What is the Demand or
TDSP charge shown on my bill?
grid must keep a certain amount of electricity in the power lines at all
times so there will be sufficient power for even a large industrial
customer to begin to turn on all their lights,
grid charges the cost of this power back to each utility company who has
billing customers in that part of the grid. This extra cost is a
pass-through-cost that is charged to each customer over and above the
actual kWh usage that customer had during that month. This is
shown as KW usage on each customers bill. Each customer is charged
the same percentage of the kWh used so it makes it fair to each
companies who use more kWh in a month, even though the percentage
charged to them is the same, their dollar cost is higher. The
small business that used less kWh during the month is paying the same
percentage but their dollar cost is smaller. Since the percentage
charged to each customer is the same for that month, it makes the cost
fair regardless of the amount of money each customer paid.
certainly would not be happy if the grid announced that there would be
no power in the lines from 12:00 PM to 6:00 AM daily. If the grid
said because the power usage during that time is so small and most homes
and businesses are not active during that time they would not require
electricity to be generated. We all want our climate control
systems to work and what ever lighting we want on to be on.
Therefore we must pay for sufficient power being in the lines whether we
are actually using it or not.
There is a charge for kWh
and a charge of KW on my bill. What is the difference?
kWh charge is the actual amount of electricity the customer used during
the month. The KW charge is a percentage of the kWh used and
each customer was charged the same percentage to pay the cost for the
electricity that had to be generated and maintained in the lines so
sufficient power would be there for each customer when it was needed.
This is a pass-though cost, the grid charges to each utility company who
has customers in that part of the grid. The utility company then
recovers this cost by charging each customer the same percentage that
month on each bill. The utility company does not make or lose any
money on the KW charge they pass along to each of their customers each
month. The KW hour charge is to pay for the generation of
electricity as well as the cost of the Grid to manage the system.
I get two bills for the same month when I switch to a new provider?
answer is a customer cannot be charged twice for the same electricity
used is a specific period of time by two different companies. It
is possible a customer could receive two bills in the same month, but
each bill will only be for the electricity used for a part of the month
that the customer was using power from each utility company.
look at a customer whose meter is read on the 20th of each
month. This customer switches to a new provider on the 5th
of the month. Their meter will be read this time on the 5th
of the month and the grid will send that reading to their previous
provider. Their previous provider will generate a bill for the
power used from the 20th of the previous month to the 5th
of the current month, which would be for 15 days in a 30-day month.
the 20th of the month, the regular meter reading cycle, the meter will
be read as usual. The grid will now send this reading to the new
provider. The new provider will generate a bill for the remaining
15 days of that month. In this instance, the customer could
receive two bills during the month, however each bill will only be a
partial bill. The following month they will receive a full months
bill from their new provider.
customer will ever, or can ever be charged twice for the same
electricity during the same month. The grid had taken steps to
insure that cannot happen. When a customer chooses another
provider, the switch will not take place until after their meter is read
and that reading is sent to the grid. The grid will then send that
meter reading to the previous provider so they can generate a bill to
the customer for the kWh used during that time.
customer will be switched to the new provider as soon as the meter
reading reached the grid control office. The next regular meter
reading will then be sent by the grid to the new provider so they can
generate a bill to the customer.
Some brokers tell us they
charge us a fee for their services and you say PowerPartners
never charges a fee.
How can you do
that if other broker have to charge a fee.
Every utility company pays a
commission to the broker for getting them a new customer. This is
just like an insurance company pays a commission to an agent for sending
them a new customer. This commission is already calculated into
the price of the kWh rate the electric company charges new customers
Each deregulated state allows
brokers to charge the customer an additional amount. We have found
that most brokers take advantage of this opportunity. When a
broker hires outside sales people, they have to pay them more because
their cost of obtaining a new customer is so much greater. They
charge the customer a fee to offset those additional costs.
elected to keep our costs to a minimum so we could keep from
charging our customers a fee. We do that by working entirely by
mail, phone and fax. We feel we probably end up clearing more on
each sale than some of the other brokers who chose to operate
differently. We are very pleased with this arrangement and we know
our clients are happy with the savings PowerPartners
has given them.
What if I decide I want
to switch back to my old electric company will they take me back?
Will they charge me more than their other customers or will they charge
me a penalty?
of all it is important to understand, your new provider has made a
commitment to the grid to buy at the current price the entire amount of
power you are going to use over the term of your agreement which could
be from 12 to 36 months. Because of that, if you terminate your
agreement early, they have the right to charge you a penalty. That
penalty may be more than it is worth to you to cancel your contract
answer to the question above is yes your previous provider will be
thrilled to have you back as a customer, and no they will not charge you
a penalty to go back to them. They cannot charge any customer a
larger kWh rate than they are advertising or that the grid will permit.
Since they are the incumbent in the area, they probably will not be as
competitive as other electric companies who are servicing customers in
the same area.
After I switch to a new
provider and there is a power outage, I have been told the local
electric company will repair my service after they take care of their
own customers. Is that true?
that is not true. The poles and wires division of the company is
paid each month by every single customer in their area. In fact,
the poles and wires division doesn't care who your service provider is.
You are paying them a fee each month to maintain the poles, wires and
transformers that service your area.
poles and wires division of the company does not have access to know who
your provider is and they could care less since there is a charge on
your monthly bill that pays them. Their loyalty is to you just as
much as to the next customer because you are all paying them the exact
same amount each and every month to maintain your service.
How can I be sure if I
switch to a new provider, they will not go out of business and leave me
state has carefully checked out each provider that has made application
with the state to insure that each of them are financially sound.
Should something happen however that is unforeseen that causes a
provider to go out of business, the state has taken steps to insure that
no customer will be left without power.
a provider should go out of business, the grid will automatically switch
each of their customers back to each customers previous power company.
Each power company is required to accept each customer at the then
current price they are offering. The customers power will not
flicker and the customer will not know they have even been switched back
until they receive either a notice from the grid or their bill from
their previous power company.
that time the customer can either elect to stay with their previous
power company or they can choose another provider. If they choose
to switch to a new provider, they may receive two partial bills for the
amount of electricity used during the switch over month. One bill
from their old supplier for the days they supplied the electricity and a
bill from the new supplier for the number of days that month they
supplied the power to the customer.
grid has taken steps to make sure the only reason a customer would ever
go without power is if they did not pay their bill during the time
allotted or there was a power outage for one reason or another.