UNDERSTANDING YOUR ELECTRIC BILL
A GUIDE FOR BUSINESSES IN North Carolina
Duke Energy
550 South Tryon Street
Charlotte, NC 28202
www.duke-energy.com
120633 | 10/12
©2013 Duke Energy Corporation 12-1478LU 6/13
TABLE OF CONTENTS
INTRODUCTION
Introduction..................................................................................................................................................... 3
Understanding your electric bill is an important first step in lowering your energy costs. This guide provides you with
simple and direct explanations of the components of your electric bill and how it is calculated.
Basic Billing Concepts...................................................................................................................................... 4
Electric Energy and Demand........................................................................................................................ 4
Metering Electric Energy and Demand.......................................................................................................... 6
Understanding Electric Demand......................................................................................................................... 7
Integrated Demand..................................................................................................................................... 7
Many businesses have found they can lower their electric bills without impacting their operations. You may be able to
reduce your energy costs by revising operating schedules, replacing inefficient equipment or selecting a different rate
schedule. You can also take advantage of our energy efficiency and demand response programs:
• Smart $aver® Incentives help you lower the initial costs of purchasing energy efficient
equipment – to help control your operating costs and improve your bottom line.
• Our PowerShare® demand response program rewards your business for curtailing your
energy usage during periods of peak demand.
How to Read Your Bill Statement....................................................................................................................... 9
Pricing Options.............................................................................................................................................. 10
Glossary of Terms........................................................................................................................................... 12
2
• Energy Assessments can help you find ways to save energy, implement energy-saving
opportunities and reduce operating costs.
Please contact your Account Manager, or go to www.duke-energy.com for more information.
3
BASIC BILLING CONCEPTS
ELECTRIC ENERGY AND DEMAND
Duke Energy measures electricity usage in two ways.
The first measure is energy – which is the quantity of
electricity used, measured in kilowatt-hours (kWh),
like that shown on your billing statement at home. The
second measure is demand – which is the rate of energy
usage, measured in kilowatts (kW). The key to understanding your utility bill is to remember the difference
between electric energy and demand.
It may help to use the analogy of the odometer and
speedometer in a car. The amount of energy used
(kilowatt-hours) can be compared to miles driven, as
shown on the odometer. Energy demand (kilowatts) is
more like the speed or the rate at which the miles are
driven, as shown on the speedometer.
Most of Duke Energy’s business
and institutional customers in
North Carolina are billed according
to standard or time-of-use rates.
Service From: APR 23 to MAY 23 (30 Days)
100 watts
1,000 watts or 1 kilowatt
If this same one-kilowatt load is operated for one hour,
one kilowatt-hour (kWh) of electricity is used (1 kilowatt x
1 hour = 1 kilowatt-hour.) The kilowatt-hour is the most
common unit for measuring electrical energy usage.
¡K
ilowatts measure the demand, or rate of energy usage,
at any point in time.
¡K
ilowatt-hours measure the total amount of energy used.
Why does Duke Energy measure demand?
Odometer (kilowatt-hours)
Speedometer (kilowatts)
Example:
When you turn on an electric appliance, you create
demand for power. This instantaneous amount of
electricity demanded is measured in watts. A 100-watt
light bulb, for example, demands 100 watts of electricity
when it is energized. Ten 100-watt light bulbs would
demand 1,000 watts (10 x 100 = 1,000) or 1 kilowatt
(kW). So kilowatts measure the rate at which electricity
is used.
4
We need to plan for the maximum electrical demand that
could be expected from your business during the year.
How we plan to meet your energy needs is similar to your
decision process when you purchase a car. For example,
if you want a car that can go up to 90 miles per hour, it
needs to have a large enough engine.
Even if you never actually get the chance to drive that
fast, you plan for that possibility by buying a car with
capacity to do so. Similarly, Duke Energy installs facilities
to satisfy your highest energy demands, even though your
operations may reach that level only a few times a year.
We do this to provide adequate capacity for you on the
Duke Energy system (generating plants, and transmission
and distribution lines) and to ensure we properly size the
equipment necessary to serve your business.
Standard rates vary depending
on the customer’s demand for
electricity and type of usage
(e.g., for manufacturing purposes).
Optional time-of-use rates vary by
time of day, day of the week and
season. Prices are lower during
“off-peak” hours, on weekends and
during the winter months. (See
Pricing Options on page 11 for
more information on rates.)
Your bill may also show an outdoor
lighting fee, if you use that service.
PREVIOUS BILL
AMOUNT
$3,823.82
NEW CHARGES
(+)
$3,823.82
0.31
360
170
317
360
ADJUSTMENTS
(+ OR -)
$4,318.97
MULTIPLIER
0.00
1
05/21/2012
06/07/2012
Your next scheduled meter reading will occur between JUN 22 and JUN 17
PAYMENTS
(-)
METER
METER READINGS:
NUMBER PREVIOUS PRESENT
123456
0123456789
Account Number
Verification Code
Bill Date
Current Charges Past Due After
ACME ENTERPRISES
4980 CHURCH STREET
AMOUNT DUE
(=)
$0.00
TOTAL
USAGE
$4,318.97
RATE SCHEDULE
DESCRIPTION
AMOUNT
LGS-Large General Service
112 KW Actual Demand
112 KW Billing Demand
52,920 KWH Electricity Usage
Sales Tax
4,036.42
282.55
Amount Due
Electricity Usage
Total KWH
Days
AVG KWH per Day
AVG Cost per Day
This Month
Last Year
52,920
30
1,764
$134.55
N/A
N/A
N/A
N/A
4,318.97
Duke Energy offers a green power choice for customers
Standard Rate
Make a contributiion to the solution and support a cleaner environment with solar or wind power for
as little as $4 a month. All contributions are tax-free and tax-deductible. Find our how at
www.duke-energy.com/pace or call 1-800-943-7585.
ENTERPRISES
ForACME
Correspondence:
POBOX 1090 CHARLOTTE NC 28201-1090 Account Number
4980 CHURCH STREET DUKE PHONE: 800-653-5307 www.duke-energy.com
Verification Code
Bill Date
Current
Charges Past Due After
RETURN THIS PORTION WITH YOUR PAYMENT TO THE ADDRESS BELOW. THANK YOU FOR YOUR
BUSINESS
Service From: APR 10 to MAY 08 (28 Days)
PREVIOUS BILL
AMOUNT
PAYMENTS
(-)
123456
NEW CHARGES
(+)
MULTIPLIER
ADJUSTMENTS
(+ OR -)
TOTAL
USAGE
ACME ENTERPRISES
81.22
80
498081.22
CHURCH STREET
GREENWOOD SC 29646-4552
112.73
112.73
80
7521
7521
80
92527
92527
80
1092
312
PO BOX 70516
CHARLOTTE NC 28272-0516
Electricity Usage
Total KWH
Days
AVG KWH per Day
AVG Cost per Day
1
05/21/2012
06/04/2012
Your next scheduled meter reading will occur between JUN 08 and JUN 13
00000000000000000000000000000000000000000000
88
$1,859.91
$1,859.91
$2,647.83
METER
METER READINGS:
NUMBER PREVIOUS PRESENT
0123456789
This Month
Last Year
37,804
28
1,350
$90.06
43,004
32
1,344
$73.67
94
94
94
8,880
27,520
1,092
312
0 88
$768.39
RATE SCHEDULE
DESCRIPTION
Account Number
AMOUNT DUE
(=)
0 L
$3,416.22
AMOUNT
162241974B
OPT-Optional
Power Srv, TOU
Verification Code
5
Customer Charge
38.83
Amount Due
$4,318.97
On-Peak Actual Demand (Winter)
On-Peak
Billing Demand
831.63
Current Charges
Past Due After
06/07/2012
Off-Peak Actual Demand
On-Peak Energy (Winter)
567.63
Off-Peak Energy
919.47
FL - Flood Lighting
114.38
FL - Flood Lighting
49.80
Previous Months Adjustment
768.39
Municipal Fee
126.09
Total Amount Enclosed $
Amount Due
3,416.22
Visit us at www.duke-energy.com
KW
KW
KW
KWH
KWH
KWH
KWH
Time-of-Use rate
By measuring demand, Duke Energy can better ensure
that facilities are properly sized and that customers are
charged appropriately for their capacity needs. This helps
us to meet the energy needs of all our customers.
See the Glossary on Page 12 for definitions of terms appearing in bold.
5
Understanding ELECTRIC demand
INTEGRATED DEMAND
A demand meter measures the maximum 30-minute integrated kilowatt demand during the applicable billing
period. Since the demand measurement is “integrated,” or averaged over each 30-minute period during the billing
month, short periods of intense use, such as the start-up of a motor, may have minimal impact on the registered
demand. At the end of the billing period, Duke Energy records both the kilowatt-hour and the maximum 30-minute
integrated kilowatt demand readings from the meter. The demand register is then reset so it can measure maximum
demand for the following billing period.
Example: 30–Minute Integrated Demand Profile
This example illustrates how demand is calculated for an office with about 4,500 square feet of space, during the summer.
The meters used at residences and some small businesses register only electrical energy usage in kilowatt-hours
(kWh). The meter continuously measures the number of kWh used. At the end of each billing period (typically 30
days), a kWh reading is obtained from the meter. The previous month’s reading is then subtracted from the new
reading to determine kWh consumption. In some cases, the meter registers only a portion of the kWh used, and a
multiplier is used to determine actual usage. The multiplier, if applicable, is shown on your billing statement.
Meters at most businesses, however, measure both kilowatt-hours (energy) and kilowatts (demand). Kilowatts
measure the average rate at which kilowatt-hours are used during a certain time interval. The time interval used by
Duke Energy is 30 minutes.
Example:
If a 10-kW electrical load (like a commercial oven) is operated for 30 minutes, the demand register on the meter will
record 10 kW. During this same 30 minutes, the kWh register on the meter will record the use of 5 kilowatt-hours
(10 kW x ½ hour = 5 kWh). The demand register will retain this 10-kW demand unless higher demand occurs during
any subsequent 30-minute interval during the billing month.
40
35
30
Demand (kW)
metering electric energy and demand
For the first 10 minutes, the lights are on and the cooling system is running. During the next 5 minutes, the air
conditioning system cycles off, but several pieces of office equipment (computers, printers and a copy machine) are in
use. During the last 15 minutes, all the equipment is in use and the air conditioning system cycles on. The resulting
“integrated” demand for this 30-minute period is illustrated below.
25
20
15
10
5
0
0
5
10
15
20
25
30
Time (Minutes)
Demand (kW):
Lights & Cooling
Lights & Equipment
Lights, Equipment & Cooling
30 kW x 10 minutes
+
30 minutes
18 kW x 5 minutes
+
30 minutes
36 kW x 15 minutes
30 minutes
=
10 kW
3 kW
18 kW
= 31 kW
+
+
Even though the maximum demand was 36 kW, the “integrated” demand is only 31 kW for this 30-minute interval.
6
See the Glossary on Page 12 for definitions of terms appearing in bold.
7
how to read your bill statement
Example: 24-Hour Integrated Demand Profile
Continuing with our small-office example, demand is low in the early morning hours, since most of the equipment
is off. Maybe only a few exterior lights and the security system are on. As the business day begins, all the lights
and equipment are turned on and workers begin to arrive, producing a small peak in the early hours. Then, as the
outside temperature warms, the need for cooling inside the office increases, and the cooling system has to respond.
Note the highlighted area between 1 p.m. and 1:30 p.m. This represents the 30-minute interval discussed in
the previous example. Demand finally reaches a peak at about 4 p.m. Then, as business winds down, the outside
temperature cools and the cooling system begins to cycle on and off for longer intervals, demand begins to drop.
After the business closes down for the evening, demand returns to its minimal level.
35
Highest Demand of the Day
Demand During Each Interval
30-Minute Demand Interval
Quantity of Energy Consumed
30
For this example, the
maximum 30-minute
demand for the day
was 34 kW and the
total energy consumed
was 461 kWh.
Demand (kW)
25
20
15
10
5
0
1
2
3
4
5
6
7
8
9
10 11 12
1
2
3
4
5
6
7
8
9 10 11 12
Time (Hours)
1. Name and Address Information
This is the name on the account and
the address where service is provided.
2. Billing Period
Shows the dates of the previous and
present meter readings and the number
of days included in this billing period.
3. Billing Summary
Provides a quick summary of the most
recent charges, payments and total
amount due.
4. Billing Details
Lists the specific items included in the
calculation of the bill.
5. Energy Use and Cost Information
Compares the energy use and average
daily cost for this month with the same
billing period last year. If data for a
billing period is not available, “N/A”
will be shown.
1
2
Service From: APR 23 to MAY 23 (30 Days)
PREVIOUS BILL
AMOUNT
3
8. Payment Stub
Please return this portion of the bill
statement along with your payment
each month. Be sure the payment
address shows through the window of
the return envelope, and write in the
amount you are enclosing.
9. Phone Number
Duke Energy uses your phone number
to respond to your outage calls more
quickly. The phone number we have on
your account will be shown here each
month. If it is incorrect, please submit
corrections by following the instructions
on the back of the bill.
PAYMENTS
(-)
$3,823.82
123456
4
11
NEW CHARGES
(+)
0.31
360
170
317
360
$0.00
TOTAL
USAGE
Electricity Usage
Total KWH
Days
AVG KWH per Day
AVG Cost per Day
6
1
05/21/2012
06/07/2012
$4,318.97
RATE SCHEDULE
DESCRIPTION
AMOUNT
LGS-Large General Service
112 KW Actual Demand
112 KW Billing Demand
52,920 KWH Electricity Usage
Sales Tax
4,036.42
282.55
Amount Due
5
0123456789
AMOUNT DUE
(=)
ADJUSTMENTS
(+ OR -)
$4,318.97
MULTIPLIER
0.00
Account Number
Verification Code
Bill Date
Current Charges Past Due After
Your next scheduled meter reading will occur between JUN 22 and JUN 27
$3,823.82
METER
METER READINGS:
NUMBER PREVIOUS PRESENT
6. Messages
Check this section of the bill statement
each month along with any bill inserts for
important information from Duke Energy.
7. Customer Service
Contact us 24 hours a day, seven days a
week for information about your account
or any of our programs or services.
12
ACME ENTERPRISES
4980 CHURCH STREET
This Month
Last Year
52,920
30
1,764
$134.55
N/A
N/A
N/A
N/A
9
4,318.97
Our records indicate your telephone number is
123-456-7890. If this is incorrect, please follow the
instructions on the back of the bill.
A late payment charge of 1.5% will be added to any past
due utility balance not paid within 25 days of the bill date.
Duke Energy offers a green power choice for customers
Make a contribution to the solution and support a cleaner environment with solar or wind power
for as little as $4 a month. All contributions are tax-free and tax-deductible. Find our how at
www.duke-energy.com/pace or call 1-800-943-7585.
7
For Correspondence:
8
PO BOX 1090 CHARLOTTE NC 28201-1090
DUKE PHONE: 800-653-5307 www.duke-energy.com
RETURN THIS PORTION WITH YOUR PAYMENT TO THE ADDRESS BELOW. THANK YOU FOR YOUR BUSINESS
00000000000000000000000000000000000000000000 88
10
ACME ENTERPRISES
4980 CHURCH STREET
CHARLOTTE NC 28202-1234
PO BOX 70516
CHARLOTTE NC 28272-0516
0
88
0 L
Account Number
162241974B
Verification Code
5
Amount Due
$4,318.97
Current Charges Past Due After
Total Amount Enclosed
06/07/2012
$
Visit us at www.duke-energy.com
10. Amount Due
Shows the total amount due.
BILLING DEMAND
If you have demand readings indicated on your billing statement, you will notice two separate entries for demand.
One is actual demand (or that measured by the meter) and the other is billing demand. Your electric bill is based
on billing demand, which may not be the same as actual demand for the billing period. Billing demand is based on
several factors depending on the rate schedule.
11. Next Meter Reading
Shows the range of dates during which
the meter is scheduled to be read.
12. Account Information
Displays the account number, bill date
and the date after which the bill is
considered past due.
For More Information
Please refer to the back of the bill statement.
8
See the Glossary on Page 12 for definitions of terms appearing in bold.
9
Pricing options
A number of rate schedules are available for business and institutional customers. Other pricing options may be
available based on your specific circumstances – please check with your Account Manager for more information.
Peak Time
Winter Months
Peak Time
Summer Months
Principal electric pricing options
Rate
Schedule SGS
Small General Service
Schedule LGS
Large General Service
Description
Peak Time
Winter Months
Peak Time
Summer Months
Available to the individual customer with a kilowatt demand of 75 kW or less. If the customer’s
measured demand exceeds 75 kW during any month, the customer will be served under Schedule LGS.
Oct. 1 – May 31
Monday – Friday
6 a.m. – 1 p.m.
June 1 – Sept. 30
Monday – Friday
1 p.m. – 9 p.m.
Available to the individual customer with a kilowatt demand of more than 75 kW. If the customer’s
measured demand is 75 kW or less for 12 consecutive months, the customer will be served under
Schedule SGS.
For Schedule SGS and Schedule LGS, demand is calculated as the largest of the following:
• The maximum integrated 30-minute demand for the current billing period
• 50 percent of contract demand. When you apply for service, you and Duke Energy come to an agreement on the maximum
electrical demand that could be expected from your business. This provides adequate capacity for you on the Duke Energy
system and allows Duke Energy to properly size the equipment necessary to serve your business.
• 50 percent of the maximum integrated 30-minute demand during the billing months of June through September
• 30 kW
Schedule I
Industrial
Available to businesses classified as “manufacturing industries” by the Standard Industrial
Classification (SIC) Manual, provided that more than 50 percent of the electric usage is for
manufacturing processes.
Where the company has verified that all environmental space conditioning is supplied electrically, an
alternate billing demand provision applies (I all-electric), resulting in a lower bill on an annual basis.
For Schedule I, demand is calculated as the largest of the following:
• The maximum integrated 30-minute demand during the last 12 months (Schedule I) or the maximum integrated
30-minute demand for the current billing period (Schedule I all-electric)
• 50 percent of contract demand. When you apply for service, you and Duke Energy come to an agreement on the maximum
electrical demand that could be expected from your business. This provides adequate capacity for you on the Duke Energy
system and allows Duke Energy to properly size the equipment necessary to serve your business.
• 50 percent of the maximum integrated 30-minute demand over the previous 12 months (Schedule I all-electric)
• 30 kW
Schedules OPT-G,
OPT-I and OPT-H
Time-of-Use
All other weekday hours and all Saturday and Sunday hours are considered off-peak hours.
on-peak demand
On-peak billing demand is calculated as the largest of the following:
• The maximum integrated 30-minute demand during the applicable
summer or winter on-peak hours for the current bill
• 50 percent of your contract demand
• 15 kW.
Generally, if your business operates during hours outside the typical workday of 8 to 5, five days a week, you may
benefit from a time-of-use rate. Examples of where this would be beneficial are businesses open six or seven days a
week such as a convenience store or retail business. Businesses with significant energy usage on weekends or late
evening hours such as an auto dealer, restaurant or theater could also benefit. However, time-of-use is not likely to be
advantageous to customers using less than 2,500 kWh per month.
Available to nonresidential customers. Charges vary according to the time of day, day of the week and
season when energy is used. Prices are lower during “off-peak” hours, on weekends and during winter
months.
These rates are more likely to be advantageous to customers with a high load factor, or other
customers who have a significant portion of their usage occurring during “off-peak” times.
OPT-G is available to general service customers. OPT-I is available to industrial customers. OPT-H is
available to customers with an annual load factor of 75 percent or more and at least 1,000 kW, in a
new establishment or an existing establishment with a SIC code of 7373 or 7374.
On-peak and off-peak hours differ according to the season. An economy demand charge is applicable if off-peak demand
exceeds on-peak demand during the billing month.
10
See the Glossary on Page 12 for definitions of terms appearing in bold.
11
Glossary of terms
Glossary of terms (continued)
Actual demand
Maximum integrated (average) demand used by a customer during a billing period. Under Duke Energy’s rate
schedules, the demand is averaged over a 30-minute period.
Multiplier
Used to calculate actual usage for meters that register only a portion of kilowatts or kilowatt-hours used. The meter
multiplier is normally shown on the face of the meter and is shown on the bill.
Ampere
Unit of measurement of electric current.
Tariff
A document filed by a utility with a regulatory commission, listing the rates the utility will charge to serve its
customers, along with terms and conditions.
Basic facilities charge
A monthly charge based on costs associated with metering, meter reading, billing, etc., exclusive of demand
or energy consumption.
Billing demand
The demand value used for billing purposes on the customer’s monthly bill.
Demand
The rate at which energy is delivered, measured in kilowatts (1,000 watts) and averaged over 30-minute intervals.
Volt
Unit of measurement of electromotive force.
Watt
The electrical unit of real power. The rate of energy transfer equivalent to one ampere flowing under an electrical
pressure of one volt at 100 percent power factor. The rate of energy consumption.
Economy demand
On a time-of-use rate, the amount by which the maximum off-peak demand for the month exceeds the on-peak
demand.
Energy
The amount of electricity a customer uses during the billing period, in kilowatt-hours (kWh). In some cases, an electric
meter registers only a portion of the kWh used, and a meter multiplier must be used to determine the customer’s
actual usage. Any multiplier, if applicable, is shown on the customer’s bill.
fuel adjustment clause
An adjustment to a customer’s bill used to recover Duke Energy’s cost of fuel used to generate electricity. The state
utility commissions conduct annual proceedings to evaluate fuel costs. After review, the commissions may order that
rates increase or decrease to reflect changes to the cost of fuel only.
Kilowatt (kw)
A unit of electric demand or capability.
Kilowatt-hour (kWh)
A unit of electric energy. kW x hours= kWh
Load Factor
The ratio of the average electrical load divided by peak load during a designated period of time, expressed as a
percent. As an example, if a business used 10,000 kWh during one month (720 hours) and had a maximum demand
of 25 kW, then the load factor would be 56 percent.
{10,000 kWh/(720 hours x 25 kW)} x 100% = 56%
12
13
notes
14
15