. One kilowatt (kW) equals 1.34 horsepower.

Kilowatt-hour: Basic unit for measuring electric energy. Equal to one kilowatt of power supplied or consumed for one hour.

Late payment charge: Charge that covers administrative and carrying costs of late payments.

Off-Peak period: Periods of relatively low system demand.

On-Peak period: Periods of relatively high system demand.

Power Cost Adjustment Clause (PCAC): Charge per kWh that varies monthly. Designed to make wholesale power costs a pass-through cost to customer. Equivalent to the amount current per-unit cost of wholesale power is greater or less than base per-unit cost of power.

Single-phase service: Service where the facility has two energized wires coming into it. Typically serves 120/240 volt services and requires simpler infrastructure to support. Is less expensive to install and maintain.

Three-phase service: Service where the facility has three energized wires coming into it. Requires more sophisticated equipment and tends to be more expensive to install and maintain.

Time-of-use rate: Prices for electricity that vary depending on what time of day the customer uses electricity. Designed to reflect the different cost the utility incurs to provide electricity during on-peak and off-peak periods.

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