Residential rates for electricity are charged using tiered pricing. Tiered pricing means different rates are charged depending how much energy you use. The less energy a customer uses, the less energy the customer is charged at a higher rate. By staying in a lower tier, customers pay less. Tiered pricing encourages customers to conserve energy and use it efficiently.
As an example, the breakdown of the energy charges for a residential customer who uses 1,240 kWh would be:
| 1,000 kWh x 10.1002 cents (tier 1) | $101.00 | |
| + | 240 kWh x 11.7423 cents (tier 2) | $28.18 |
| = | 1240 kWh | $129.18 |
If that same customer used only 500 kWh during the same time period, no energy would fall into the higher priced second tier, resulting in a total of:
| 500 kWh x 10.1002 cents (tier 1) | $50.50 | |
| + | 0 kWh x 11.7432 cents (tier 2) | $0 |
| = | 500 kWh | $50.50 |
Residential Tiered Rates
Service Charge per month: $10.00. See our Bill Glossary for definitions about the charges and terminology on your bill.
| Tier 1 | Tier 2 | |
|---|---|---|
| Kilowatt-hours (kWh) | 0-1,000 | 1,000+ |
| Rate (cents per kWh) | 10.1002¢ | 11.7423¢ |