1. ANALYZING YOUR ELECTRIC BILL Bob Walker Met-Ed November 7, 2007

2. Session Topics Basic charges Demand –What is it? –Why bill for it? Rate components Reducing your bill –Shopping –Energy conservation & Load management –Rate Options Seasonal Time-of-Day

3. Basic Charges Energy (kwh) Charge Demand (kw) Charge

4. What is DEMAND??? Highest amount of electricity used during a specified interval – “peak load” Measured in kw (kwh/hour) Charged for highest in billing period

5. Why Charge for Demand?? Accounts for time-varying nature of customer loads (loads are not constant) Higher demand requires larger utility facilities – wire, transformers, etc. Allocates fixed costs fairly among customers

8. Rate Components Distribution Charge Transition Charge Transmission Charge Generation Charge

9. Met-Ed Rate GS Medium Demand (kw)Energy (kwh) Distribution$3.82 $0.00057 Transmission 0.00 0.01252 Transition 3.14 0.00000 Generation 0.00 0.04869 TOTAL$6.96 $0.06178

13. REDUCING YOUR ELECTRIC BILL

14. Shopping With deregulation customers may buy their supply (Transmission & Generation) from a third party provider. For a customer to reduce their bill their supplier’s cost must be less than the utility’s Price to Compare. Price to Compare = Transmission kwh charge + Generation kwh charge For Rate GS Medium, Price to Compare = $.01252 +.04869 = $.06121

15. Rate Caps Deregulation established caps for the various rate components Generation cap for PPL will expire 12/31/2009 Generation cap for Met-Ed will expire 12/31/2010 With the cap, Met-Ed generation + transmission charges are approximately $0.06 per kwh Average market price is over $.08 per kwh No Met-Ed customers are shopping now – this will change in 2011 When utility generation rates increase there will be opportunities for savings through shopping.

16. Energy Conservation & Load Management Energy conservation is reducing the amount of kwh you use (turning off lights) Load management is reducing your demand (reducing equipment wattage, rescheduling uses) For every 100 kwh reduced you save 100 x $0.06178 = $6.18 For every 1 kw reduced you save $6.96

17. Rate Options Time-of-Day – could provide savings if highest demand occurs during off-peak hours

19. Rate Options Seasonal – cost is higher in summer, lower non-summer For Met-Ed Rate GS Medium: Summer Demand = $13.40/kw Non-Summer Demand = $4.79/kw Standard Demand = $6.96/kw Summer Energy = $0.06823/kwh Non-Summer Energy = $0.06110/kwh Standard Energy = $0.06178/kwh Summer months are June, July, August & September

20. Contact you utility for other rate options that might benefit you.