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 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 8.4275 cents (tier 1) | $84.27 | |
| + | 240 kWh x 9.8455 cents (tier 2) | $23.63 |
| = | 1240 kWh | $107.90 |
Alternately, if that same customer used only 500 kWh during the same time period, less energy would fall into the higher priced second tier for a total of:
| 500 kWh x 8.4275 cents (tier 1) | $42.14 | |
| + | 0 kWh x 9.8455 cents (tier 2) | $0 |
| = | 500 kWh | $42.14 |
Residential Tiered Rates
Service Charge per month: $8.00. 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) | 8.4275¢ | 9.8455¢ |