Components of the Electric Bill
Facility Charge – A charge for having access to metered electric service. This charge covers fixed expenses such as property taxes, interest on long term debt and depreciation expense.
Generation and Transmission Charge – A charge for the production and the transporting of electric energy to the local electric system. Generation is act of producing electricity by means of power plants that use coal, natural gas, or a type of renewable energy such as wind, solar etc. Transmission is the act of transporting high voltage electric energy in bulk from a generation source (power plant), to other principal parts of the electrical system, ie, substations and delivery points. The base charge is $0.0477 per kwh.
Generation and Transmission Adjustment – The cost of energy that is over or under the base rate charge of $0.0477. If the cost of energy exceeds the base rate then it is an added amount to the bill. If the cost of energy is under the base rate then you would receive a negative amount or credit on the bill. The combined G&T Charge and the G&T Adjustment is a straight pass through meaning the consumer pays the amount that it costs our cooperative for the generation and transmission.
Distribution Charge – The charge for delivering electric energy from substations and delivery points to homes and businesses. The energy is delivered at a lower voltage than what travels through transmission lines. The charge is $0.0262 per kwh. Revenue from this charge is what the cooperative operates on. It covers accounting, billing and operating costs. The state kwh consumption tax is also included in this line which the cooperative collects and sends to the state.