SRP Bill Terms And How To Read A Residential Electrical Bill


It may look ridiculous but the number of people who don’t know how to read the SRP energy bill is alarming. It is even more ridiculous that a lot of people don’t understand the energy bill terms used. Knowing these terms is essential for every homeowner. Here are some common and yet important terms that you need to know.


Monthly service charge

The monthly service charge is a fixed charge that you pay every month. The charge covers the collections, the costs for billing, customer services metering and distribution facilities.

Energy Charge

The energy charge is normally in kWh and it is a variable charge that covers the cost to produce or buy the electricity consumed during the period of the billing service. It also covers the cost of supplying the essential transmission, distribution and generation capacity to meet the needs of the customer. The actual charge to the customer will vary from month to month depending on the amount of energy used. However, you can put in measures to How to lower electric bill.

Demand

Demand is normally expressed as kW and it is a measure of the maximum rate at which power is being used during a particular billing period.

Demand Charge

The demand charge is expressed as kW and is the charge that covers some of the distribution and supply costs in order to meet the energy needs of the customer. The transmission system may include high voltage lines and towers that transmit electric energy from power plants to the distribution systems.
Underground power lines, power lines of lower voltage and poles are examples of distribution systems. Transformers connecting your service to the energy transmission system is also part of the distribution system. The actual SRP electric bill will vary from month to month and this will depend on your usage. 
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