Ames Electric Department

Electric Rates

How to Calculate Your Electric Rate (Examples):
Residential Rate
Small Commercial Rate
Large Commercial Rate
Industrial Rate

Electric Rates                                 

Rates are made up of four basic components: The residential and small commercial electric rates are made up of the Service Charge, the Energy Charge (kWh) and the Energy Cost Adjustment (ECA).  Large commercial and industrial rates also have a Demand Charge (kW).  

Service Charge - The service charge is a fixed fee each month and is also the minimum bill amount. It covers the administrative costs associated with meter reading and bill processing.

Energy Charge (kWh) - The energy charge is the amount you pay for each kilowatt hour (kWh) that you use.  You will notice the cost per kilowatt hour is a bit higher during the summer.  This is because it costs more to product electricity in the summer. 

For residential customers the summer rate is flat meaning you pay the same for all kilowatt hours you use.  During the winter the rate is broken up into three blocks with the cost per kilowatt hour declining the more you use. 

For commercial and industrial customers both summer and winter kilowatt hours are broken up into three cost declining blocks. 

Energy Cost Adjustment (ECA) - The Energy Cost Adjustment (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. The ECA is simply the difference between actual fuel costs for the past twelve months and the projected base fuel cost. For the month of January, 2008 the ECA was $.0169per kWh.

Demand Charge (kW) - The demand charge reflects the cost for the highest average instantaneous amount of power demanded by a customer recorded during any 15 minute time period within the billing month measured in kilowatts (kW). It represents the greatest amount of electricity the customer uses at any one time during the month. 

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.

More rate information is available in Chapter 28 of the Ames Municipal Code which can be found here.

Residential Rates     

The residential electric rate is available for all single-phase domestic uses in separately metered dwelling units that are intended for occupancy by a single family. This rate would apply to most owner or renter occupied housing where the electricity is metered separately for each unit.
 

	Winter Rates	Summer Rates
First 400 kWh	7.60¢ per kWh	8.25¢ per kWh
Next 600 kWh	6.37¢ per kWh	8.25¢ per kWh
Remaining kWh	6.04¢ per kWh	8.25¢ per kWh

Small Commercial Rates

The small commercial rate is available to all non-residential customers except those that qualify for another rate schedule.  It is intended for all single-phase, or three-phase, single metered facilities where the metered demand does not exceed 50 kW.
 

	Winter Rates	Summer Rates
First 2,000 kWh	7.15¢ per kWh	9.17¢ per kWh
Next 5,000 kWh	5.93¢ per kWh	7.83¢ per kWh
Remaining kWh	5.70¢ per kWh	7.60¢ per kWh

Large Commercial Rates

The large commercial rate is optional for any non-residential customer whose energy consumption in any billing period exceeds 10,000 kWh.  The large commercial rate is mandatory for any non-residential customer whose metered demand at any time exceeds 50 kW. 
 

	Winter Rates	Summer Rates
First 50 kW	$3.410 per kW	$4.751 per kW
Next 100 kW	$2.962 per kW	$4.304 per kW
Remaining kW	$2.515 per kW	$3.857 per kW

First 200 hrs use of billing demand	5.25¢ per kWh	6.15¢ per kWh
Next 200 hrs use of billing demand	4.14¢ per kWh	4.25¢ per kWh
Remaining kWh	3.69¢ per kWh	3.91¢ per kWh

Industrial Rates

The industrial rate is available to any non-residential customer who would otherwise qualify as a large commercial customer and is involved with manufacturing or industrial processing.  On a month-by-month basis, a qualified industrial customer will be charged the lower of bills calculated on the large commercial and industrial rates. 
 

	Winter Rates	Summer Rates
All kW	$2.515 per kW	$3.857 per kW

First 200 hrs use of billing demand	4.70¢ per kWh	5.48¢ per kWh
Next 200 hrs use of billing demand	3.57¢ per kWh	3.69¢ per kWh
Remaining kWh	3.24¢ per kWh	3.47¢ per kWh

How to Calculate Your Electric Costs - Residential

Residential Rates:  If a residence consumed 1050 kWh of electricity a month:

Winter - Residential (As of July 1, 2008)

Service Charge	$  5.00
First 400 kWh X $.0760	$30.40
Next 600 kWh X $.0637	$38.22
Remaining 50 kWh X $.0604	$  3.02
ECA=1,050 kWh X $.0169	$17.75
Total Cost:	$94.39

Summer -  Residential (As of July 1, 2008)

Service Charge	$  5.00
First 400 kWh X $.0825	$33.00
Next 600 kWh X $.0825	$49.50
Remaining 50 kWh X $.0825	$  4.13
ECA=1,050 kWh X $.0169	$17.75
Total Cost:	$109.38

How to Calculate Your Electric Costs - Small Commercial

Small Commercial rates:  If a small commercial customer consumed 10,500 kWh of electricity a month:

Winter - Small Commercial (As of July 1, 2008)

Service Charge	$    6.00
First 2,000 kWh X $.0715	$143.00
Next 5,000 kWh X $.0593	$296.50
Remaining 3500 kWh X $.057	$199.50
ECA=10,500 kWh X $.0169	$177.45
Total Cost:	$822.45

Summer - Small Commercial (As of July 1, 2008)

Service Charge	$    6.00
First 2,000 kWh X $.0917	$183.40
Next 5,000 kWh X $.0783	$391.50
Remaining 3500 kWh X $.0760	$266.00
ECA=10,500 kWh X $.0169	$177.45
Total Cost:	$1,024.35

How to Calculate Your Electric Costs - Large Commercial

Large Commercial rates:  If a large commercial customer consumed 75,000 kWh of electricity and had a demand of 160 kW:

Winter - Large Commercial (As of July 1, 2008)

Customer Charge	$     45.00
First 50 kW X $3.41	$   170.50
Next 100 kW X $2.962	$   296.20
Remaining w10 kW X $2.515	$     25.15
First 200 hours use of kW billing demand (160 kW X 200 = 32,000 kWh X $.0525)	$1,680.00
Next 200 hours use of kW billing demand (160 kW X 200 = 32,000 kWh X $.0414)	$1,324.80
Remaining kWh use (75,000 total kWh - 64,000 kWh from first two blocks = 11,000 kWh remaining X $.0369)	$   405.90
ECA = 75,000 kWh X $.0169	$1,267.50
Total Cost:	$5,215.05

Summer - Large Commercial (As of July 1, 2008)

Customer Charge	$     45.00
First 50 kW X $4.751	$   237.55
Next 100 kW X $4.304	$   430.40
Remaining 10 kW X $3.857	$     38.57
First 200 hours use of kW billing demand (160 kW X 200 = 32,000 kWh X $.0615)	$1,968.00
Next 200 hours use of kW billing demand (160 kW X 200 = 32,000 kWh X $.0425)	$1,360.00
Remaining kWh use (75,000 total kWh - 64,000 kWh from first two blocks = 11,000 kWh remaining X $.0391)	$   430.10
ECA = 75,000 kWh X $.0169	$1,267.50
Total Cost:	$5,777.12

How to Calculate Your Electric Costs - Industrial

Industrial Rates:  If an industrial customer consumed 175,000 kWh of electricity and had a demand of 260 kW:

Winter - Industrial (As of July 1, 2008)

Customer Charge	$   112.00
All kW X $2.515	$653.90
First 200 hours use of kW billing demand (260 kW X 200 = 52,000 kWh X $.0470)	$2,444.00
Next 200 hours use of kW billing demand (260 kW X 200 = 52,000 kWh X $.0357)	$1,856.40
Remaining kWh use (175,000 total kWh - 104,000 kWh from first two blocks = 71,000 kWh remaining X $.0324)	$2,300.40
ECA = 175,000 kWh X $.0169	$2,957.50
Total Cost:	$10,324.20

Summer - Industrial (As of July 1, 2008) 

Customer Charge	$   112.00
All kW X $3.857	$1,002.82
First 200 hours use of kW billing demand (260 kW X 200 = 52,000 kWh X $.0548)	$2,849.60
Next 200 hours use of kW billing demand (260 kW X 200 = 52,000 kWh X $.0369)	$1,918.80
Remaining kWh use (175,000 total kWh - 104,000 kWh from first two blocks = 71,000 kWh remaining X $.0347)	$2,463.70
ECA = 175,000 kWh X $.0169	$2,957.50
Total Cost:	$11,304.42