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Why electricity and gas bills are skyrocketing

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Knowing your electricity or gas bill each month is an important part of managing your energy budget. When reading your electricity or gas bill, you may be wondering how much your electricity or gas supply costs, what the units mean and how they are calculated. If you are having trouble understanding your energy bill, BBIER can help. Here, we’ll understand your statement and explain how your electricity usage affects costs.

Electricity Bill Breakdown: Fees, Fees, and How They’re Calculated
The key to understanding your utility bill is understanding your energy costs and the items shown on your bill. First, you need to identify who is providing your power (if you don’t already know). If you do, get a copy of the utility bill from the supplier you will be using, or find a sample utility bill or monthly statement. Your bill may come from your utilities. That’s because in some states, you can choose your energy supplier, which may be different from your utility.
Each bill is usually broken down into several home energy charges, which may vary slightly depending on the supplier or utility. The total you owe will be the sum of the electricity you used, the service charges involved in bringing the electricity to your home, and any applicable taxes. Knowing your electricity bills will come through increased familiarity with these specific charges.

What are the charges on my utility bill?
So, how is the electricity bill calculated? If you glance at your statement, you’ll see some items add up to your total. The format of your utility bill varies, but you may see a version of the following:

Energy/Supply Costs: On your utility bill, you will see a list of your home’s electricity usage for the month in kilowatt-hours or kilowatt-hours. You can have the most control over this part of your bill by reducing your usage or opting for an energy plan.

PUC Approved TDU Surcharge/Transmission Charge on Electricity Bill: When you are looking at your electric bill, you may be thinking, “How much is the shipping charge on my electric bill? How much is the transmission charge on my electric bill ?” These are frequently asked questions about electricity bills. The transmission or utility distribution charges on the electricity bill are part of the maintenance and upkeep of the line to ensure a steady supply of power. Your bill may list it as “[Your Transmission and Distribution Utility Name] PUC Approved Surcharge,” where “PUC” stands for “Public Utilities Commission,” but the effect on your electric bill remains the same.
Usage Fee/Credit: This is money given back to customers on their electricity bill if they use less than or equal to the specified amount of energy per billing cycle.
Sales Taxes and Assessments: This line item reflects taxes levied by your state or locality, as well as any regulated assessment fees and charges. These charges are part of most electricity bills.

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How is the electricity bill calculated?
You need to know how to read your utility bill to keep your electricity bills under control. You can affect this cost in two ways: by reducing your usage and by the energy plan you choose. The first part entails understanding how you are using electricity by examining your utility bills. Learning how to calculate electricity costs will help you crack your electricity bill.
When you read your electricity bill, you’ll see the total cost of your energy usage for the month. Knowing your utility bill means knowing where that number comes from. Your electricity usage is measured in kilowatt-hours (kWh), which is 1,000 watts used for 1 hour. The utility company reads your meter, it tracks your usage, and then subtracts the new usage from the old number to find out how many kilowatt-hours you’ve used. Then, multiply that number by the rate you pay per kilowatt-hour to get your electricity bill for the month. Therefore, knowing kWh can help you control your energy costs.
Another aspect of saving energy is choosing the right plan for you or your business. Many choose to lock in the price when rates are at their lowest and keep it fixed for a year or two. Some people choose to pay a variable rate on a monthly basis. Some businesses choose a combination of fixed and variable rates as part of their energy procurement strategy.

What spends the most on your electricity bill?
After identifying your usage as part of your electricity bill breakdown, the next step in keeping your energy budget in check is finding where you can cut back. Every home and business is different, but if your energy bills are higher than usual, here are some common power-hungry systems and appliances to check first:

HVAC system. Heating and cooling always require a lot of energy. light. Running lights, both indoors and outdoors, consume a lot of electricity, especially for businesses. major appliances. Refrigerators, freezers, dishwashers, ovens, and other large appliances use a lot of electricity in the home. More are used by their industrial counterparts. Computers and other electronics. From desktops to gaming systems to televisions, electronic devices tend to consume a lot of power.

Homeowners and small businesses can reduce their electricity bills by finding ways to use electricity more efficiently, such as by automating their biggest power-hungry appliances. If you’re a business owner facing high capacity costs, you won’t have much information on how to assess that rate, but you can do your part by helping to reduce These cost all users time and reduce energy consumption during peak hours. Peak times vary by location and season, so contact your electricity provider for information on how to avoid peak usage times in your area.

Your Gas Bill Explained
Knowing your energy costs doesn’t stop with knowing your electricity bills. Your natural gas bill can make up a large portion of your home energy bill. Depending on where you live and your supplier, you may need to familiarize yourself with several terms to understand your natural gas bill.
There are some differences between fixed rate and variable rate plans that can affect your natural gas bill. Understanding your natural gas bill gets more complicated when you’re charged a variable rate that may change from month to month. Fixed rate billing is simpler than variable rate and keeps the gas rate you pay the same each month – the only difference is your usage.

Common Gas Bill Terms
As with electricity bills, one of the keys to understanding your natural gas bill is defining the common energy terms you’ll see on the page. Specific gas bill terms include the following:

Ccf: Gas is measured by volume, 1 Ccf equals 100 cubic feet. Your monthly gas supply bill may be broken down into this unit of measure.

Btu: British Thermal Unit or Btu is a unit of energy measurement used to calculate the energy required to raise the temperature of one pound of water by 1 degree Fahrenheit.

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Therm: One heat is equivalent to 100,000 Btu. This is the unit typically used to calculate your monthly gas bill. If your rate is variable, the price you pay per heat may vary based on time of year, availability, and other cost factors.
Gas Fee: This is the cost of the gas you used last month.
Delivery Fee: This is your share of the cost of delivering gas from the supplier to your home or business. It includes the costs of distribution, transmission and conversion.
Taxes: A small portion of your gas bill will be assessed by state and/or local governments.
Customer service fees: These include fixed costs such as meter reading and billing administration costs.
Capacity charges: These charges cover the cost of maintaining the ability to deliver natural gas through interstate pipelines on days when demand is highest.

How are gas bills calculated?
Similar to how electricity is billed, the total due on your gas statement will be the sum of your gas supply charges, other delivery and service charges, and taxes. The supply charge on your natural gas bill is the actual amount of energy used, which can be gas volume (such as Ccf) or energy (such as Btu or therms). Multiplying that number by the rate you pay will give you the cost, or gas supply charge.
Knowing Your Gas and Electric Bills Can Help You Save
The more you know about what’s on your bill, the more control you have over usage, helping you find ways to save. Conserving energy can help you save money while also reducing your environmental impact. By following a few simple tips and making small changes around your home, you may see lower home energy bills.

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