Commercial & Industrial Rates Defined
Energy Consumption and Demand
Total cost of energy (kWh); only includes energy (kWh) sales.
Total cost of demand (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 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 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).
Ancillary Services and Miscellaneous
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.
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.
Maintenance and repair services beyond the metering point.
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.)
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.
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.
Power and Load Management
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%.
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.
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.
Cost Adjustments
Each month TVA implements a Fuel Cost Adjustment (FCA) that fluctuates with TVA’s fuel and purchased power costs.
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.
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).