Your Bill Defined

Rates versus Fuel Cost Adjustment

Each quarter TVA implements a Fuel Cost Adjustment (FCA) that can fluctuate with TVAís fuel and purchased power costs. Therefore, electric rates may increase or decrease slightly based on the amount TVA pays for fuel and purchased power. If you are a commercial or industrial customer and have questions regarding the FCA, please contact Marketing at (423)952-5142.

Availability Fee

The availability fee is a fixed monthly charge designed to evenly distribute costs JCPB incurs when providing electric service to customers. Examples of charges incurred are: meter reading, maintaining customer records, capital and maintenance costs, etc. In other words, whether customers use electricity or not it costs to provide electric service to each and every customer. All customers (i.e. residential, commercial, and industrial) are charged an availability fee.

kWh

Energy is measured in kilowatt hours (kWhs). All electrically driven equipment is rated in watts. Wattage divided by 1,000 equals kilowatts (kW). The use of kW over time equals kWhs.

For example, a five horsepower (HP) motor uses about 3,730 watts of power, or 3.73 kW (3,730 HP / 1,000 = 3.73 kW). If you used this motor for two hours, it would use 7.46 kWh (3.73 kw x 2 hours = 7.46 kWhs). Further consideration of this example, might lead one to compare kWh usage during a billing cycle to the trip odometer on your car. If you drove 40 miles today and 50 miles tomorrow, the trip odometer would register 90 miles. Likewise, kWhs are cumulative during a billing cycle.

kW (Demand)

Demand (kW) is measured per a demand meter. A demand meter records the highest instantaneous usage during a 30-minute interval during a 30-day billing cycle.

If kWhs may be compared to the trip odometer, then letís compare kW, or demand, to the speedometer. If you are traveling 50 miles per hour, you are drawing a certain level of power from your carís engine. If you increase your speed to 60 miles per hour, then you accelerate and draw even more power from your carís engine. The electric meter similarly measures how much power you use off the electric system.

The power being registered is constantly moving. JCPB demand meters use a 30-minute demand interval. This means that the kW being used must be used for 30 minutes before being fully registered on the meter. If the kW load was only energized for 10 minutes, then only one third of the load would be registered.

At the end of a demand interval the demand register resets, and it begins to measure the next 30 minute demand interval. All demand intervals for the billing period are stored in the meterís memory. At the end of the billing cycle, the highest 30-minute demand interval recorded during the billing cycle is provided by the meter. Your account will be billed for the ďpeak demandĒ for the billing cycle. The meter will then reset the demand meter for the next billing cycle.

Certain electric loads inside your facility will run much longer than 30 minutes, such as inside lighting, evaporative coolers, computers, etc. This comprises your base building load and will show up on the demand meter. However, intermittent load such as certain office equipment, large process specific motor loads, refrigeration equipment (if working properly), etc. normally does not operate for a full 30 minutes and does not fully register on the demand meter. There is much potential for energy savings provided the intermittent load can be efficiently controlled to minimize energy usage.

For additional information or to schedule an energy audit contact one of our Key Account Representatives at 423-952-5142 or email.