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 ELECTRICITY  COSTS         

 

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Electricity costs vary from State to State and within states.
 

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Electricity costs around the U.S. can vary by a factor of 10 
depending on the State, location within the State and by local
Electric Distribution Companies (EDCs). Electricity rates can be
low if the facility is close to a hydro electric plant. Electricity
rates can be very high when served by nuclear plants or oil in
California, Hawaii and the US Virgin Islands. 
 

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In many areas, electricity costs have increased following
deregulation
due the State PUCs granting power companies the
 right to recover "stranded  investments"  from their rate payers
(often called Transition Costs on the deregulated electricity  bills.). Many clients report their electricity costs increase by
10% to 15% following their State's deregulation of electricity
markets
 

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Some electric utilities design their rates based on electrical
demand peak (KW or KVA) ...  plus KWH consumption. Others
tie their rate design to their true electricity generation cost
(market based rates) and vary the KWH and KW cost based on the
time-of-day and day of the week.  
 

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Some EDCs have also added new fees for services traditionally
included in the rate such as "line extension" fees for new
electricity services.
 

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In other cases there are new government required fees and
taxes added to electricity bills. Some states also have 'KWH taxes'
to fund state demand-side management (DSM) programs also
known as public benefit funds.