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05 DETERMINEBILLING MODE AND BILLING RATE
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.
Besides the |
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Generation charges per kWh | 1300 kWh X $.0500 | $ | 65 | |||||||||
cost of the | ||||||||||||
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electricity | Generation charges per kWh | 1000 kWh X $.1000 | $100 | |||||||||
Generation charges per kWh | 400 kWh X $.1500 |
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| $ | 60 | ||||||
itself, your bill |
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may have |
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additional | Transmission charges per kWh | 1300 kWh X $.0200 | $ | 26 | ||||||||
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charges, fees, | Transmission charges per kWh | 1000 kWh X $.0500 | $ | 50 | ||||||||
Transmission charges per kWh | 400 kWh X $.0700 |
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| $ | 28 | ||||||
and taxes |
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that are | Public benefits fees per kWh | 1300 kWh X $.0050 |
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linked to your |
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Public benefits fees per kWh | 1000 kWh X $.0100 |
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amount of |
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Public benefits fees per kWh | 400 kWh X $.0200 |
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consumption |
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| TOTAL CHARGES |
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Power consumption,
kWh
If your total consumption is 2700 kWh…
Threshold 2 2300 kWh
Threshold 1 1300 kWh
…you will be billed for:
400 kWh at the 
highest rate
1000 kWh at the middle rate
1300 kWh at 
the lowest rate
The lowest rate is the | The middle rate is the | The highest rate is the | |
Tier 1 rate. | |||
Add all the Tier 1 | Tier 2 rate. | Tier 3 rate. | |
Add all the Tier 2 | Add all the Tier 3 | ||
charges to get a total of | |||
$0.075/kWh. | charges to get a total of | charges to get a total of | |
Multiply by 100 to get | $0.16/kWh. | $0.24/kWh. | |
Multiply by 100 to get | Multiply by 100 to get | ||
7.5¢/kWh. | |||
The Tier 1 threshold is | 16¢/kWh. | 24¢/kWh. | |
The Tier 2 threshold is | There is no threshold | ||
1300 kWh. | |||
| 1300 kWh + 1000 kWh | for Tier 3. |
=2300 kWh.
For this example, you would record your billing data in the form like this:
RECORD YOUR BILLING RATES AND THRESHOLDS HERE
| BILLING RATE | THRESHOLD |
Tier 1 | 7.5 ¢/kWh | 1300 kWh |
Three rates, two thresholds
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Tier 2 | 16 | ¢/kWh |
| 2300 | kWh |
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Tier 3 |
| ¢/kWh |
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| kWh |
24 |
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Tier 4 |
| ¢/kWh |
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| kWh |
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Tier 5 |
| ¢/kWh |
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| kWh |
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Tier 6 |
| ¢/kWh |
| - - - | kWh |
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20 |
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| 21 |
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