
Electric Department
502 Carroll, Ames, IA 50010
Customer Service
515 Clark
Ave., Ames, IA 50010
Phone:
(515) 239-5120
* * * * *
How to
Calculate Your Electric Costs
General Power (Commercial) Rate
Residential Rate
The Large Power rate is available to any non-residential customer whose consumption in any billing period exceeds 10,000 kWh. This rate shall be mandatory for any non-residential customer whose metered demand at any time exceeds 50 Kw. Any customer for whom the Large Power rate became mandatory, who subsequently has metered demand of less than 50 Kw for 12 consecutive months, will again become an optional Large Power customer with a choice between the General Power and Large Power rates. Any customer for whom the Large Power rate is optional shall not switch rates more than once in a period of 12 months. Any customer on the Large Power rate who has a metered demand of less than 50 Kw, and a consumption of less than 10,000 kWh for 12 consecutive months, shall be changed to the General Power rate.
The Large Power electric rate is made up of four components: the customer charge, the demand charge, the energy charge and the energy cost adjustment (ECA).
Customer Charge - The service charge is a fixed fee
each month and is also the minimum bill amount. The monthly customer charge for Large
Power customers is $41.40.
Demand Charge - The billing demand charge shall be the greater of; a. the current
month's demand; b. 75% of the high demand in the previous 4 summer months; or c. 60% of
the high demand in the previous 11 months; d. provided that the demand used for billing
shall in no case be less than 15 Kw after discounts. The rate is broken up into three
blocks with the rate per kilowatt declining with each higher block of consumption. The
rate per kilowatt (Kw) is also different for summer and winter:
|
KW Demand |
Summer | Winter |
| First 50 kw | $4.399 per Kw | $3.157 per Kw |
| Next 100 kw | $3.985 per Kw | $2.743 per Kw |
| Over 150 Kw | $3.571 per Kw | $2.329 per Kw |
Energy Charge - The energy charge is the amount you pay for each kilowatt hour (kWh) that you use and is based on the billing demand from above. The rate is broken up into three blocks with the rate per kWh declining with each higher block of consumption. The final billing demand is taken times 200 to arrive at the first kWh energy billing block. These kWh's are then subtracted from the monthly total. The billing demand is taken times 200 again and this amount of kWh is billed at the next lower block. This second amount of kWh's is subtracted from our previous remaining kWh total and any remaining kWh's are billed at the lowest price block. The rate per kWh is also different for summer and winter:
|
kWh Energy |
Summer | Winter |
| First 200 KWh | 5.69¢ per kWh | 4.86¢ per kWh |
| Next 200 KWh | 3.93¢ per kWh | 3.83¢ per kWh |
| Over 400 KWh | 3.62¢ per kWh | 3.42¢ per kWh |
The summer rate is in effect for utility bills that are
mailed on or between July 1 and October 31. This means that the summer rate would normally
apply to electricity consumed from June through September. The remaining eight months are
billed at the winter rate.
Energy Cost
Adjustment (ECA) - The ECA is a component that allows the utility to reflect
fluctuations in the cost of fuel for the power plant without frequently changing the
standard energy charges shown above. When rates were set in 1987, a base fuel
cost was projected. The ECA is simply the difference between actual fuel costs for the
past twelve months and the projected base fuel cost. Contracts for coal have
increased and this is reflected in the current ECA. For the month of
January, 2008 the ECA was $.0169per kWh.
If an industry consumed 75,000 KWh of energy and 160 Kw of billing demand during the month of May, the electric cost would be calculated using the winter rate from above:
| Customer Charge | $ 41.40 |
| First 50 Kw X $3.157 | $ 157.85 |
| Next 100 Kw X $2.743 | $ 274.30 |
| Remaining 10 Kw X $2.329 | $ 23.29 |
| First 200
hours use of KW
billing demand (160 KW X 200 = 32,000 kWh X $.0486) |
$1,555.20 |
| Next 200
hours use of KW
billing demand (160 KW X 200 = 32,000 kWh X $.0383) |
$1,225.60 |
| Remaining kWh use (75,000 total kWh - 64,000 kWh from first two blocks = 11,000 kWh remaining X $.0342) |
$ 376.20 |
| ECA = 75,000 KWh X $.0169 | $ 1267.50 |
| Total Cost: | $ 4,921.34 |