A utility bill is affected by theamount of energy you use,your facility's usage patternsand your energy costs. Understanding electric rateschedules, and how you arebilled for electric service canhelp you save money. Together they typicallyrepresent 75 to 90 percent ofyour electric bill. Power isthe rate at which we useelectrical energy. One kilowatt is equalto 1,000 Watts.
Energy is the product of thepower multiplied by theperiod of time the power isused.
From an efficiencyperspective, the energyequation tells us that there areonly two ways to reduceenergy use. Also, youcan turn off power equipmentwhen it is not needed. Since the storage and lateruse of electricity is notpractical or economical inmost applications, the utility'ssystem capacity must equalthe sum-total of itscustomers' peak demands,plus a reserve margin. Several other billingcomponents include customercharges, energy costadjustments, power factorcharges, etc. Together, thesecomponents represent 10 to25 percent of your total bill.