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Electricity Costs
- Electricity costs vary from State to State and within states.
- Electricity costs around the U.S. can vary by a factor of 10 depending on the State, location within the State and by local Electric Distribution Companies (EDCs). Electricity rates can below if the facility is close to a hydro electric plant. Electricity rates can be very high when served by nuclear plants or oil in California, Hawaii and the US Virgin Islands.
- In many areas, electricity costs have increased following deregulation due the State PUCs granting power companies the right to recover "stranded investments" from their rate payers (often called Transition Costs on the deregulated electricity bills.). Many clients report their electricity costs increase by 10% to 15% following their State's deregulation of electricity markets
- Some electric utilities design their rates based on electrical demand peak (KW or KVA) .plus KWH consumption. Others tie their rate design to their true electricity generation cost (market based rates) and vary the KWH and KW cost based on the time-of-day and day of the week.
- Some EDCs have also added new fees for services traditionally included in the rate such as "line extension" fees for new electricity services.
- In other cases there are new government required fees and taxes added to electricity bills. Some states also have 'KWH taxes' to fund state demand-side management (DSM) programs also known as public benefit funds.
