It is very important to know how to read your electric bill and to understand how power company rates affect your total electricity cost. Payless Power, a provider of cheap electricity in Dallas, can explain your electric bill by looking at each part of your monthly billing statement. Here is a list of the areas you will find on a typical electric bill:
- Customer contact information – Your name, address and account number.
- Provider contact information – The electric company’s name, address and phone numbers for customer service questions and billing issues.
- Key or Guide – May include a glossary of terms used to help you read the bill and understand each entry.
- Plan type –There are four types of billing plans, including:
- Fixed Rate Plan – The rate is locked in for a specific amount of time.
- Variable Rate Plan – The rate can change each month based on the electric company’s costs.
- Indexed Plan – The rate can change each month based on a formula using a specific energy index.
- Prepaid Rate Plan – The customer pays the electric company in advance for each month, no deposit is required and no credit checks are necessary.
- Readings – The previous month’s usage and current month’s usage. The difference between these two amounts is the usage for which you are being billed. It is recommended you keep track of the monthly electricity usage for a year. You will see how the changes in usage correlate with the changes in seasons.
- Estimated Readings – The electric company does not physically read your electric meter each and every month, so an estimate is used based on previous monthly readings. If you notice that there are several estimated readings in succession, call the electric company provider to inquire why actual readings have not been performed.
- Rate – The standard unit of measurement of electricity usage is the kilowatt-hour (kWh). One kWh is equal to 1000 watts being used over a period of one hour. The average rate per kWh is then equal to a determined amount.
- Charges, Fees, and Taxes – A monthly usage charge ranging from $4.00 to $20.00 is included in the billing amount to cover the electric company’s administrative costs. State sales tax is also added, and sometimes distribution surcharges are applied.
- Total Amount Due – This is the total due to be paid to the electric company for the specific billing cycle.
- Miscellaneous information and other data are often included on the statement to provide updates from the electric company and energy conservation tips.
There are several sections or parts of a monthly electric bill. Payless Power, providing cheap electricity in Dallas with low power company rates, has provided the above breakdown of an electric bill so that reading your own bill isn’t so confusing!