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21
05 DETERMINE BILLING MODE AND BILLING RAT E
20
Tiered Rate Billing – Example
If you have tiered billing, you are charged an initial rate for an initial amount of power, or
tier; then a higher rate if you exceed that initial amount. Your billing plan may have sev-
eral tiers.
You will need to determine the rate and threshold for each billing tier. Refer to the exam-
ple below:
Example of a three-tier billing plan
Similar information will be available from your utility; call or consult their web site if this
information is not on your bill.
Power consumption,
kWh
(kilowatt-hours)
Threshold 1
1300 kWh
Threshold 2
2300 kWh
1300 kWh at
the lowest rate
1000 kWh at the
middle rate
400 kWh at the
highest rate
If your total
consumption is
2700 kWh…
…you will be
billed for:
Three rates, two thresholds
Generation charges per kWh 1300 kWh X $.0500 $ 65
Generation charges per kWh 1000 kWh X $.1000 $100
Generation charges per kWh 400 kWh X $.1500 $ 60
Transmission charges per kWh 1300 kWh X $.0200 $ 26
Transmission charges per kWh 1000 kWh X $.0500 $ 50
Transmission charges per kWh 400 kWh X $.0700 $ 28
Public benefits fees per kWh 1300 kWh X $.0050 $ 6.50
Public benefits fees per kWh 1000 kWh X $.0100 $ 10
Public benefits fees per kWh 400 kWh X $.0200 $ 6
TOTAL CHARGES $351.50
E L E C T R I C B I L L
Besides the
cost of the
electricity
itself, your bill
may have
additional
charges, fees,
and taxes
that are
linked to your
amount of
consumption
The lowest rate is the
Tier 1 rate.
Add all the Tier 1
charges to get a total of
$0.075/kWh.
Multiply by 100 to get
7.5¢/kWh.
The Tier 1 threshold is
1300 kWh.
The middle rate is the
Tier 2 rate.
Add all the Tier 2
charges to get a total of
$0.16/kWh.
Multiply by 100 to get
16¢/kWh.
The Tier 2 threshold is
1300 kWh + 1000 kWh
= 2300 kWh.
The highest rate is the
Tier 3 rate.
Add all the Tier 3
charges to get a total of
$0.24/kWh.
Multiply by 100 to get
24¢/kWh.
There is no threshold
for Tier 3.
For this example, you would record your billing data in the form like this:
Example bill for this three-tier billing plan:
Tier 1 ¢/kWh kWh
Tier 2 ¢/kWh kWh
Tier 3 ¢/kWh kWh
Tier 4 ¢/kWh kWh
Tier 5 ¢/kWh kWh
Tier 6 ¢/kWh kWh
RECORD YOUR BILLING RATES AND THRESHOLDS HERE
BILLING RATE THRESHOLD
7.5
16
24
1300
2300
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