You Won’t Believe How Your Power Company Is Billing You!

You Won’t Believe How Some Power Companies calculate your energy bills.  Most just pay it and don’t bother to look at the details.  But,  how are they calculating the energy used and more importantly, how can you reduce that amount?  I know I am not the ONLY person who has ever asked this question, so I decided to write in detail about it.  For more info about better understanding electricity bills, visit:


KWH, Demand Charges, Peak Hours, Tiered Pricing based on WHO knows what?!?


All these extra complications make figuring out how much your monthly utility bill will be much more well… complicated.  If you are living on planet Earth and have a power bill, it is no surprise how electricity bills just keep getting higher and higher.  Despite power companies adopting more green technology, rates keep climbing as you can see below and that stopped at 2005.  I know in Florida, we are paying roughly 12 cents and in California, New York & Canada the rates are MUCH higher.

electricity prices 1973-2005

understanding power bills kwhElectric Companies calculate energy based on your usage.  But let’s dive a little deeper… the “WHEN” is just as important as “how much”.  Watts is a measurement that is used to find out how much each electrical device in your home uses.  Kilo is based on 1000 of those watts.  An hour is a measurement of time.  So if a light bulb uses 100 watts per hour, it would take 10 hours of light to equal 1 Kilowatt hour ( 100 watts x10 hours= 1000watts or 1 kilowatt/hour).

Power Company Hates This Guy Find Out Why

Then you have to take into account, “WHEN” these appliance use the energy throughout the day (remember those lovely peak hours & demand charges?).  And then, figure out your usage based on each tier of structured pricing your utility provider bills you at.  It’s enough to make your head spinny! But instead of doing a bunch of math for EVERYTHING in your home, you can look at the graph below and see what impacts your power bill the most.  By doing this, you can focus on making those things more energy efficient AND of course save you the most money.

hot water-energy saving tips

With Heating & Cooling being the biggest cost, it’s best to focus on that first.  Read my other post about hot water here.

How To Lower Energy Costs with HEATING & COOLING

heating energy loss1) Whether it’s hot or cold, this tip is definitely worth mentioning.  Before a coarse winter or hot sizzling summer, get your heating & cooling systems checked and cleaned to be sure they are operating at their best.  It is no joke to be without heat or A/C when weather is at its worst.

2) Be sure that any cracks/leaks/gaps are sealed to prevent air from escaping your home and jacking up your energy bill.

3) Also, check your air filters and keep those cleaned on a monthly routine to prevent needless repairs on your HVAC system.

4) Install 1 of our Electric Saver 1200 products to your HVAC system & make your home more energy efficient.


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