The Cost Of Electricity In Your Household
Knowing the cost of Electricity will help businesses and cities to plan for future needs. On average in the U.S., residential energy users consume about 897 kilowatts per month, which again is then multiplied by the amount of electricity consumed to calculate a cost per kilowatt-hour. In addition to the cost of fuel and oil used for power generation, there are other factors such as tax incentives and federal programs that can significantly reduce a city or business power bill. The following are some ideas on how to compare costs of Electricity in different locations in your community.
Although deregulation has reduced the cost of Electricity
dramatically in many states, the best way to compare prices across the board is by purchasing an Energy Performance Certificate (EPC). Each state is required to calculate and document the electricity use in residential communities based on historical consumption. For this information, residential electricity rates are also required to be filed with the state auditor. Using an EPC as a guide gives you the ability to look at a larger city or business area, especially when comparing across different types of Electricity.
For example, a business in South Chicago
would need to calculate its annual average cost of electricity in different years to get a sense of its “cost of energy” (how much it costs in dollars per kwh produced over a year) across the board. However, South Chicago also has a large number of residential electricity users who use a great amount of Electricity. This fact alone may influence the way a business decides to compare its residential electricity rates.
The average cost of Electricity in deregulated states like Tennessee
is close to one-tenth of that found in regulated states like New York. The majority of households in New York pay more than ten times the national average for their electricity use. But in many areas of the Sun Belt, homes there pay less than half of the national average. There are many reasons why prices vary across different EPCs in different areas. Variations in EPC density and the way EPC’s are regulated also impact the cost of Electricity.
A home or business owner can use an Energy Performance Certificate
to see how much electricity they use in a month. They can then look at the cost of that electricity in a given year. If they see that they use more electricity in a month than their energy choice cost, then they may want to consider changing to a lower-cost EPC. Using a Home Energy Audit tool, which helps a consumer to chart their energy consumption over time, a homeowner can easily review the charts they make with their HPA and determine what factors are contributing to their high electricity bills, and then look for ways to improve their energy efficiency.
The average person turns to their local electricity supplier
to find ways to reduce their electricity costs. In many cases, they can make quite a difference to their monthly electricity costs by changing their appliances to more energy-efficient models. Many people also turn to the government for help in funding their home and business energy efficiency projects. In New York, the state government offers financial assistance to businesses and homeowners who install new, more energy-efficient appliances and offers incentives to energy-efficient building owners who take steps to reduce their building emissions.