Your “Rate to Compare” Hasn’t Changed But That Doesn’t Mean Your Rates Didn’t Increase
PEPCO customers in Maryland have been expecting a rate increase since the PEPCO merger with Exelon announced in March 2016, but if you reside in the PEPCO service territory in Maryland and Washington, DC, how do you calculate your rate increase?
If your “Rate to Compare” hasn’t changed, or even if it decreased, then has the worst passed? No. Scroll down to the bottom of this post to see how much the rate is increasing. But, to understand where those numbers are hidden, read the following step by step explanation of how to calculate your true charges.
Have you checked those other line items on your bill? Aren’t they included in that “Rate to Compare?” Unfortunately, the “Rate to Compare” is just the beginning.
Distribution charges can add over 50% to your total charges
Do the following quick calculation: Take your total usage in kWh and multiple it by PEPCO’s Rate to Compare.
How does that compare to your total electric charges from your bill?
1186 kWh x $ 0.0878 = $ 104.13
But the Total Electric Charges are $ 94.89 higher than the Rate to Compare would lead you to believe. The Distribution Services portion of the bill accounts for the difference:
You can calculate the “rate” for the Distribution Services by dividing the Total Electric Delivery Charges by the monthly kWh:
$ 93.54 / 1186 kWh = $ 0.07887 / kWh.
To be fair, the Customer Charge is always the same, no matter how much or how little energy you use in a particular month, so it isn’t really a part of the rate and should be subtracted prior to calculation. Therefore, the adjusted Electric Delivery Charges rate is:
$ 86.15 / 1186 kWh = $ 0.0726 / kWh
Your Rate is Almost Double the Rate to Compare!
So, your total rate is: Supply Rate + Transmission Rate + Distribution Services Rate = 7.26 + 8.78 = 16 cents / kWh
16 cents / kWh!
For comparison, rates from just last Spring were averaging about 14.2 cents / kWh.
That a 13% rate increase in less than a year!
How do you reduce your rates? How do you protect against future rate spikes?
Locking into a 12 month contract with a third-party energy supplier will not affect this kind of rate increase because it only reduces the supply rate on your bill, and only provides temporary relief because when the rate lock expires, you will jump right back to current PEPCO Supply rates or even higher, depending on your supplier.
However, you CAN reduce both your supply and distribution rates by going solar. And you can lock your rate in for 20 years! How?
SolarCity charges homeowners for the solar energy they get from their solar power systems, and not for the panels, installation, repairs, monitoring or maintenance, all of which are provided at no cost to the homeowner. In most cases, SolarCity is able to charge homeowners equal to or less than what they are currently paying for their power and lock their rates in for 20 years.
What is SolarCity’s Fixed 20 Year Rate?
Fill out this form to request a no cost, no obligation energy savings proposal for your home to find out how much lower our solar energy rate is.
(At least your name, email and phone number so we can contact you)
Taking a smoke break, or are you going to fill out that form?
Zhdanovskaya Coal Miners, Ukraine, 1992 © Shepard Sherbell
Image links back to source: Notes on Politics, Theory & Photography – a recommended blog.