PowerPoint Presentation:
Electricity cost comes about through the rates that are charged and the prices that are set partly by the Public Utilities Commission, or PUC, of each state. Each state has the ability to rename the utility watchdog agency, so it is wise to check to see what the name is in each different state. These organizations oversee each power provider to maintain that consumers are being charged a fair rate. These were once put in place to regulate the power industry when it was regulated, and now they oversee the deregulated areas as well. The electricity cost that consumers are charged may vary according to which state they reside in, whether or not their state has deregulated energy, and whether or not they live in an area that is included in the deregulation. The reason this is important is because in a deregulated state, a customer will have the option of choice when it comes to a power provider. In a regulated area, there is only one provider without a choice. Some states are divided into regions that have both deregulation and regulation. That utility commission will be able to answer questions regarding which type of market it is. Electricity cost for a business is going to be different from that of a residence. This is mainly to do with the voltage that is required and the amount of consumption that the two different types of customers will consume. There are charges on the bill other than just usage at the rate that was quoted. These are charges for taxes and overhead expenses that must be maintained in order for the power company to provide service. They include things such as employees, technicians, facilities, fuels, repair vehicles, and many other types of things that are necessary to not only have but to properly maintain in order to keep uninterrupted service on. Electricity cost is derived mostly from the rates that the consumer is paying. The rates are listed on the energy bill next to the kilowatts of consumption that was used in any cycle or statement period. The rate is decided upon by doing a simple math equation that divides what the utility makes by the amount that they sell. The end result is the per kilowatt rate. A consumer has some control over what the electricity cost will end up being. While a consumer cannot control the final rate that is charged, there are things that can be done that will ensure that the end result will be the lowest bill possible such as practicing energy conservation. Consumers can ask the power provider for a detailed explanation of all of the charges that appear each month on the statement. This will aid in understanding where the money is going and why. Being an informed consumer can allow customers to make better decisions which will eventually lead to paying less for power. Saving money is important to every family, and understanding how the bill is cycled and what is included is the first step to savings.