TED 1001 - Appendix E Understanding Your Electricity Bill

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A P P E N D I X E
U N D E R S T A N D I N G Y O U R E L E C T R I C I T Y B I L L
It is important to understand how your electric utility calculates your electricity bill, to insure
that TED is programmed to make the calculation in the same way and thus arrive at the
same total. Unless your bill is exceedingly simple, please read the following carefully.
NOTE: If you are charged different rates depending on time of day or time
of year or if your utility assesses a demand penalty for exceeding a specied
kW demand then you cannot use simple setup. Please refer to additional
information in Appendix D.
If you are using Simple Setup, TED uses a fairly simple set of formulas to calculate your
utility bill:
As an example, lets assume your utility uses a two-tiered rate structure (TED will accept up
to three tiers) where the rate for the rst 500 kWh is $0.1001 per kWh and for any over this
is $ 0.1500 per kWh. The PUC has allowed your utility an energy surcharge of $5 because
of high natural gas prices, you pay a xed charge of $10.00 per month for street lighting and
the sales tax rate in your area is 6%. Lets assume that TED has measured your usage for
the billing month at 1500 kWh. TED calculates the Month-to-Date as follows:
Energy Charge for the rst 500 kWh 500 kWh x $0.1001 $ 50.00
Energy Charge for the remaining 1001 kWh 1001 kWh x $0.1500 $ 150.00
Subtotal $ 200.00
Energy Surcharge $ 5.00
Subtotal $ 205.00
Fixed monthly charge for street lighting $ 10.00
Subtotal $ 215.00
Sales Tax 6% $ 15.00
Total Month to Date $ 230.00
Note that the Energy Surcharge is only added to the energy cost, but the sales tax is
added to the entire bill. Highlighted items are values you enter when programming TED
in SETUP mode.
There are over 4000 electric utilities and electric coops in the US and Canada. Many
have rate structures which may be presented in a slightly different manner. It is impor-
tant to analyze your electric bill and program TED as close as possible to match your
bill. As an example, your bill might look like this:
• Delivery Charge $.080 per kWh
• Billing Fee $0.010 per kWh
• Debt Retirementt $0.020 per kWh
To program TED, simply add all these up and enter a rate of $ 0.1100 per kWh as your
energy rate.