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Components of My Bill
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Your electric bill is unbundled, meaning we show the various components that make up your full bill. This is done to make you a more informed consumer of your energy use and charges. The various parts of your bill include:
Monthly Service Charge:
This is a fixed monthly amount that incorporates some of the costs associated with having electricity available at the flip of a switch, 24 hours a day, seven days a week.
Energy KWH Charge
This is the cost of generating and transmitting the power you used for that billing cycle based on the rates we establish with our power supplier. Midwest Energy Cooperative does not generate its own electricity; our power supplier negotiates deals on behalf of its member systems and establishes rates based on those contracts. While we incorporate the power supply costs on your bill, none of that money stays at the cooperative; it is all returned to the power supplier. The charge is assessed based on your monthly kilowatt-hour usage as measured by your meter.
Distribution KWH Charge
This is the cost of providing and maintaining a distribution system that delivers electricity from the substation to homes and businesses. The charge is assessed based on your monthly kilowatt-hour usage as measured by your meter.
Power Cost Adjustment
This represents the difference between what we budget for power supply and what we actually pay to our supplier. A number of factors can affect what we ultimately pay, including changes in fuel costs and the market prices of electricity. Like the Energy KWH Charge, all money generated in this line is returned to the power supplier.
Michigan Public Act 295 Mandates: Electric Energy Optimization Surcharge
This is part of the Clean, Renewable and Energy Efficient Act that was passed by the Michigan legislature in the fall of 2008. The act requires all Michigan utilities to implement Energy Optimization programs for their customers. The programs are designed to reduce the energy use of participating customers by encouraging investment in energy efficiency measures. The surcharge is mandated by state law and all regulated utilities are required to implement the charge and programs.
Your bill also includes the following statement: "MPSC estimates EO will create average residential savings of $2.92 per month." Each customer will experience differing levels of savings, depending on which of the Energy Optimization (EO) programs they choose to implement. The Michigan Public Service Commission (MPSC) reviewed all of the programs and determined that, on average, electric utility customers in Michigan could expect to save $2.92 per month if they implemented applicable EO programs. Obviously not every program is applicable to every customer, but the MPSC wants to encourage electric utility customers to take advantage of the programs that have been developed and implemented so that they can realize the savings.
Visit our Energy Optimization page for more information.
Your bill may include other components, based on the products and services that you utilize. If you have questions about your bill, please contact us.
