## Typical Electric Bill Calculation

Figure 22-2 is a sample electric rate tariff for a seasonally differentiated electric rate. In this example, assume that the customer's electricity usage in August was 200,000 kWh and the peak demand was 1,655 kW The energy rate is adjusted to account for the FAC and the nuclear decommissioning surcharge. To the base rate of \$0.05890 per kWh, \$0.00123 is subtracted to account for the fuel adjustment and \$0.00074 per kWh is added to account for the surcharge. The resulting net energy charge is \$0.05841. Note that the FAC varies each month and can be either positive or negative. The monthly charge for energy is therefore: 200,000 kWh x \$0.05841 per kWh = \$11,682.00 The monthly charge for demand is: 1,655 kW x \$10.02 per kW = \$16,583.10

The resulting total pre-tax utility bill is: \$28,336.39

The total bill for the month is: \$29,979.90

If the customer had used no electricity during the billing month, and the highest demand in the previous 11 months is assumed to be 1,890 kW, the pre-tax bill would be only the service charge of \$71.29, plus a minimum (demand ratchet) charge of:

for a total of \$8,708.59. Adding on the state and city tax of 5.8% results in a final bill of \$9,213.69 for the month. This extreme example illustrates the importance of accounting for all elements of the rate structure. Had the demand charge been ignored, the bill calculation would have been grossly underestimated.

## Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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