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Tiered rate check

Tiered Electric Rate Savings Guide

Understand tiered electric rates, baseline allowances, and higher kWh blocks before judging why a monthly bill jumped.

Electric bill

$226

Energy$142
Delivery$48.00
Fees$36.00

All-in rate

$0.246 per kWh

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Cooling hours

First signal

When this guide fits

The bill shows Tier 1, Tier 2, baseline, block rate, over baseline, or different prices for different kWh amounts.

A small kWh increase can become expensive if it moves usage into a higher tier. The marginal kWh may cost more than the average kWh shown by the full bill.

Check first

  • Find tier, block, baseline, or allowance lines on the bill.
  • Compare usage against the threshold for the higher tier.
  • Check whether weather, EV charging, heating, cooling, or pool equipment pushed usage over the line.
  • Separate tiered energy rates from fixed delivery and customer charges.

Practical savings moves

  • Target the usage that falls into the highest tier first.
  • Use appliance estimates for the load that pushed the bill over the threshold.
  • Compare daily kWh so a longer bill does not look like a tier problem.
  • Use savings math based on the marginal tier rate, not only the average rate.

Avoid these mistakes

  • Do not use the average bill rate to value the final high-tier kWh.
  • Do not ignore billing days when comparing tier thresholds.
  • Do not assume tiered charges are a billing error without checking the rate table.

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FAQ

Short answers for search visitors and bill-checking moments.

Why did a small kWh increase raise my bill so much?

If the bill uses tiered rates, extra usage may have moved into a higher-priced block.

Which kWh should I try to save first?

The kWh in the highest tier usually has the strongest savings value, after fixed charges are separated.