When managing household finances, many of us overlook our utility bills until there is a noticeable price increase. Understanding the dynamics of your energy use and electricity rates sheds light on the factors that influence your utility bill.
Let’s explore how electricity is billed and tools to help you take control of your energy use.
If a gallon of gas costs $4.50 and you fill a 10-gallon tank, you pay $45. Let’s say you drive 20 miles a day and your car gets 20 miles to the gallon. You’re paying $4.50 a day to drive your car. You paid upfront, and you likely don’t think about the $4.50.
Let’s compare that to your electric space heater. If you run the average 1,500-watt space heater for 8 hours, the heat generated from this appliance adds $2.34 to your utility bill. If you run it every night, the amount added to your monthly utility bill is $70.20. Unlike the gas you bought to fill your tank, you don’t pay for electricity until after you use it. Seeing an increase in your bill may come as a shock and leave you asking, “Why is my bill so high?”
Like fuel for your car, you buy electricity in measurable units. These units are called kilowatt-hours. 1 kilowatt-hour is equal to the amount of energy you would use if you kept a single 1,000-watt appliance running for an hour. For example, if you switch on a 1,000-watt space heater for 1 hour, it would use 1 kilowatt hour of energy. How much does a kilowatt-hour of energy cost? For Lassen Municipal Utility District (LMUD)’s residential customers, a kilowatt-hour is 19.5 cents.
Energy use is just one component of your bill. In the winter, we use more energy to heat and light our homes and keep pets and livestock comfortable, which translates into higher bills. The amount you are charged per kilowatt-hour is also a major factor.
Last February, LMUD’s residential rate was 16 cents per kilowatt-hour. After a series of rate increases—including the most recent half-cent increase on January 10 — the rate is now 3.5 cents higher at 19.5 cents. What does that mean to you? If you used 1,000 kilowatt-hours in February 2023, the charge for that energy was $160. Today, the cost for that same amount of energy is $195.
It may feel as though you have no control over your utility bill. Yet the amount of energy you use is in your hands. Being aware of the cost to run items, such as space heaters, stock tank warmers, and electric blankets, helps ease electricity bill sticker shock.
During winter months when days are short, nights are long and temperatures drop below freezing, energy use is higher. Using LMUD’s SmartHub app lets you track energy use and set limit alerts that put you in control of how much energy you use. You can download the app on Google Play or the Apple Store.
If you need help understanding your bill, our team of energy experts can help. If you need help paying your bill, our Winter Energy Assistance Rate program offers income-eligible customers financial assistance from November through April. Find program guidelines and an easy-to-fill-out application at the LMUD website.
To view LMUD’s current rates and a history of rate adjustments, visit the Rates page.