Plugging Into My Electric Bill

Energized is an ongoing series following my education about living a more sustainable life.

My journey begins with a few basic questions. How much electricity am I using each month? How much does it cost? It’s amazing (and a little embarrassing) that I’ve paid for utility services for almost 30 years without knowing. But I don’t think I’m alone.

Where I live, electricity is bundled with other services, such as water, waste water, and garbage pickup. This combined monthly bill has been a recurring expense in my household budget for years. But now I’d like to dig in to see how much I’m paying for just electricity. Knowing this will help me measure the impact of any future improvements.

First stop, Wikipedia. Electric service is measured in kilowatt hours (kWh). A watt is a measure of power; a kilowatt hour is 1,000 watts in use over one hour of time. Ten 100 watt light bulbs running for one hour will use one kilowatt hour of electricity.

Next, I was happy to find that my usage history was easily accessible on my provider’s website. Because I’ve recently moved, my usage history only goes back to February 2010.

My monthly electric usage and cost for the last 7 months

Observations and a few calculations:
•  I’m being charged two different rates! One rate for usage up to 500 kWh and a higher rate for anything over.
•  There are also two different overage rates; one for winter, one for summer. Overage rates are 30% higher in the hotter summer months than in winter.
•  A Fuel Charge accounts for almost one third of my bill. Charged per kWh, this covers the cost of the fuel needed to produce my electricity. Austin Energy claims this is a dollar-for-dollar pass through cost, without any markup or profit.
•  My usage in August was 309% higher than in March. This is obviously due to constantly cooling the house, but going over by 1,500 kWh at the higher rate added up fast.
•  The extreme heat of the Texas summer is sure to magnify any inefficiencies, such as inadequate weatherproofing or insulation, and inefficient cooling performance. It also means that habits such as leaving the door open while bringing in groceries have costlier consequences. But to take a more positive point of view, high summer temperatures and rates mean that being more efficient will have a bigger payoff.
•  For just my seven months of history, reducing consumption by 15% would have saved $140 (and 1,274 kWh). That would pay for more than an average month’s entire electric bill.

So here’s what I’ve learned:

Monitoring your bill is a good first step.
Know how much you use and how much you’re paying for it. Austin Energy, like providers in the entire State of California, has a consumption baseline for their customers. They set an allowance of energy each month at a low rate and charge a premium for usage over that amount. These baselines are designed to encourage conservation, especially during summer months when demand is high and systems are stressed.

The savings seem small. But they do add up.
At first glance, it seems that I might spend more at Starbucks than I do for a day’s electricity. But small savings throughout the home can add up to literally hundreds of dollars per year (and maybe even finance your caffeine addiction). Multiplying those efficiencies across a neighborhood, city and country can make a very meaningful impact on our overall consumption and approach to energy production.

Monitoring your bill only provides after-the-fact information.
There’s an obvious delay between my usage habits and seeing their cost impact on my bill. The delay makes it difficult to pinpoint inefficiencies or take cost-saving action.

The coming generation of smart meters and home management systems promise real time, actionable usage data, and should be widely available on the market in the next couple of years. But rather than waiting for those to come, I’m going to see what’s available now.

Next post: Do-it-yourself consumption analysis!

As Vice President of frog’s Design Realization group, Collin works closely with our design and engineering teams to bring innovative ideas to market. With over 20 years of experience in both creative and engineering management, Collin brings focus and multi-disciplinary expertise to this critical phase of the delivery process. In 1996, Collin co-founded frog’s digital media group and has worked extensively with frog clientele in the USA, Europe, and India.