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Energy Answers · Rising power costs

Your power bill is going up. Start by finding out why.

Five steps to separate billing errors, demand peaks, and changing rates, then decide what deserves attention at your facility.

You will leave withA clearer explanation of your bill and a short list of questions to test against your actual data.

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  1. 01

    Check what you are being billed for.

    A bill review starts with accounts, meter details, and the rate schedule, not a new equipment proposal.

    Ask at your facility
    Can we trace the charges on this bill back to the applicable rate schedule?
    You should end up with
    List your accounts, rate schedules, and unexplained changes.
    Read the written decision The part you want is How the Utility Bill Audit Process Works Step by Step.
    Other ways to take this step
  2. 02

    Separate electricity used from the peak you created.

    Using fewer kilowatt-hours and lowering billed demand are different jobs.

    Ask at your facility
    Did our usage rise, our peak rise, or both?
    You should end up with
    Identify energy charges, demand charges, and the peak interval.
    Watch the episode The part you want is What Demand Charges Actually Are.
    Other ways to take this step
  3. 03

    Find out whether an old peak is still following you.

    When this appliesIf your tariff has no ratchet, continue to step 4.

    A historical peak may set a billing floor even after operations change.

    Ask at your facility
    Is billed demand higher than metered demand, and what rule explains the gap?
    You should end up with
    Record the ratchet percentage, look-back period, and relevant peak.
    Read the written decision The part you want is Variations: The Type of Ratchet Shapes the Pattern of Your Pain.
    Other ways to take this step
  4. 04

    Separate rate movement from operational changes.

    A fuel rider can change the bill even when operations look similar.

    Ask at your facility
    What changed in the rider rate, and what changed in purchased kilowatt-hours?
    You should end up with
    Track the rider rate and charge beside monthly usage.
    Read the written decision The part you want is Five Misconceptions Indiana Operators Have About Fuel Adjustment Charges.
    Other ways to take this step
  5. 05

    Choose the first lever worth investigating.

    Start with your rate, interval data, and operating constraints before comparing hardware.

    Ask at your facility
    Which loads can move without disrupting the work this facility exists to do?
    You should end up with
    A candidate peak-control action and the data needed to evaluate it.
    Read the written decision The part you want is The Three Levers for Demand Charge Peak Shaving.
    Other ways to take this step

Bring this to your team

What you should be holding at the end of the five steps.

  1. 01List your accounts, rate schedules, and unexplained changes.
  2. 02Identify energy charges, demand charges, and the peak interval.
  3. 03Record the ratchet percentage, look-back period, and relevant peak.
  4. 04Track the rider rate and charge beside monthly usage.
  5. 05A candidate peak-control action and the data needed to evaluate it.

Now put your own bills behind the answers.

The Energy Decision Blueprint

This path explains the moving parts. The Energy Decision Blueprint applies them to your facility, your rate, and the decision you need to make.

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