Residential Rate Schedules

As shown in Figure 3-1, there are many residential users, but each is a relatively small consumer. A typical residential bill includes an administrative/customer charge, an energy charge which is large enough to cover both the actual energy charge and an implicit demand charge, and a fuel adjustment charge. Residential rates do not usually include an explicit demand charge because the individual demand is relatively inconsequential and expensive to meter. Standard residential rate schedule

Figure 3-2 presents a typical monthly rate schedule for a residential customer. Low-use residential rate schedule

A typical low-use residential service rate is shown in Figure 3-3. This schedule, which is an attempt to meet the needs of those on fixed incomes, is used for customers whose monthly consumption never exceeds 500 kWh. In addition, it cannot exceed 400 kWh more than twice a year. This rate is sometimes referred to as a lifeline rate. Residential rate schedules to control peak uses

Although individual residential demand is small, collectively residential users place a peak demand burden on the utility system because the majority of them use their electricity at the same times of the day during the same months of the year. Some utilities charge more for energy during peaking months in an attempt to solve this problem. Many utilities

Typical schedule bills for:

Customer Class Comments

Consumption (kWh)

Demand (kW)

Power factor (kVAR)

1. Residential Small user but large numbers of them


2. Commercial Small to moderate user;

relatively large numbers


3. Small industrial Small to moderate user;

fewer customers



4. Large industrial Large user with low priority; typically, only a few customers in this class, but they consume a large percentage of the electricity produced.



Generalized breakdown of electric rate schedule components.

Customer charge:


Energy Charge:

All kWh @ 6.972 c/kWh

Fuel adjustment:

(A formula is provided by the utility to calculate the fuel adjustment charge each month. It is rather complex and will not be covered here.)

Figure 3-2. Typical residential rate schedule.

Customer charge:


Energy Charge:

5.865 c/kWh

Fuel adjustment:

(A formula is provided for calculating this charge.)

Figure 3-3. Low-use residential schedule.

(Courtesy of Oklahoma Gas and Electric Company)

have an optional time-of-day or time-of-use rate which is supposed to help alleviate the daily peaking problem by charging customers more for electric use during these peak periods. A number of utilities also have a load management program to control customers' appliances.

Figure 3-4 provides examples of a Florida utility's residential demand profile over a given 24-hour period during the weekdays. Figure 34 (a) shows the residential winter peak demand profile. This utility experiences one large peak around 9:00 a.m. and another somewhat smaller

Figure 3-4 (a)

peak near 9:00 p.m. The first peak occurs when people get up in the morning and start using electricity. They all turn up their electric heat, cook breakfast, take a shower, and dry their hair at about the same time on weekday mornings. Then in the evening, they all come home from work, start cooking dinner, turn the heat back up (or use it more because nights are colder) and turn on the TV set at about the same time. Figure 3-4 (b) shows the residential summer peak demand profile for the same utility.

• Seasonal use rate schedule. Figure 3-5 presents a residential rate schedule where the season of use is a factor in the rate structure. This utility has chosen to attack its residential peaking problem by charging more for electricity consumed in the summer months when the highest peaks occur.

Customer charge:


Energy Charge:

On-peak season (June through October)

All kWh @ 7.728i/kWh

Off-peak season (November through May)

First 600 kWh @ 7.728i/kWh

All additional kWh @ 3.898i/kWh

Fuel adjustment:

(Calculated by a formula provided by the utility.)

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