Understanding Your Bill
Two main charges make up your utility bill: the cost of energy consumed and the cost of delivering this energy. Your energy charge is based on how much of the actual commodity is used. For the most part, delivery charges are fixed and are intended to cover the cost of installing, operating and maintaining the infrastructure used to transmit the energy to each consumer's residence. This infrastructure includes the poles, wires and transformers in the case of electricity.
Delivery company rates are regulated by the Alberta utilities Commission (AUC), an independent, quasi-judicial agency associated with Alberta Energy. The AUC holds rate hearings to ensure that customers receive safe and reliable service at a reasonable cost.
This example identifies the various line items and charges the average consumer may find on an electricity bill. Click on the blue words for a definition of each term.
Name: Your Name Account Number A000000000 Address:
Your Town AB T0H 0H0
Statement Date: March 28, 2007
SITE ID The site I.D. is the equivalent of your home's street address, but for your meter. Utility companies use this number to identify and bill your home for energy used. It is important to make sure this number is correct when signing a contract because it will ensure you will be billed for the correct meter and location. 002000000000
Billing period: Feb 16 to Mar 19, 2007
Meter reading provided by wires service provider
Meter This is the number taken off the face of the electric meter that serves your site.
Click heading for related links. 1234567890
Reading These numbers are taken off the dials of your electric meter. They are used to determine your energy consumption during the billing period.
on Mar 19 (Actual)
46707.00 Reading on Feb 15 (Estimate) 45991.00 716.00 kWh
ENERGY CHARGES This is the cost of electric energy you have used in a billing period. These charges are expressed in cents per kilowatt-hour (¢/kWh). Provided by energy retailer New charges based on 716.00 kWh Mar 1 - Mar 19 253.00 kWh at X.XXX¢/kWh $XX.XX Feb 16-Feb 28 463.00 kWh at X.XXX¢/kWh XX.XX Administration charge This fee covers the costs related to billing you for electricity and providing customer service. X.XX Cancel/rebill This means the initial charges for the referenced billing period are being cancelled and new charges are being billed. There are a number of reasons why previous billed charges may be cancelled: for example, corrected meter reading or the replacement of estimated read with an actual read. Feb 1 - Feb 15 -133.48 kWh at X.XXX¢/kWh XX.XX CR Feb 1 - Feb 15 138.07 kWh at X.XXX¢/kWh XX.XX Jan 18-Jan 31 -118.77 kWh at X.XXX¢/kWh XX.XX CR Jan 18-Jan 31 122.87 kWh at X.XXX¢/kWh XX.XX Subtotal of electric charges $XX.XX
DELIVERY CHARGES These are the regulated cost of delivering electricity to consumers. Provided by your wires services provider Consumption: 716.00 kWh New charges Distribution charge The cost of building, operating and maintaining the local distribution system. $XX.XX Transmission charge The cost of building, operating and maintaining the provincial power grid. X.XX Rate riders A rider is a temporary credit or charge approved by the regulator. X.XX CR Local access fee The electric company, on behalf of local government, collects this fee to access municipal land to construct, maintain and operate distribution systems serving the residents of the city, town, or village. X.XX Jan 18 - Feb 15/07 -252.25 kWh (Cancel) XX.XX CR Jan 18 - Feb 15/07 260.94 kWh (Rebill) XX.XX Subtotal of Delivery Charges $XX.XX GST The five per cent GST calculation is based on the total cost on your bill. at 5% on $XX.XX X.XX Your total electricity charges $XX.XX
SUMMARY OF YOUR ACCOUNT Amount of last bill $XXX.XX Last payment processed $XXX.XX Balance forward $X.XX New electricity charges $XX.XX Total payment now due $XX.XX