Business

Commercial Rate Components Defined

• Base Service

  The base service is a fixed monthly charge designed to evenly distribute costs BrightRidge incurs when providing electric service to customers. Examples of charges that are incurred are: meter reading, maintaining customer records, capital and maintenance costs, etc. In other words, whether customers use electricity or not it costs to provide electric service to each and every customer. All customers (i.e. residential, commercial, and industrial) are charged a base service.

• FCA Rates

  Each month TVA implements a Fuel Cost Adjustment (FCA) that can fluctuate with TVA's fuel and purchased power costs. Therefore, electric rates may increase or decrease slightly based on the amount TVA pays for fuel and purchased power.

• DCRA Rates

  The Demand Cost Recovery Adjustment (DCRA) is an adjustment applicable to kWh usage based on the prior month's wholesale power rates paid to TVA. The adjustment accounts for changes in peak demand charges which are impacted by weather and customer usage behaviors. BrightRidge's peak demand to TVA is computed on the single highest one hour of usage during the wholesale period. BrightRidge will use a load factor calculation to determine the applicable rate, which may be a charge or credit. The DCRA rate is applicable to residential Rate 22 and small commercial Rate 40 for consumed energy (kWh).

• On peak & off peak kW

  On peak kW:  Demand (kw) used during on-peak time of day.  The demand is determined by the highest consecutive 30 minute usage within the clock hour.
  
  Off peak kW:  Demand (kw) used during off-peak time of day.  The demand is determined by the highest consecutive 30 minute usage within the clock hour. 

• On peak & off peak kWh

  On peak kWh:  Energy (kWh) used during on-peak time of day.  Summer Onpeak is Monday - Friday 2pm to 8pm and Winter Onpeak is Monday through Friday 5am to 11am
  
  Off peak kWh: Energy (kWh) used during off-peak time of day. 

• On peak & off peak kVA

  On peak kVA:  kVA is kilo-volt-ampere. kVA is a unit of apparent power, which is electrical power unit.  1 kilo-volt-ampere is equal to 1000 volt-ampere.  Apparent Power: The product of the voltage (in volts) and the current (in amperes). It comprises both active and reactive power. It is measured in “volt-amperes” and often expressed in “kilovolt-amperes” (kVA).
  
  Off peak kVA:  kVA is kilo-volt-ampere. kVA is a unit of apparent power, which is electrical power unit.  1 kilo-volt-ampere is equal to 1000 volt-ampere.  Apparent Power: The product of the voltage (in volts) and the current (in amperes). It comprises both active and reactive power. It is measured in “volt-amperes” and often expressed in “kilovolt-amperes” (kVA). 

• kWh or energy usage

  Total cost of energy (kWh); only includes energy (kWh) sales.

• kW or demand

  Total cost of demand (kW).

• Power Factor

  Power Factor: The actual kW, also referred to as demand, divided by the kVA “kilovolts-amperes” (apparent power).  An entity with a low power factor draws more current than an entity with a high power factor for the same amount of useful power transferred.  Utilities often bill a charge for poor (low) power factors.    Some rates have fees for a monthly power factor below 85%.  

• Load Factor

  Measurement of the uniformity and efficiency with which electrical energy is being used. A good load factor implies a more constant rate of electrical use. Expressed in terms of a percentage.

• Fuel Cost Adjustment (FCA)

  Each month TVA implements a Fuel Cost Adjustment (FCA) that fluctuates with TVA's fuel and purchased power costs.

• Facilities Rental

  This is a monthly charge applied to certain customer rate classes for the delivery of energy at delivery voltage levels.  Typically the higher the voltage delivery the less the charge.  This cost covers the fixed costs of the transmission and/or distribution system delivery for customers.  For example, if a customer takes delivery at 161 kV or higher the customer would have to have (own and be responsible) for the transformers to step down the voltage to the delivery voltage for their operation and that cost is thereby avoided. 

• Reactive Demand

  This is the charge for a poor power factor.  Some rates require an 85% power factor.  What is Reactive Power? The portion of electricity that establishes and sustains the electric and magnetic fields of alternating-current equipment. Reactive power must be supplied to most types of magnetic equipment, such as motors and transformers. Reactive power is provided by generators, synchronous condensers, or electrostatic equipment such as capacitors and directly influences electric system voltage. It is a derived value equal to the vector difference between the apparent power and the real power. It is usually expressed as kilovolt-amperes reactive (kVAR).

• Security Lights

  Security lights:  Total cost of security lights. 
  
  Security lights (FCA):  Each month TVA implements a Fuel Cost Adjustment (FCA) that fluctuates with TVA's fuel and purchased power costs; FCA applies to security light charges.

• Investment

  Maintenance and repair services beyond the metering point.

• TVA VCP

  The Valley Commitment Program (VCP) is a near-term program that was approved by the TVA board on August 22, 2013. The program is intended to provide incentives to maintain industrial competiveness in the Valley. Participation is voluntary and qualifying customers who agree not to submit a notice of service termination through September 30, 2015 will receive a credit per kWh on qualifying energy. Customers with service agreements due to expire prior to September 30, 2015 must agree to renew their service agreement consistent with Local Power Company policies (LPC); provided that the renewal term extends at least through September 30, 2015.  Participating customers will receive 0.2¢ per kWh on qualifying energy consumption.

• Tax

  Total taxes charged.  Most businesses are charged a 1.5% - 7.5% sales tax (State of TN).  This tax is applicable to all charges, including energy, demand, security lights, and other charges.  (There are no electric utility tax charged to residential customers.)