If you’ve noticed your energy bills are going up while your energy usage hasn’t, a delivery rate increase may be to blame.
If you take a close look at your current energy bill, you will notice that it consists of two charges: A delivery fee and a supply charge. The delivery fee is the amount you are charged for getting your energy to you. The delivery rate is set by state regulatory agencies, and the revenue allows utility companies to maintain and upgrade their systems.. The supply charge is the cost you pay for the energy you use. The amount you are paying for your supply can depend on many things, like weather, demand, and even market trends.
A utility may request to increase the amount they charge on their delivery fees through a formal rate case process with the Public Service Commission (PSC), the section of the government that regulates gas, electric, private water utilities, and telecommunications and cable providers.
In New York State, after a rate case has been filed, the PSC has a team that analyzes the filing consisting of lawyers, accountants, engineers, economists, financial analysts, and consumer service specialists. The PSC is required to make a decision within 11 months after the rate case is filed.
Why Are Rate Increases Requested?
In 2022, electric companies requested over $12 billion in rate increases across the United States, while natural gas companies requested over $4 billion in rate increases. In the filings, rate case requests from electricity companies were to upgrade transmission systems . Natural gas companies were requesting funds to upgrade aging infrastructure. Both types of utilities have also used inflation as a reason for rate case filings.
How Can I Save on My Energy Bills?
While you can’t eliminate delivery charges from your bill, there are ways you can help keep costs down and reduce your usage. One way to reduce your usage is to increase energy efficiency.
Improve Your Building Envelope
For example, ensure your building is insulated properly with a building envelope. The building envelope refers to the external physical components of a structure, including the walls, roof, windows, doors, and foundation, that separate the interior environment from the external climate. It acts as a barrier against heat transfer, air infiltration, and moisture penetration. By focusing on the building envelope, you can achieve significant energy efficiency benefits.
Upgrade to LED Lighting
Another way to increase energy efficiency is simply by upgrading to energy-efficient LED lighting solutions. LEDs have an exceptionally long lifespan compared to traditional lighting options, lasting up to 25 times longer. Additionally, LEDs consume significantly less energy to produce the same amount of light as traditional bulbs, resulting in substantial energy savings.
Install an Energy Management System
If you are looking for a way to monitor and manage your heating system, look into installing an Energy Management System for your building. An EMS provides real-time monitoring and analysis so you can gain visibility into your buildings’ energy consumption patterns, identify areas of inefficiency, and make data-driven decisions to reduce energy waste, control energy costs, and improve energy efficiency. On average, customers can save 20% on energy costs by installing an EMS.
Participate in a Demand Response Program
In addition to increasing and improving energy efficiency, another way to reduce usage is through a demand response program. Demand response is the act of reducing the consumption of electricity during periods of high demand (“peak events”). Some utilities even compensate businesses for curtailing energy usage when the grid is under stress. Participating in a demand response program and reducing usage during peak events can also help reduce the capacity charges on your electricity bill.
Take Control of Your Energy Usage
While delivery charges are controlled by the utility and supply charges are controlled by market prices, you can control your energy usage, which can help keep costs down. And you can do that through energy efficiency, renewable generation, assets monetization, or a variety of other innovative solutions Energo offers. As a full-service energy provider, Energo is truly your one-stop-shop for all your energy needs.
Contact us to learn more about our options or to get started!