What am I paying for?
Have you ever looked at your electric bill and asked yourself, “What does all this mean?”
As a not-for-proft electric cooperative, Coastal Electric Cooperative exists for the sole purpose of serving members. So while there may be no hidden fees for generating profits, deciphering your bill may still be a bit confusing. Hopefully, by this article’s end, you’ll gain a better understanding of what makes up your electric bill and what you’re paying for each month.
Let’s take it from the top.
If you receive a paper bill or e-bill, you’ll see some basic info near the top of your bill, such as your name, account number, telephone number, and address. You’ll also notice “rate” and “cycle,” both with a number below them.
Coastal Electric offers a variety of competitive rate schedules, such as rates for residential members, Advance Pay members, members using electric vehicle chargers, and industrial services.
A cycle is a group of meters that are read or billed at a certain time. Coastal Electric’s members comprise 20 billing cycles, meaning we bill on 20 days each month. Your cycle number simply identifies which cycle you are in.
Next, you’ll see the dates of service being billed, along with your last meter reading and the meter reading on the date of billing. If you subtract the “previous” reading from the “present,” the result will equal your kilowatt-hour (kWh) use for that time period.
Basically, a residential bill is the sum of a facilities charge, energy charge, and power cost adjustment.
Let’s talk about each.
You’ll see the facilities charge listed on the first line of the next section of your bill. Even before you use one kilowatt-hour of electricity, it costs money to bring power to your house, and that cost is shared equally among all Coastal Electric members. Together, everyone’s facilities charge covers right-of-way maintenance, equipment like poles and lines, interest, depreciation, insurance, labor, and even the cost of processing your bill. Those costs don’t change based on how much electricity you use. That’s why that $33 charge is the same every month.
One line down is the energy charge, which is based on how much electricity you used (measured in kWh). Next is the power cost adjustment, which can either be a charge or credit. Because the actual cost of generating electricity varies (usually fractions of a cent), and is caused by changes in fuel costs, how much of each fuel is used during that period, and wholesale market prices for electricity, the power cost adjustment helps track the actual cost of producing electricity without overcollecting or undercollecting revenue from members.
Fortunately, the member-elected board of directors has adopted methods for collecting revenue that smooth month-to-month fluctuations and provide rate stability for members.
Besides the three main components of facilities charge, energy charge, and power cost adjustment, you’ll see charges for state, local and, if applicable, franchise tax.
You may see other line items on your bill, depending on the services in which you participate, such as a Cooperative Solar kWh credit or charge, a charge for outdoor lighting, or a charge for Surge Guard protection. (To learn more about the services, visit www.CoastalElectric.Coop or call 800-421-2343.)
Members will also notice less than a dollar debit for “Operation Round Up contribution.” Operation Round Up (ORU) is a voluntary pro- gram through which Coastal Electric members allow their electric bills to be rounded up to the next dollar, with the change invested back into the community through the Coastal Electric Cooperative Foundation. ORU adds up to about $6 a year, on average.
The foundation’s mission is to help meet the food, health, safety, education, and shelter needs of residents in counties served by Coastal Electric. ORU dollars fund scholarships for local students, Bright Ideas grants for teachers, and the Washington Youth Tour leadership experience, among other causes.
Near the bottom of the bill, you’ll see information that may be valuable in managing your energy use, such as a comparison of how many kWh you used this billing period, the previous billing period, and the same billing period last year. You’ll see a chart showing your electricity use over the last 13 months, an average of how many kWh a day you used for the current billing period, and the average cost per day.
Finally, you’ll see a total amount due and a due date.
Now you know a little more about what goes into that total amount, but if you still have questions about your bill, please reach out to your Coastal Electric. We exist to serve you!