Do you pay 'tiered rates' for you power?

[PowerEngineer]

The primary reason for tiered rates is that your utility's regulating body likes them.


Here are a couple of their reasons:

• Lower rates for the first tier gives a break to many of the less affluent customers who need affordable bills for lights/refrigeration (no air conditioning, etc.)
• Higher rates for subsequent tiers encourage more prolific consumers to consider investing in conservation measures (e.g. more insulation, higher temperature settings on air conditioning, etc.) that help defer costs of new power plants and transmission lines.

Also shown on guyver01's bill are power/capacity cost adjustments, which are tied to the utility's actual costs of providing service. Certain assumptions on power costs go into the utility's rate structure (e.g. the amount of run-off from winter snow determines how much hydro power is produced, and the cost of fuels). Many utilities are asking for rate structures that include ways of promptly passing on the costs (or savings) to customers when the actual power costs are different from what was assumed.

 

[SSSnail]

Wait, so you're against tiered rated water and power, but you're fine with ISP's tiers? What a strange specimen you are.

 

[iGas]

The primary reason for tiered rates is that your utility's regulating body likes them.


Here are a couple of their reasons:

• Lower rates for the first tier gives a break to many of the less affluent customers who need affordable bills for lights/refrigeration (no air conditioning, etc.)
• Higher rates for subsequent tiers encourage more prolific consumers to consider investing in conservation measures (e.g. more insulation, higher temperature settings on air conditioning, etc.) that help defer costs of new power plants and transmission lines.

Also shown on guyver01's bill are power/capacity cost adjustments, which are tied to the utility's actual costs of providing service. Certain assumptions on power costs go into the utility's rate structure (e.g. the amount of run-off from winter snow determines how much hydro power is produced, and the cost of fuels). Many utilities are asking for rate structures that include ways of promptly passing on the costs (or savings) to customers when the actual power costs are different from what was assumed.

Engineers and suits are so far from the ground that they often missed basic and simple calculations. Don't forget the younger home buyer, newly weds, poorer people, and older couples that living on dwindling retirement funds hence they can't afford a new well insulated home or upgrade their dilapidated/poorly insulated house are the ones that truly need the break. While the middle class and beyond can afford to have new well insulated homes with high efficiency heat pumps and heat recovery units that lower their perceived energy consumptions.

 

[TraumaRN]

Engineers and suits are so far from the ground that they often missed basic and simple calculations. Don't forget the younger home buyer, newly weds, poorer people, and older couples that living on dwindling retirement funds hence they can't afford a new well insulated home or upgrade their dilapidated/poorly insulated house are the ones that truly need the break. While the middle class and beyond can afford to have new well insulated homes with high efficiency heat pumps and heat recovery units that lower their perceived energy consumptions.

I'm one of those newly wed middle class types. Me and the wife dropped $2500 for newer efficient kitchen appliances, $1000 on insulation, $300 on new storm doors. Plus probably another $300 or so for redoing caulking/sealant/weatherstripping/ceiling fans/CFLs. The house is noticeably less drafty, stays alot warmer/cooler depending on outside temp. Electricity we cut usage by close to 40%. AC bill decreased a good 30-40%. Have yet to see a winter yet but should be way way better. We were fortunate enough to be able to afford that. But you are right it sucks for people who can't. Heating and cooling alone can be a just giant money pit if your house is poorly insulated. Personally I'd like to see something better then the 30% tax credit. Because even with the tax credit it's going to take years to see a return on our investment

 

[rcpratt]

Tiered rates is the invention of the devil.

The first 500 kWh in the billing period are charged at the lower Tier 1 rate of 4.6 cents. Usage above 500 kWh in the billing period is charged at the higher Tier 2 rate of 9 cents.​

i hate xcel in colorado some times.

The only thing keeping me from being pissed... is i paid double under LIPA when i was back in NYC.

That's $0.09134/kWh before you add in the flat service charges.

 

[sdifox]

We are on time based Tiers

http://www.ontario-hydro.com/index.php?page=current_rates

 

[Vette73]

I like tiers. Makes people actually think about doing very basic things to their house like insualtion, fixing leaky windows/doors, etc...

Same with water. If your toilet has a small leak then it may not be a hugh issue and many woudl ignore. But if you go over into a higher tier I bet things like leaky toilets, dripy faucets, etc... would get looked at much quicker.


Poeple always say they don;t want to be forced to do things. So tiers are the inbetween. You can have little insualtion in your attic or a leaky toilet if you like but you will pay for it.

 

[NoCreativity]

first 17kWh/day $.06726/kWh
additional kWh $.08136/kWh

If you hook your AC up to interuptable service, that is $.05853/kWh

There are also service charges and the $.04XXX/kWh distribution charge.