There are many line items that make up your monthly bill. Today, we’re going to discuss what they are and what business owners can do to minimize them.
Your monthly charges can be broken into three categories. Let’s break them down to see what they mean when it comes to how you pay for your energy.
- Fixed Charges
Fixed charges are a baseline component of all electric bills. You will be charged this amount no matter how much you use.
- Demand (kW) Charges
Your demand or kilowatt charges are determined by a dollar rate multiplied by your maximum energy use during any 30-minute interval throughout the month.
- Usage (kWh) Charges
Your energy usage or kilowatt hour charges are determined by a dollar rate multiplied by your total energy usage over the monthly billing period.
Now that you know how you are billed, how can we translate this information into a lower monthly electric bill?
- Lower your Demand (kW)
You can reduce your demand through investments, such as installing more efficient lighting, or by changing behaviors, such as staggering equipment use at different times rather than running everything at once.
- Reduce your Usage (kWh)
Simple steps can create an impact on your usage charges. Try turning off lights, fans, and equipment not being used throughout the day. Also, unplug electronic items that are not in use.
- Shop for a Lower Supply Rate ($/kWh)
Because of deregulation in the Ohio energy market, you have the ability to shop for a lower per kilowatt hour rate on the supply portion of your bill. This allows you to reduce your usage charges if you find a better rate.
Feel free to email us at email@example.com for questions or to learn more about the components of your electric bill and what you can do to reduce your costs!