Electric Rates - Why Have an Audit?

When you think about your electric bill, you probablypossible- not always the least expensive. It is usually
like most people, get very intimidated. With its manythe customer's responsibility to research the tariff to
different line items charges, references to meterfind and determine whether or not any other rates
numbers and account numbers, rate schedule codes,are available and or would be beneficial. The tariff lists
etc. The electric bill can be very hard to understandout the different rates available and explains the
and when you try to implement ways to save, howqualifications for each in addition to the charges to be
will you know when what you have done hascharged by each. A tariff is governed by a regulatory
worked? Before you can accurately analyze anbody like the Public Service Commission.
electric bill and determine ways to reduce it, anRate Schedule Examples
understanding of the items being charged on it is aThe rate schedule governs everything related to the
must. Sometimes, the bill itself and the items thereoncharges you see on your electric bill. The customer
and furthermore the way these items are beingcharge, the demand or peak draw charge, and of
charged and manipulating them are the easiest andcourse the kWh charge are all based on the electric
best way of reducing your electric bill. Rarely, doesrate schedule you are being billed under. These rates
one utility company bill the same as another. Somehave names like General Service (GS), General
items are billed by one company and not by anotherService Demand (GSD), General Service Demand
and so on. The electric rates schedule spells outTime of Use (GSDTOU), etc. A manufacturing
which charges are being billed and at what rate. Forcompany might be put on GSD rate. This rate would
example, your price per kilowatt hour might be 10mean that this customer, in addition to paying for the
cents or 5 cents depending on your rate. There arecustomer charge, taxes, and kWh charges, would
some basic rate classifications and distinctions that willalso be charged a demand charge. Sometimes a
likely be present and billed for by most utilitiesdemand charge can be greater than any other
companies. Each of these billing distinctions will dependcharge on the bill. What if this customer could save
upon the rate schedule classification you are on.money simply by opting out of this rate and change
What Is A Rate Schedule Classification?to another rate like GS or GSTOU? Because the
The rate schedule classification is the rate scheduleoptional rates are hidden in the tariff, unless the
that your utility company has decided to bill yourcustomer has read the tariff and understood it, how
account and or meter under. Most electric utilitieswill they know if they are on the best rate? That is
have several rate schedule possibilities available towhere a professional bill auditing company can come
each customer. The utility company generally putsin. They can determine if you are being billed
each customer on the most basic applicable ratecorrectly and are on the best rate.