Customers are grouped into classes according to expected energy and demand needs. Small commercial and residential customers pay only customer and energy charges. Large commercial and industrial customers pay customer, demand and energy charges.
The Structure of Electric Rates Electric rates are made up of 3 components including a customer service charge, a demand charge, and an energy charge.
Customer Charge The customer charge is a flat monthly charge which recovers fixed costs such as materials, operations and maintenance, and accounting costs. Demand Charge Demand charges are in the form of dollars per kilowatt. Demand charges recover the supplier's capital investment and substation costs associated with providing sufficient capacity to a customer, regardless of energy used.
Energy Charge The energy charge is in the form of cents per kilowatt-hour and is for purchased power and fuel. More Information For current rates and fees call 615-384-6770 during normal business hours.