Beware of Spikes in Electricity Bill
Most of us tend to use more electricity during the summer months when it’s hot and we need air conditioning at full capacity . However, it is worth understanding how your electricity company charges you. Many of them charge more per kilowatt depending on how and when you use your electricity.
Arizona’s energy company, Arizona Public Service, made headlines recently for skyrocketing prices, but they are not alone. Many electric companies charge more during peak hours. Part of the pricing of APS is based on the maximum energy consumption of a consumer in one hour during peak hours, which is frustrating for many customers. Other utility providers use different methods. In Los Angeles, for example, you are charged a higher fee per kilowatt when you reach a certain usage threshold. They call this tiered pricing (I’ve detailed my own electricity bill here ).
We’ve touched on this before and there are several solutions to combat this pricing. You can run your vehicle at night, for example during cheaper off-peak hours. Of course, it’s also best to make sure your home is as energy efficient as possible .
In general, however, it is helpful to just know your electric company’s pricing model based on where you live. The difference in prices during peak hours can be pennies, but when we talk about kilowatts, these pennies add up. For more details please follow the link below.
Uber, but for the energy sector: soaring utility prices threatens summer chill | NPR