Spotlight: Energy Bill Basics
Sample bill from Portland General Electric (click to enlarge)
We use energy at home every day – from turning on the lights to brewing that cup of coffee to warming up our homes in the winter months. That energy comes in different forms, including electricity, natural gas, propane, fuel oil, and even wood. How you get around is also part of your energy use, whether you fill up your car with gasoline or electricity. All of these uses end up as part of your home energy bills.
In our 2020 Biennial Energy Report, ODOE broke down the basics about energy bills for residential and commercial energy customers in our Energy 101 section.
Understanding bill terminology can help Oregonians better understand what the changes mean on energy bills from your electric or natural gas utility bills. On your bill, the meter measures how much energy you’ve consumed. The rate schedule shows how much you pay based on the type of service used. For example, some electric utilities may have lower rates during hours when electricity demand is low.
Utility bills also have a few things in common, such as the basic or service charge, which is the minimum cost of service regardless of how much energy you’ve used. Your energy use shows up in the use charge, and is typically measured in kilowatt hours of electricity or therms of natural gas. Utility bills can also include other charges if you’ve signed up for voluntary green energy plans, and you might see charges for low-income assistance programs for residential customers who aren’t able to pay their bills.
Electricity bills include other charges and adjustments, such as the cost to build and maintain transmission and distribution infrastructure. Other adjustments can come from regulatory changes, energy efficiency measures, demand response recovery, and others. For Portland General Electric customers (see sample bill), you may see a charge associated with the decommissioning of the Boardman Coal Power Plant.
Natural gas bills have similar charges and adjustments, like distribution, pipeline, and storage charges to support natural gas infrastructure. NW Natural customers can also opt-in to a green energy program and could see a smart energy cost on their bills.
For Oregonians driving all-electric vehicles, your car transportation costs will show up in your electric bill if you charge at home. If you fill up your gas-powered car at the gas station, you’re paying for the amount of petroleum fuel to fill your tank along with its related distribution, storage, and refinery costs, as well as added taxes that help fund Oregon’s roads and highways. However, other factors can influence the cost of fuel at the gas pump – check out where Oregon’s transportation fuels come from to learn more.
Looking to reduce your energy bills? Using more energy-efficient equipment, such as home heating and ventilation units, water heaters, and vehicles, can make a big difference in your energy bills. Weatherizing your home to improve insulation or install double- or triple-pane windows can keep your home cooler in the summer and warmer in the winter, and lower your heating and cooling costs. Dive in to more on energy efficiency in our Energy Report.