Chapter 5

Understanding Utility Rates and Programs


High energy costs are a driver for energy management programs. Utility pricing options can have an important effect on energy costs. This chapter outlines the components of typical utility rates for various energy forms and outlines utility programs to assist customers.


Energy charges; demand charges; Time of use rates; declining block rates; inverted block rates; critical peak pricing; power factor; DSM programs; natural gas prices; coal prices; fuel oil prices


High energy costs are a major driver for energy management activities. Understanding utility pricing options and the factors that influence rates is an important first step in setting up an energy ...

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