Thursday, October 21, 2010

Residential electricity rates

Residential electricity rates are difficult to understand. It takes a PhD to read a utility bill. Rates are based on a tier system, similar to a progressive tax system's tax bracket. The more juice you use, the higher rates will be. There is a baseline usage whose rate is lowest.

For a baseline usage of 12.1 kWh per day and PG&E's Electric Schedule E-1 published are used in the following plots. .

Rate per kWh in tabular form



Monthly payment of electricity bill.


Cost breakdown
Now that you have paid your electricity bill, how does that cost breakdown? For the Tier 1 rate, the power plants get about 5 cents out of a total 12 cents. PG&E which is responsible for distribution and transmission gets about 5 cents. The rest of 2 cents pay for all kinds of fees.

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