Have you ever shopped for groceries and made what
you thought was a thrifty purchase, only to later discover that you did
not receive the discounted sale price? If you are like most people you
might say to yourself "how could they mess up something so simple as
the price of a gallon of milk or a loaf of bread". If you are a
hard-core synic you might even be thinking that you have been
deliberately cheated! The point is, as consumers we have all been
victims of honest mistakes even with the most routine purchases.
Now lets look at the steps needed to generate a
proper utility bill. For sake of discussion we will focus on electric
bills, but the same or similar processes apply to natural gas, water,
sewer, phone, propane, fuel oil, refuse, etc.
Electric bills are calculated in accordance with
tariffs filed by your local utility and approved by your
state or local utility regulator. These tariffs are a collection of
rules, rate schedules and riders that can change monthly, quarterly,
semi-annually and annually. Furthermore, you may be eligible to have
your bill calculated on one of several rate schedules, with each
producing drastically different results for the same usage. At this
point I hope you see the difference in complexity between your electric
bill and our grocery bill analogy. If we drill further into your
electric rate schedule, we are likely to find that it is calculated
based on factors such as your overall
energy use, the peak power demand during a month, the reactive power
consumed, and the time of day, week and season that you consumed your
electricity. Complicating the matter further is the fact that each of
the parameters mentioned is also likely to have a tiered rate structure
where the price changes at discrete levels of usage. If you thought it
was not possible for a utility company to make a billing error, maybe
its time to think again. Contact Independent
Energy Consultants to discuss how we can give you the
assurance you deserve.
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