What to expect on your electric
bill and how to save money
If your house uses an electric heating system, it is important to understand your electric rate
and how to use electricity to help keep your utility bill as low as possible.
How electricity is measured
Electric consumption is measured in kilowatt-hours (kWh). A kilowatt (kW)
is 1,000 watts. One kWh is equivalent to using 1,000 watts of electricity
for one hour. For example: using ten 100-watt light bulbs for one hour equals
one kWh; using a 2,000-watt space heater for 30 minutes also equals one kWh.
Make sure you have the best rate
LPC has two residential electric rates:
The Residential Energy (RE) rate applies to all residential services
unless the RD rate is selected. On this rate, you pay for electricity consumed during the billing period as well as a standard monthly service charge to cover the cost of distribution power lines, transformer expense, substation expense, meter overhead and maintenance, meter reading, billing and customer service. These represent the fixed costs to provide service to each customer regardless of usage amounts. When you begin electric service you are automatically given the RE rate unless
you specifically request the RD rate.
The Residential Demand (RD) rate might be the better rate for you if you have an electric heating system. On this rate, you pay
for each kWh consumed and for each kW of electric demand.
There is also a standard monthly service charge to cover the cost of distribution power lines, transformer expense, substation expense, meter overhead and maintenance, meter reading, billing and customer service. These represent the fixed costs to provide service to each customer regardless of usage amounts.
E-mail LPC's Energy Specialist to request a free
rate comparison between costs using both rates for your
last 12 months of electric consumption.
Controlling electric demand to reduce your bill
The RD rate may be more cost-effective for all-electric homes if you know
how to control electric demand. Demand is a measurement of how fast electricity
is used at any point of time. Like a speedometer on a car, the electric meter
measures how fast you use electricity. The monthly kW demand charge is based
on the highest 15-minute period of electric use during each billing period.
Spreading out the use of high-demand heating elements and appliances over
time instead of using them all at once will keep your demand lower and help
reduce your electric bill. For example, turning off the oven before you start
the clothes dryer will reduce electric demand.
You can also control your electric demand with an electronic demand controller.
A demand controller automatically turns off certain appliances or heating
elements when the demand goes over a pre-set limit.