Your electricity bill typically shouldn’t be a surprise. Understanding how, what and why rates are determined and measured can benefit customers now and in the long run. Elevate Energy has helped clear up some of the confusion surrounding energy bills in its latest blog post. For the consumer, rates are calculated with both supply and delivery costs in mind.
Utility companies adjust rates during peak hours to alleviate the demand on the infrastructure. Supply rates exist in four basic models: flat rate, time of use rate, critical peak pricing rate, and hourly pricing rate. All of these designs take time of day and the rate of use into account when establishing these costs.
On the other end, energy companies charge delivery fees to help cover the cost of distributing electricity and natural gas to businesses and households. Customers pay a flat fee that does not change from month to month. There are three delivery charges, in addition to the base rate: use-based distribution charges, demand-based distribution charges, and minimum bills. Similar to supply rates, delivery rates are primarily based on the amount of energy consumed, especially during peak-demand time.
ComEd provides the electricity for all properties in Evanston. All of the information about their rates and billing can be found in their Residential Rate Pamphlet.