Title: 5 Key Elements of Your Electricity Bill
Headings: 5 Key Elements of Your Electricity Bill
5 Key Elements of Your Electricity Bill
Energy-Saving Opportunities
This approved rate of return, coupled with the utility’s cost structure, determine prices customers will pay.
So, let’s go through each of 5 key elements of your electricity bill:
1. Electricity metering
Reactive power requirements, usually expressed in power factor, can also be a significant cost.
2. Demand
“Demand” is the average instantaneous power consumption over a set time interval, usually 15, 30, or 60 minutes.
3. Energy consumption
4. Load factor – Demand / Energy relationship
LF = kWh / (kW * days * 24)
5. Power factor
Typical energy auditing process
Example of Electricity bill
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Edvard Csanyi

Content: As such, utility prices have often been set by local, state, or federal regulators, entities that review electric utility costs, revenues, investment decisions, fuel prices, and other factors to arrive at a target rate of return. This approved rate of return, coupled with the utility’s cost structure, determine prices customers will pay. These prices are established in electric utility tariffs, or rate schedules. Rate tariffs are usually established for different classes or sizes of customers. Common class types may include industrial, commercial, residential, municipal, and agricultural. Each customer class may have one or more rate schedules available, and it is common for the electric utility to allow a facility to choose the rate schedule within its class that offers the lowest price. So, let’s go through each of 5 key elements of your electricity bill: Electricity metering
Demand
Energy consumption
Load factor – Demand / Energy relationship
Power factor
1. Electricity metering
Electric utilities meter both the real and reactive power consumption of a facility. The real power consumption, and its integral – energy, usually comprise the largest portion of the electric bill.