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Of course, with electricity demand falling â thanks in large part to the popularity of rooftop solar â power companies are using the fixed cost components of their billing systems to help cover their own fixed costs, while also compensating for lower usage by consumers.
Energy Charge: This charge covers the costs of providing and producing electricity that are not recovered through the basic charge. Customers are charged for the number of kilowatt-hours they use. Kilowatt-hours (kwh): A measure of energy that is equal to the amount of work done by 1,000 watts for one hour. Consumers are charged for electricity in cents per kilowatt-hour. Energy Charge â Baseline or Non-Baseline: Baseline rates are applicable only to separately metered residential rates.