Save Money on Your Electric Bill
Have you ever called in to sign up with an electricity provider and the guy on the phone is throwing all these numbers at you and talking about kilowatt hours but you have no idea if 11 cents per kilowatt-hour is a good thing or not?
You’re going to learn
- How the power grid works
- how to read your electric bill line by line
- and most importantly how to save money on your bill
If you’re like me you probably wonder if electricity all comes from the same place why are there different companies and providers for it?
To better understand this we have to understand what the electrical grid is.
The electrical grid is broken into 4 major components that generate power and bring it to you.
Individual Generators
The first component is how power is made. In the United States, we generate electricity in coal and natural gas burning power plants as well as hydroelectric dams, nuclear power plants, and wind turbines.
Transmission lines
how power is transported from these plants to your home or business.
Transformers
Convert high voltage electricity moving through the transmission lines to lower voltage for consumer use.
Consumer use & distribution
Power distribution is a kilowatt hour system of wires that picks up where the transmission lines leave off. These wires start at the transformers and end with homes, schools, and businesses.
Our use of electricity is what contributes to the “load”. It is the varying demand for energy.
How Electricity is measured
Electricity is measured in kilowatt hours. A kilowatt-hour is the amount of time it takes a for an appliance to 1000 Watts.
Reading your Electric Bill
Total electricity usage
How much energy kilowatt-hours you use monthly times how much your power company charges per kilowatt.
Simple rate
A simple rate is the easiest to understand. Your utility company charges a certain number of cents per kilowatt hour used.
Tiered Rate
A Tiered rate means you’ll be charged one price until you hit a certain number of kilowatt hours then you’re on the next tier and get charged another price (higher or lower depends on the provider) until you reach the next level.
Think of it like different steps on stairs. You’ll be paying one price until you hit a certain number of kilowatts that takes you to the next step.
Generation Charge: The cost to you for buying the electricity from the power plants.
Delivery Charge: The cost to deliver electricity from power plants to you.
Taxes: Taxes, duh
Saving Money on Your Energy Bill
The biggest ways your home or apartment draws power is by heating or cooling it depending on what time of year it is. Having a smart thermostat can help optimize your in-home temperature and save money by making your space comfortable when it needs to be, and energy efficient while you’re away from home.
Nest Learning 3rd Generation Thermostat
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Nest Learning 3rd Generation Thermostat
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How much do you spend on bills?
If we’re being honest paying bills is probably the least exciting thing about being an adult. That’s why I put together a guide that will help you save money on bills – All of them.
The booklet includes a list of my best tips to lower your monthly bills so you can have the money to do what you want.
The Bill Management Booklet is a comprehensive guide to not only saving money but optimizing your monthly expenses so they work for you, not the other way around.
I’ve put the everything written in the Bill Management Booklet into practice, every tip has been tested and proven to save you money on your bills.