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Energy bills can be complicated and mysterious. While the cost of apples (for example) is the number of apples times the price per apple, utilities slice and dice their energy "apples" (or units) in a variety of ways. And many utilities don't make it clear how much their whole apples cost you (they instead tell you the price for every little slice).
The purpose of this article is to help you understand your Ameren Services Company (Ameren) energy bill. So you can take control and cut it. The next article in the series will show you quick and easy ways to cut it.
To see your current energy rates, click here to scroll down.
This article is focused on your electric bill. When we say energy, we mean electricity. The article doesn't consider natural-gas heating.
A "Tiered rate plan" is a rate plan where the amount you pay per kWh for electricity increases as the quantity of electricity consumed increases. Generally there is a baseline allowance of a certain number of kWhs (kilowatt hours) per month that are charged at a cheaper rate, and then usage above this allowance is charged at a higher rate.
A "Time-of-Use" rate plan is an electricity plan where the amount charged per kilowatt hour (kWh) is determined by the time of the day and the season of the year in which it is used.
Time-of-Use plans will typically have "peak" periods with higher rates and "off peak" periods with lower rates.
The idea behind time of use billing is to get customers to use less power at peak periods (when most people use a lot of power). Peak periods put a lot of strain on the grid. This is why time of use billing is being implemented by all major utilities. It is an attempt to encourage consumers to help spread out the load, and thus reduce investment needed to support brief periods of extremely high usage.
If customers can adjust their habits to use appliances at non-peak times they have the potential to significantly lower their electricity bills. Although, as power at peak times is much more expensive, if you continue to use lots of power at peak times your bill could be higher.
How does our rate plan work?
Your energy bill has two parts:
- A service charge
- An energy charge
The service charge is the same for all households — whether they run a single desk fan or a hundred air conditioners. It covers Ameren expenses that aren't directly related to your energy usage. Examples are Ameren's phone-support staff, and the hold music you hear while waiting for phone support. The service charge doesn't change month by month. It's only about 15% of a typical family's total monthly energy bill ($13 out of $86/mo).The energy charge
Unlike the service charge, the energy charge is based on actual usage. What's the energy unit that Ameren uses? Like other U.S. utilities, they charge per kilowatt-hour, abbreviated as kWh. Let's use the classic light bulb example to understand kilowatt-hours:
100 light bulbs x 10 watts per light bulb = 1,000 watts. A "kilo" is a thousand, so 1,000 watts = 1 kilowatt.
…If the light bulbs are left on for 1 hour, that's 1 kilowatt x 1 hour = 1 kilowatt-hour (when in doubt, just squish words together).
Let's make sure you have that. How many kilowatt-hours are used if you leave one hundred 10-watt light bulbs on for an hour? …1 kilowatt-hour. Here are the steps: 100 light bulbs x 10 watts each = 1,000 watts. Divided by 1,000 = 1 kilowatt (there are 1,000 watts in a kilowatt). Left on for 1 hour = 1 kilowatt-hour.
Standard energy unit
Unit name: kilowatt-hour
Abbreviated as: kWh
Now let's talk money. How much does Ameren charge to keep this single kilowatt-hour (kWh) of light bulbs on for an hour? They charge 9.2¢ per kWh on average (for a home with typical usage). One kWh multiplied by 9.2¢ per kWh equals…9.2¢. If the 100 light bulbs were kept on 24x7 for a month (720 hours straight), Ameren would charge $64.80.
A typical family in Ameren territory uses 936 per month on average (for perspective, they'd get to the same total by keeping 22 typical laptops on 24x7). They pay $86 per month for those 936 kilowatt-hours. How does your home compare?
Ameren rates are much lower than the national average — the average Ameren rate for a family with typical energy usage is 9.2¢ (including the service charge). The average national residential rate is 13¢.
Does Ameren charge a premium in the summer?
Yup, summer rates are 20% higher than winter rates for a typical family. Between this and higher summer usage, the average summer bill is 37% higher than the average winter bill ($105 vs $77 per month). Ameren's summer-rate season goes from June 1 to September 30.
Would we have a lower bill on a different Ameren rate plan?
Many utilities now offer an optional "time of use" rate plan. Time of use gives you more control of your energy bill. Unfortunately, Ameren doesn't offer this newer type of rate plan (yet).
Newer type of rate plan
Typically referred to as: Time of Use
Abbreviated as: TOU
The good news is that you don't need a different rate plan to cut your bill. The next article in this series will walk you through other bill-cutting opportunities.
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What are our current Ameren energy rates?
Assuming you're on Ameren's default residential rate plan (code name: DS-1), here are the rates you currently pay:Default plan's rates
|Plan Name:||Residential (DS-1)|
|Last Update:||June 1, 2018|
|Fixed Charge:||Service Charge: $12.97|
|Summer (June 1 to September 30)|
|Rate per kWh|
|Energy in Tier|
|Winter (October 1 to May 31)|
|Rate per kWh|
|Energy in Tier|
|Tier1:||First 800 kWh|
|Tier2:||Above 800 kWh|
Note: Ameren charges differently depending on where you're located. In the rate table above, we showed the rates and energy quantities for the most populous city in Ameren's territory (Springfield, IL).
Are the rates shown here accurate?
Determining the actual rates charged by a utility can be daunting, so websites typically just publish general estimates. Cut My Bill is different — we're showing you your real up-to-date Ameren rates. Here are the nitty gritty charges we've accounted for: basic generation service - secondary, electric uncollectible adjustment, purchased electricity recovery - residential, distribution delivery charge, EDT cost recovery charge, clean energy assistance charge, renewable energy adjustment, energy efficiency and demand-response investment charge, energy efficiency and demand-response cost recovery charge, electric environmental adjustment charge, transmission service - DS-1, customer charge, uncollectible recovered in base rates, meter charge.
Rates can be verified here.
How do I work out if I am on the cheapest Ameren rate plan for my usage pattern?
To do an exact comparison on how much you would save from switching plans requires collecting your detailed usage data for the last 12 months. This is known as Interval Data and sometimes also called Green Button Data.
What are the best ways to cut our bill?
We're glad you asked. Let's continue to the article: Three Best Ways to Cut Your Ameren Services Company Bill.
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