I hope you and your family had a great holiday season and hope for a great 2018. As we move into the New Year, I wanted to touch on electric rates and what we can expect moving forward.
Your electric rates are simply based on the cost of service for each rate class. It may be overstating it to say simply! We have several components that drive electric rates.
- Energy — Kilowatt-hours used by the customer
- Demand — The amount of energy used or demanded by a customer over a given time. This is the peak need required by the consumer.
- Transmission — Cost to move the energy from the generator to a localized delivery point
- Distribution — Cost to distribute the energy from a localized delivery point to the end user
- Planning and Engineering — Ensuring the system is adequately built to serve the load