Electric distribution is the movement of electricity from the interconnection with the transmission system through the end-use consumer's meter. If transmission is considered the highway on which electricity travels long distances, the distribution system can be considered the streets and avenues that connect end-use customers to it. Generally, distribution refers to electric systems with voltages lower than 60 kV (although some utilities define distribution as lower than 40 kV). Distribution systems are often divided into primary systems (higher voltages) and secondary systems (lower voltages). Ultimately, the voltage at which electricity is delivered to an end-use consumer must be transformed to the voltage used by the consumer's electrical devices, which for smaller customers is the common 120 V we are used to seeing in our homes and offices. All distribution lines in the United States distribute AC power.
Types of Distribution Systems:
Radial Feed
A radial feed is simply a single line from a transformer out to a number of customers. While the lowest cost of the options, radial feeds do suffer from the fact that loss of cable, primary supply or the transformer will result in loss of service to all customers on that feed. Also, radial circuits must be de-energized to perform routine maintenance and services.
Loop Feed
A loop feed serves customers off a loop that is connected to the primary feed at two ends. This costs more than a radial system since duplicative equipment is required, but does provide the capability of isolating faults within the loop and continuing to feed all customers except those on the section with the fault. The reliability of both radial feeds and loop feeds can be enhanced by adding primary distribution feed to the circuit.
Network System:
A network system connects multiple primary feeds and interconnects multiple distribution circuits in the form of a grid. While network systems provide the highest form of reliability since customers can be served in multiple ways, they are also expensive because of the costs of duplicative equipment, transformers and specialized network protective equipment. Networks are generally used in downtown urban areas with highly dense critical loads.
The Meter
The last key component of the distribution system is the meter located at each customer location. Without the meter, customers cannot be billed and energy companies cannot be paid. Metering is currently undergoing significant transition. Until the last 15 years, almost all meters were read once a month by a meter reader who recorded usage at each customer location. Meter data as generally limited to KWh used and for larger customers maximum kW. Since then we have become accustomed to increasingly sophisticated meters at reduced costs. Now many utilities depend on meters that can be read remotely and make meter data available on a real-time basis. Higher-end meters can be used to record large amounts of useful data including energy usage by time period, demand by time period and various measures of power quality. In the near future, the electric meter may evolve into a services gateway that will allow two-way communication between energy providers and consumers, opening up new ways for energy companies to maximize the efficiency of supply and customers to participate in energy markets.
Thursday, May 26, 2011
Thursday, May 19, 2011
Transmission
Electric transmission is the movement of large amounts of electricity over long distances. In this process electricity is moved from a central generating unit to an interconnection with an electrical distribution system, or in some cases, directly to industrial customers. The transmission system is the electrical highway that connects supply to demand across a network called an electric grid. Different entities define the facilities that comprise the transmission system somewhat differently, but transmission generally refers to any electric line with voltage greater than 60 kV (some entities use 40 kV as the break, some 115 kV). Typical transmission voltages include 69, 115, 128, 230, 345, 500, and 765 kV. Transmission lines can be designed to transmit either AC (alternating current) power or DC (direct current) power, but not both. Most lines in the U.S. are AC.
The Transmission System
Generation: Generator
Transmission: Station transformer and switchyard - Transmission substation
Distribution: Distribution substation
North American Power Grids
Western Interconnect
Eastern Interconnect
Texas Interconnect
Quebec Interconnect
Ownership of Transmission
Until the advent of electric restructuring in the U.S., transmission lines were owned by vertically-integrated utilities or by federal generation agencies. As restructured electric markets have evolved, some utilities have concluded that it no longer makes sens to own transmission lines, and have sold theirs to transmission companies (also referred to as transcos). A transco is a stand-alone owner and operator of transmission facilities. Many industry observers believe that over time we will evolve to a market structure where transmission ownership and operation is dominated by transcos. This is similar in structure to the current U.S. interstate natural gas transmission system, where investor-owned companies own and operate interstate pipelines as a stand-alone business.
The Transmission System
Generation: Generator
Transmission: Station transformer and switchyard - Transmission substation
Distribution: Distribution substation
North American Power Grids
Western Interconnect
Eastern Interconnect
Texas Interconnect
Quebec Interconnect
Ownership of Transmission
Until the advent of electric restructuring in the U.S., transmission lines were owned by vertically-integrated utilities or by federal generation agencies. As restructured electric markets have evolved, some utilities have concluded that it no longer makes sens to own transmission lines, and have sold theirs to transmission companies (also referred to as transcos). A transco is a stand-alone owner and operator of transmission facilities. Many industry observers believe that over time we will evolve to a market structure where transmission ownership and operation is dominated by transcos. This is similar in structure to the current U.S. interstate natural gas transmission system, where investor-owned companies own and operate interstate pipelines as a stand-alone business.
Thursday, May 12, 2011
Types of Generation
U.S. Generation Output by Type:
Coal 50%
Natural Gas 19%
Nuclear 19%
Hydro 7%
Fuel Oil 3%
Renewables 2%
(Increases may have occurred since data report)
As you know, utilities or generating companies try to match generation types with the aggregate needs of their customers. To understand how this is done, it is important to first understand that each generation type has different operating, financial and environmental characteristics. Key characteristics include capital costs, variable costs, operational flexibility, environmental impacts, fuel availability, and restraints on locations where units can be constructed. Following is a discussion of each generation type and an assessment of the key characteristics outlined above.
Coal:
The ready availability of low-cost coal has historically made coal-fired generation a favorite of many U.S. utilities. Most coal-fired generation employs steam turbine technology where coal is burned to hear water in boiler tubes. The water becomes steam and is run through a steam turbine that drives a generator shaft to create electricity. Because of economies of scale, most coal units are fairly large in the range of 250 to 1500 MW. The capital costs associated with building coal units are generally high compared with gas units, but many existing units have been on-line for a number of years and thus have been significantly depreciated. Operations and maintenance (O&M) costs are relatively low depending on the age of the unit. Fuel costs have tended to be among the lowest of generation sources in the U.S. Due to technological constraints, coal units do not have good operational flexibility as they generally require several hours to go from cold status to full operation. Because burning coal can be responsible for considerable emissions, coal units are generally considered to have a higher environmental impact than other sources of generation. For this reason and because of high transportation costs, there are areas of the country that do not use coal to generate electricity.
By 2005, high natural gas prices led some utilities and merchant generators to reconsider the value of coal units. A large number of new coal units are currently proposed and their sponsors are moving forward with obtaining permits and other regulatory approvals. While fuel availability and low price are currently attractive, future emissions mitigation costs are unknown since the U.S. has yet to develop regulation for carbon emissions (in the works now). Some companies are turning to development of clean coal technologies such as Integrated Gas Combined Cycle (IGCC) units, while others are choosing to use traditional technologies in the face of uncertainty.
Nuclear:
A number of nuclear units were brought on-line in the United States in the 1970s and 1980s. These units are generally large and range in size from 600 to over 1200 MW. Nuclear generation uses the heat of nuclear fission to create steam that is then run through a steam turbine. Capital costs associated with new nuclear units are very high, but as the units age and are depreciated their book values have declined. Variable costs including fuel are generally low, but fixed maintenance costs are higher due to the extreme safety procedures required as well as the need to collect costs for future decommissioning. Because of the technology employed; nuclear units do not have good operational flexibility, and start-up times are usually measured in days. Because of this inflexibility, nuclear units are used for baseload needs. New development of nuclear generation in the U.S. has been hampered by two key issues-the lack of waste disposal site for spent fuel and public concerns over the risks of a major nuclear accident or terrorist attack. In fact, no new units have been brought on-line in the U.S. since 1996 (although new nuclear units have continued to be built in other countries). As of late 2006, a few companies had begun the licensing process for new nuclear units in the U.S., but any construction appears to be many years away at the earliest. Despite the perceived safety issues, nuclear generation is favorable form the standpoint of emissions-no greenhouse gasses or pollutants such as NOx, SO2, or Mercury are emitted from nuclear generation.
Natural Gas:
As we have seen, very high percentage of new generation built in recent years in the U.S. has been natural gas generation. There is also a large base of older gas-fired steam turbine units in the U.S. generation portfolio. Gas-fired generation makes use of three primary technologies-combustion turbines that use natural gas directly to fire a turbine which drives the generator shaft; steam turbine that burn natural gas to create steam in a boiler which is then run through a steam turbine; and combined-cycle units that utilize a combustion turbine(fired by natural gas) and then steam turbine (wherein waste heat from the combustion turbine is used to produce steam which is the run through the steam turbine). Utility-owned natural gas units vary significantly in size, ranging from as small as 1 MW to over 500 MW. Natural gas is also used to fuel on-site cogeneration units and backup generators for many buildings. Capital costs associated with natural gas units are considerably lower than other generation sources. O&M costs are also generally low. Fuel costs vary depending on the market value of natural gas. As you might imagine, a major concern among owners of natural gas generation are the recent fluctuations in natural gas prices and the apparent tightness of U.S. natural gas supply. Depending on technology, natural gas units can be very flexible operationally. Combustion turbines, often called peaking turbines, can be started and stopped within minutes. Steam turbines may require up to six hours to go from cold status to full power. Although gas units do have some air quality impacts, they are generally less harmful than other carbon fuels (coal or fuel oil) and thus considered favorable from an environmental standpoint. For this and other reasons (units can be smaller, easy access to fuel supply, etc.) gas units also have the advantage that they can be located closer to major loads, and thus require less transmission.
Hydro:
Hydro power is the backbone of many electric generation systems across the United States where significant hydro resources are available (notably the West and parts of the Southeast). Hydro power is created by running water from a reservoir through as hydraulic turbine that spins and drives a generator shaft. Because the power output can be controlled by simply adjusting the water flow, hydro units are generally very flexible. Hydro units range from very small (100 kW) to very large (over 500 MW) with many units in the 100 MW range. Most hydro units were built a number of years ago (with some units dating back to the 1920s), so capital costs have generally been depreciated. O&M costs are generally low and, of course, there is no fuel cost once water rights are acquired. Given their operational flexibility, hydro units are very useful for managing peal loads and for power regulation purposes (keeping supply and demand in balance minute-by-minute) as well as for restoring the grid after a blackout. Although a new hydro dam would now be considered to have large environmental impacts, existing units are generally considered environmentally favorable, with the exception of concerns over impacts on fish populations and downstream activities. A related technology is pumped hydro storage which uses off-peak power to pump water uphill into a reservoir, thus making it available for generation during peak hours. This process is used by utilities as one of the few forms of electricity storage available to them.
Fuel Oil:
A limited number of utilities make use of fuel oil generation as an alternative to natural gas. Fuel oil generation is typically seen in regions where natural gas supply is limited or where utilities have the capability of fuel-switching units based on the relative price of fuel oil compared to natural gas. The technology used in fuel oil generation is similar t natural gas with a few changes to account for physical characteristics of the different fuel. Thus operational characteristics of fuel oil units are similar to natural gas units. The major drawback to fuel oil units is that they have more environmental impacts than their natural gas counterparts. In fact, some areas of the country do not permit fuel oil generation due to air quality concerns.
Coal 50%
Natural Gas 19%
Nuclear 19%
Hydro 7%
Fuel Oil 3%
Renewables 2%
(Increases may have occurred since data report)
As you know, utilities or generating companies try to match generation types with the aggregate needs of their customers. To understand how this is done, it is important to first understand that each generation type has different operating, financial and environmental characteristics. Key characteristics include capital costs, variable costs, operational flexibility, environmental impacts, fuel availability, and restraints on locations where units can be constructed. Following is a discussion of each generation type and an assessment of the key characteristics outlined above.
Coal:
The ready availability of low-cost coal has historically made coal-fired generation a favorite of many U.S. utilities. Most coal-fired generation employs steam turbine technology where coal is burned to hear water in boiler tubes. The water becomes steam and is run through a steam turbine that drives a generator shaft to create electricity. Because of economies of scale, most coal units are fairly large in the range of 250 to 1500 MW. The capital costs associated with building coal units are generally high compared with gas units, but many existing units have been on-line for a number of years and thus have been significantly depreciated. Operations and maintenance (O&M) costs are relatively low depending on the age of the unit. Fuel costs have tended to be among the lowest of generation sources in the U.S. Due to technological constraints, coal units do not have good operational flexibility as they generally require several hours to go from cold status to full operation. Because burning coal can be responsible for considerable emissions, coal units are generally considered to have a higher environmental impact than other sources of generation. For this reason and because of high transportation costs, there are areas of the country that do not use coal to generate electricity.
By 2005, high natural gas prices led some utilities and merchant generators to reconsider the value of coal units. A large number of new coal units are currently proposed and their sponsors are moving forward with obtaining permits and other regulatory approvals. While fuel availability and low price are currently attractive, future emissions mitigation costs are unknown since the U.S. has yet to develop regulation for carbon emissions (in the works now). Some companies are turning to development of clean coal technologies such as Integrated Gas Combined Cycle (IGCC) units, while others are choosing to use traditional technologies in the face of uncertainty.
Nuclear:
A number of nuclear units were brought on-line in the United States in the 1970s and 1980s. These units are generally large and range in size from 600 to over 1200 MW. Nuclear generation uses the heat of nuclear fission to create steam that is then run through a steam turbine. Capital costs associated with new nuclear units are very high, but as the units age and are depreciated their book values have declined. Variable costs including fuel are generally low, but fixed maintenance costs are higher due to the extreme safety procedures required as well as the need to collect costs for future decommissioning. Because of the technology employed; nuclear units do not have good operational flexibility, and start-up times are usually measured in days. Because of this inflexibility, nuclear units are used for baseload needs. New development of nuclear generation in the U.S. has been hampered by two key issues-the lack of waste disposal site for spent fuel and public concerns over the risks of a major nuclear accident or terrorist attack. In fact, no new units have been brought on-line in the U.S. since 1996 (although new nuclear units have continued to be built in other countries). As of late 2006, a few companies had begun the licensing process for new nuclear units in the U.S., but any construction appears to be many years away at the earliest. Despite the perceived safety issues, nuclear generation is favorable form the standpoint of emissions-no greenhouse gasses or pollutants such as NOx, SO2, or Mercury are emitted from nuclear generation.
Natural Gas:
As we have seen, very high percentage of new generation built in recent years in the U.S. has been natural gas generation. There is also a large base of older gas-fired steam turbine units in the U.S. generation portfolio. Gas-fired generation makes use of three primary technologies-combustion turbines that use natural gas directly to fire a turbine which drives the generator shaft; steam turbine that burn natural gas to create steam in a boiler which is then run through a steam turbine; and combined-cycle units that utilize a combustion turbine(fired by natural gas) and then steam turbine (wherein waste heat from the combustion turbine is used to produce steam which is the run through the steam turbine). Utility-owned natural gas units vary significantly in size, ranging from as small as 1 MW to over 500 MW. Natural gas is also used to fuel on-site cogeneration units and backup generators for many buildings. Capital costs associated with natural gas units are considerably lower than other generation sources. O&M costs are also generally low. Fuel costs vary depending on the market value of natural gas. As you might imagine, a major concern among owners of natural gas generation are the recent fluctuations in natural gas prices and the apparent tightness of U.S. natural gas supply. Depending on technology, natural gas units can be very flexible operationally. Combustion turbines, often called peaking turbines, can be started and stopped within minutes. Steam turbines may require up to six hours to go from cold status to full power. Although gas units do have some air quality impacts, they are generally less harmful than other carbon fuels (coal or fuel oil) and thus considered favorable from an environmental standpoint. For this and other reasons (units can be smaller, easy access to fuel supply, etc.) gas units also have the advantage that they can be located closer to major loads, and thus require less transmission.
Hydro:
Hydro power is the backbone of many electric generation systems across the United States where significant hydro resources are available (notably the West and parts of the Southeast). Hydro power is created by running water from a reservoir through as hydraulic turbine that spins and drives a generator shaft. Because the power output can be controlled by simply adjusting the water flow, hydro units are generally very flexible. Hydro units range from very small (100 kW) to very large (over 500 MW) with many units in the 100 MW range. Most hydro units were built a number of years ago (with some units dating back to the 1920s), so capital costs have generally been depreciated. O&M costs are generally low and, of course, there is no fuel cost once water rights are acquired. Given their operational flexibility, hydro units are very useful for managing peal loads and for power regulation purposes (keeping supply and demand in balance minute-by-minute) as well as for restoring the grid after a blackout. Although a new hydro dam would now be considered to have large environmental impacts, existing units are generally considered environmentally favorable, with the exception of concerns over impacts on fish populations and downstream activities. A related technology is pumped hydro storage which uses off-peak power to pump water uphill into a reservoir, thus making it available for generation during peak hours. This process is used by utilities as one of the few forms of electricity storage available to them.
Fuel Oil:
A limited number of utilities make use of fuel oil generation as an alternative to natural gas. Fuel oil generation is typically seen in regions where natural gas supply is limited or where utilities have the capability of fuel-switching units based on the relative price of fuel oil compared to natural gas. The technology used in fuel oil generation is similar t natural gas with a few changes to account for physical characteristics of the different fuel. Thus operational characteristics of fuel oil units are similar to natural gas units. The major drawback to fuel oil units is that they have more environmental impacts than their natural gas counterparts. In fact, some areas of the country do not permit fuel oil generation due to air quality concerns.
Sunday, May 8, 2011
Environmental Concerns
Environmental Concerns:
Category * Specific Issue * Environmental Impact
Air Pollution * Sulfur Dioxide(SO2) * Acid rain, local health issues
* Nitrogen Oxides (NOx) * Smog
* Carbon Dioxide (CO2) * Global Warming
* Mercury * Local Health issues
Water Resources * Use of water * Consumption of water resources
* Thermal discharges * Damage to fish and other species
* River ecosystem disruption * Damage to fish and other species
Nuclear Radiation * Release of radiation/fuel * Possible source of cancer
* Accident radiation release* Source of cancer and other diseases
Land Use * Environments/Mining * Impacts on pristine areas
* Environments/Construction * Visual and economic impacts in
urban areas, disruption to
pristine land in rural areas
Environmental Considerations:
The generation of electricity results in an environmental conundrum-use of electricity at the point of consumption is very clean (for instance, electric cars are non-polluting) yet generation of electricity often has significant environmental impacts. These include air pollution, water pollution, greenhouse gas emissions, ecosystem and land-use disruption, and the potential for release of radioactive materials. Areas of greatest concern include electric generation's contribution to acid rain, smog, global warming, and local health issues, as well as potential for radiation release.
Different types of generation have very different impacts, and environmental considerations can greatly influence how generation types are used as well as what types continue to be built. For example, environmental mitigation costs create an unattractive uncertainty for coal generation. Similarly, the potential for future political/environmental issues associated with nuclear generation have prevented any nuclear unit construction in the U.S. in the recent past. To foster cleaner generation sources, some states have moved to renewable portfolio standards (RPS) that require utilities and/or generation providers to acquire a certain percentage of their generation portfolio from renewable resources. Meanwhile,until the recent run-up in gas prices, most utilities and generating companies had favored new construction of gas-fired units in part due to the relative ease in obtaining environmental permits.
Category * Specific Issue * Environmental Impact
Air Pollution * Sulfur Dioxide(SO2) * Acid rain, local health issues
* Nitrogen Oxides (NOx) * Smog
* Carbon Dioxide (CO2) * Global Warming
* Mercury * Local Health issues
Water Resources * Use of water * Consumption of water resources
* Thermal discharges * Damage to fish and other species
* River ecosystem disruption * Damage to fish and other species
Nuclear Radiation * Release of radiation/fuel * Possible source of cancer
* Accident radiation release* Source of cancer and other diseases
Land Use * Environments/Mining * Impacts on pristine areas
* Environments/Construction * Visual and economic impacts in
urban areas, disruption to
pristine land in rural areas
Environmental Considerations:
The generation of electricity results in an environmental conundrum-use of electricity at the point of consumption is very clean (for instance, electric cars are non-polluting) yet generation of electricity often has significant environmental impacts. These include air pollution, water pollution, greenhouse gas emissions, ecosystem and land-use disruption, and the potential for release of radioactive materials. Areas of greatest concern include electric generation's contribution to acid rain, smog, global warming, and local health issues, as well as potential for radiation release.
Different types of generation have very different impacts, and environmental considerations can greatly influence how generation types are used as well as what types continue to be built. For example, environmental mitigation costs create an unattractive uncertainty for coal generation. Similarly, the potential for future political/environmental issues associated with nuclear generation have prevented any nuclear unit construction in the U.S. in the recent past. To foster cleaner generation sources, some states have moved to renewable portfolio standards (RPS) that require utilities and/or generation providers to acquire a certain percentage of their generation portfolio from renewable resources. Meanwhile,until the recent run-up in gas prices, most utilities and generating companies had favored new construction of gas-fired units in part due to the relative ease in obtaining environmental permits.
Sunday, May 1, 2011
Green Power is Clean Power
Renewable Energy sources
Today you can buy some or all of your electricity as Green Power. Green Power is electricity generated from renewable energy sources as solar, wind, biomass and hydropower.
Consumers have the power to choose Green Power and make a world of difference for generations to come. All for just a few cents more a day. And you can be confident that while you're helping safeguard our natural resources, your utility will still deliver your electricity safely and reliably.
Green Power:
* Produces fewer environmental impacts than fossil fuel energy
* Helps to diversify the fuel supply and contributes to more stable energy prices
* Reduces use of imported fossil fuels, keeping dollars spent on energy in the states economy
* Creates jobs and helps the economy by spurring investments in environmentally-friendly facilities
* Creates healthier air quality and helps to reduce respiratory illness
The mix of energy sources that was used to generate New York State's electricity in 2003:
Nuclear 29%
Natural Gas 22%
Coal 18%
Hydropower 17%
Oil 12%
Biomass 1%
Wind 1%
Solar 1%
Solid Waste 1%
Buying Green Power will help to increase the percentage of electricity that is produced using cleaner energy sources.
Today you can buy some or all of your electricity as Green Power. Green Power is electricity generated from renewable energy sources as solar, wind, biomass and hydropower.
Consumers have the power to choose Green Power and make a world of difference for generations to come. All for just a few cents more a day. And you can be confident that while you're helping safeguard our natural resources, your utility will still deliver your electricity safely and reliably.
Green Power:
* Produces fewer environmental impacts than fossil fuel energy
* Helps to diversify the fuel supply and contributes to more stable energy prices
* Reduces use of imported fossil fuels, keeping dollars spent on energy in the states economy
* Creates jobs and helps the economy by spurring investments in environmentally-friendly facilities
* Creates healthier air quality and helps to reduce respiratory illness
The mix of energy sources that was used to generate New York State's electricity in 2003:
Nuclear 29%
Natural Gas 22%
Coal 18%
Hydropower 17%
Oil 12%
Biomass 1%
Wind 1%
Solar 1%
Solid Waste 1%
Buying Green Power will help to increase the percentage of electricity that is produced using cleaner energy sources.
Wednesday, April 27, 2011
Reliability
Reliability remains the same:
Switching to an ESCO will not change the reliability of your energy supply.
Electricity and gas will continue to be delivered through utility-owned wires and pipes, and the Public Service Commission will continue to oversee the safety and reliability of the delivery system.
Your utility is required to continue supplying your electricity and gas without any interruptions if your ESCO cannot provide service for any reason.
Your electricity and gas service can be shut off only by a representative of your utility. However, an ESCO may request that the utility suspend delivery service due to unpaid bills.
For any electric or gas emergency, continue to call you utility even if an ESCO supplies your electricity or gas.
No matter who supplies your electricity or gas, you remain a customer of the utility for your delivery services.
Switching to an ESCO will not change the reliability of your energy supply.
Electricity and gas will continue to be delivered through utility-owned wires and pipes, and the Public Service Commission will continue to oversee the safety and reliability of the delivery system.
Your utility is required to continue supplying your electricity and gas without any interruptions if your ESCO cannot provide service for any reason.
Your electricity and gas service can be shut off only by a representative of your utility. However, an ESCO may request that the utility suspend delivery service due to unpaid bills.
For any electric or gas emergency, continue to call you utility even if an ESCO supplies your electricity or gas.
No matter who supplies your electricity or gas, you remain a customer of the utility for your delivery services.
Sunday, April 24, 2011
Understanding Your Bill
An example of an itemized bill
Whether you choose to buy energy from an ESCO or your existing utility, supply and delivery charges that used to be bundle together will be itemized. You may still pay your utility for delivery, but your energy supply charges will be a separate line item on your bill.
If you choose an ESCO, you may receive two bills--one bill from the ESCO for the energy portion, and one from the utility for the delivery portion.
There are likely to be other billing options available. You might get one bill from the utility that will include the ESCO's charges for supply, or one bill from the ESCO that will include the utility's charges for delivery. Ask your ESCO about your billing options prior to enrollment.
To help you be a more informed consumer, utility bills list specific services and charges.
SAMPLE ENERGY BILL:
This is a simplified example of a bill for electricity.
(Natural gas bills indicate usage in units of Therms rather than kWhs.)
Your actual usage and charges will vary.
This example is based on a monthly usage of 500 kWh of electricity:
Basic Service Charge $9.00
Delivery Charge
500 kWh @ 6.0 cents $30.00
Taxes (e.g. 4%) $1.56
Total Electric Delivery Charge $40.56
Electric Supply
500 kWh @ 8.0 cents $40.00
Taxes (e.g. 3%) $1.20
Total Electric Supply Charge $41.20
Total Electric Charge $81.76
kWh (KILOWATT-HOUR): The standard unit of electricity use measured by your meter. kWh is an abbreviation for kilowatt-hour. A 100-watt bulb used for 10 hours consumes one kWh. Your electricity use determines the total number of kilowatt-hours on your bill.
THERM: A unit of heat content equal to 100,000 British Thermal units (BTU). A BTU represents the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. The number of therms is used to determine the gas charges on your bill.
TERMS:
Basic Service (or Customer Charge):
This charge covers basic customer-related costs for meter reading, billing, equipment and maintenance. Regardless of how much energy is used during the billing period, this charge remains the same.
Delivery Charge:
This is the charge for bringing electricity form your chosen supplier to your home or office.
Taxes:
This portion of your bill encompasses both the state Gross Income Tax and a Gross Earnings Tax. Many municipalities charge other taxes. The appropriate amounts for these taxes are applied to all rates and charges and vary by locality.
Electric Supply:
This is the charge for the electricity used during the billing period. This is the amount for which you can shop and many vary depending on which supplier you choose.
*System Benefits Charge (SBC:
Your bill includes the SBC which is approximately 70 cents in this example. This amount reflects cost associated with public policy programs, including research and development, low income and energy efficiency programs. This charge does not apply to gas bills.
Whether you choose to buy energy from an ESCO or your existing utility, supply and delivery charges that used to be bundle together will be itemized. You may still pay your utility for delivery, but your energy supply charges will be a separate line item on your bill.
If you choose an ESCO, you may receive two bills--one bill from the ESCO for the energy portion, and one from the utility for the delivery portion.
There are likely to be other billing options available. You might get one bill from the utility that will include the ESCO's charges for supply, or one bill from the ESCO that will include the utility's charges for delivery. Ask your ESCO about your billing options prior to enrollment.
To help you be a more informed consumer, utility bills list specific services and charges.
SAMPLE ENERGY BILL:
This is a simplified example of a bill for electricity.
(Natural gas bills indicate usage in units of Therms rather than kWhs.)
Your actual usage and charges will vary.
This example is based on a monthly usage of 500 kWh of electricity:
Basic Service Charge $9.00
Delivery Charge
500 kWh @ 6.0 cents $30.00
Taxes (e.g. 4%) $1.56
Total Electric Delivery Charge $40.56
Electric Supply
500 kWh @ 8.0 cents $40.00
Taxes (e.g. 3%) $1.20
Total Electric Supply Charge $41.20
Total Electric Charge $81.76
kWh (KILOWATT-HOUR): The standard unit of electricity use measured by your meter. kWh is an abbreviation for kilowatt-hour. A 100-watt bulb used for 10 hours consumes one kWh. Your electricity use determines the total number of kilowatt-hours on your bill.
THERM: A unit of heat content equal to 100,000 British Thermal units (BTU). A BTU represents the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. The number of therms is used to determine the gas charges on your bill.
TERMS:
Basic Service (or Customer Charge):
This charge covers basic customer-related costs for meter reading, billing, equipment and maintenance. Regardless of how much energy is used during the billing period, this charge remains the same.
Delivery Charge:
This is the charge for bringing electricity form your chosen supplier to your home or office.
Taxes:
This portion of your bill encompasses both the state Gross Income Tax and a Gross Earnings Tax. Many municipalities charge other taxes. The appropriate amounts for these taxes are applied to all rates and charges and vary by locality.
Electric Supply:
This is the charge for the electricity used during the billing period. This is the amount for which you can shop and many vary depending on which supplier you choose.
*System Benefits Charge (SBC:
Your bill includes the SBC which is approximately 70 cents in this example. This amount reflects cost associated with public policy programs, including research and development, low income and energy efficiency programs. This charge does not apply to gas bills.
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