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FAQ Statement
The answers to the most Frequently Asked Questions can be found below. Click on the question you choose and you will be
shown the appropriate answer. If you can not find the answer to your question, please do not hesitate to call us at (212) 575-0785. If you want us to contact you by email, please register so we can serve you better.
Bill Calculation ComponentsI am a RESIDENTIAL customer - what are the components that are used in calculating
my electric bill? I am a COMMERCIAL customer - what are the components that are used in calculating my electric bill?
Meter Reading, Billing, & Accuracy
How is my meter read each month?
Residential - Commercial How do I know my meter is accurate? What part does Bay City play concerning my electric bill? Air Conditioning, Vacations, & Conservation Why do I pay more for electricity in the summer?
I can't live without air conditioning. How can I keep my bill down? I don't use air conditioning. Why is my bill still high?
I was on vacation for two weeks and my bill was as high as ever. Why? I'm already conserving power. How can I do more? I am a Residential customer - what are the components that are used in calculating my electric bill?
Answer: The calculation of an electrical bill in residential cooperative buildings in New York City is usually
based upon the current Consolidated Edison Company Service Classification SC-1. This is the exact same rate charged to any residential customer that is directly metered by the Con Edison Company. To fully
understand the charges, an understanding of the various items used in the calculation of the monthly bills is necessary. The following description of the terms and items will explain the components used in the
calculation of the monthly charges.
- Energy Charge
- Energy is measured in kilowatthours (Kwhs). This charge is for the actual usage of electricity for a period of time, usually one month. ie. watts X hours divided by 1,000 =
kilowatthours. 10 - 100 watt lamps burning for 10 hours = 10,000 watthours or 10 kilowatthours (10 Kwhs). The Energy Charge is broken down into four separate components: (1) Market Supply
(or Commodity portion [COM]), (2) Monthly Adjustment, (3) Transmission, and (4) Distribution (parts (2), (3), and (4) equal the Delivery portion [T&D]). The Utility Company has a different rate
each month. The actual rate charged is a proration of the number of days of each month in the billing period.
- Customer Charge
- There is a charge per month, regardless of the amount of usage. This charge is to cover the cost of reading the meter and billing of the account and is part of the Delivery portion of
the bill. This is not to be confused with a minimum charge for a specific consumption or usage, but is a charge added
to the billing for the actual use indicated on the meter. This charge varies every month based upon the number of days in the billing period.
- System Benefit Charge
- The System Benefit Charge is a charge used to help relieve Con Edison of its stranded costs before New York State insisted they sell their generating plants for the purposes
of electric deregulation. This charge is determined by multiplying the system benefit factor by the Kwhs used in the billing period and is a part of the Commodity portion of the bill.
- "MSC" & "MAC" Adjustment Factor
- The adjustment factor (charge or credit) is based upon the monthly cost of fuel purchased by the Utility Company as well as the cost for purchasing power
from other Utilities during periods of high use by the customers. The "MSC" Adjustment is applied to the commodity portion of the bill and the "MAC" Adjustment is applied to the delivery portion of the
bill. This charge or credit is determined by adding the two adjustment factors together and multiplying by the kilowatthours (Kwhs) used in the billing period. The changing adjustments are
determined monthly by Con Edison and can be either a charge (+) or a credit (-).
- Rate Adjustment
- The rate adjustment is based upon the taxes that the Utility Company must pay to the City of New York and the State of New York for their operation and is also known as the
Gross Receipts Tax. There are two different factors of this adjustment: one applied to the commodity
portions of the bill and one applied to the delivery portions of the bill. This adjustment will vary periodically.
- Sales Tax
- The last item used in calculating the bill is the sales tax which is currently 4.125% of the sum of all components listed above, for residential customers.
Return to Top Of Page
I am a COMMERCIAL customer - what are the components used in calculating my electric bill?
Answer
: There are many items that go into the calculation of an electric bill in commercial buildings in New
York City. To fully understand the charges, an understanding of the various items is essential. The following descriptions of the terms and items will explain the components used in the calculation.
- Energy Charge
- Energy is measured in kilowatthours (Kwhs). This charge is for the actual usage of
electricity during a billing period. ie. watts times hours divided by 1,000 equals kilowatthours. 10 - 100 watt lamps burning for 10 hours = 10,000 watthours or 10 kilowatthours (10 Kwhs). The
energy charge is broken down into four separate components: (1) Market Supply (or Commodity portion), (2) Monthly Adjustment, (3) Transmission, and (4) Distribution [parts (2), (3), and (4) equal
the Delivery portion]. The Utility Company has a different rate each month. The actual rate charged is a proration of the number of days of each month in the billing period.
- System Benefit Charge
- The System Benefit Charge is a charge used to help relieve Con Edison of its stranded costs before New York State insisted they sell their generating plants for the purposes
of electric deregulation. This charge is determined by multiplying the system benefit factor by the Kwhs used in the billing period and is a part of the Commodity portion of the bill.
- "MSC" & "MAC" Adjustment Factor
- The adjustment factor (charge or credit) is based upon the monthly cost of fuel purchased by the Utility Company as well as the cost for purchasing power
from other Utilities during periods of high use by the customers. The "MSC" Adjustment is applied to the commodity portion of the bill and the "MAC" Adjustment is applied to the delivery portion of the
bill. This charge or credit is determined by adding the two adjustment factors together and multiplying by the kilowatthours (Kwhs) used in the billing period. The changing adjustments are
determined monthly by Con Edison and can be either a charge (+) or a credit (-).
- Demand Charge
- Demand is measured in Kilowatts (Kws). This charge is based upon the maximum amount of Kws used in ANY ONE HALF (1/2) HOUR PERIOD during the billing period.
Whichever half hour period is the highest, during the entire billing period (month), is the amount that the charge is applied to. The Utility Company has to have power available at all times within the
system so that when a switch is operated, the device controlled will function. This means that a certain number of generators must be 'on-line' at all times, the cables in the street must be able to
carry the capacity for the maximum use, the transformers outside each building (or group of buildings) must be ready and sized for the maximum use, and therefore, all of this preparedness must be
compensated. The Demand Charge covers this cost. There is a separate register within each commercial energy meter to measure the demand for each half hour period during the month. This
meter is reset every month when the meter reader reads the meter and then a new demand usage period is established for the next billing cycle. The Utility Company has a different demand rate each
month. The actual rate charged is a proration of the number of days of each month in the billing period. The demand usage usually drops off considerably due to tenants not using their air
conditioning equipment. It becomes obvious that if all of the equipment is not used at the same time or the use of the equipment staggered
, the demand charge would be reduced. For example: 10 - 100 watt lamps burning for at least a half hour would register 1,000 watts or 1 kilowatt (Kw). 20 - 100
watt lamps would register 2 Kw. Should you turn on all of your equipment for a half hour and register, say, 50 Kw, then if you turn everything off for the balance of the entire billing period, your
demand charge would be based upon 50 Kws as this was the maximum amount of electricity you required during the billing period. Similarily, if you were to turn only half of your equipment on, say,
25 Kws and leave it on all month long, your demand charge would be based upon 25 Kws. The demand charge is broken down into four separate components: (1) Market Supply (or Commodity
portion), (2) Monthly Adjustment, (3) Transmission, and (4) Distribution [parts (2), (3), and (4) equal the Delivery portion]. In many cases, the demand charges surpass the energy charges.
- Rate Adjustment
- The rate adjustment is based upon the taxes that the Utility Company must pay to the City of New York and the State of New York for their operation and is also known as the
Gross Receipts Tax. There are two different factors of this adjustment: one applied to the commodity
portions of the bill and one applied to the delivery portions of the bill. This adjustment will vary periodically.
- Electric Lease Rider Adjustment
- Any special adjustment specified in the electric rider to the lease agreement is added at this point in the calculation, prior to the application of sales taxes, as a
part of the electric cost.
- Sales Tax
- The last item used in calculating the bill is the sales tax which is currently 8.625% of the sum of all components listed above, for commercial customers.
- Proration of Bills
- The charges in any billing period which are less than or exceed thirty (30) days will be prorated to the proper number of days in the period. This means that the demand
charge in the rate schedule (which is based upon 30 days) is multiplied by the number of days in the billing period and divided by 30. Only the demand charge is prorated, not the number of Kws consumed.
Return to Top Of Page How is my meter read each month? - Residential
Answer: All residential meters are accumulative which means that the previous reading is subtracted from
the present reading and the difference is the amount used during the billing period. The meters measure the
energy consumed in kilowatthours (Kwhs). There are basically three methods of acquiring meter readings:
1. physically reading meter dials (from right to left), 2. physically reading a digital register, or 3. downloading
meter readings via computer telecommunications. The first two methods require a meter reader, of course, and, therefore, are more prone to human error, but the hand-held recording devices they use are
programmed to alert the meter reader if the reading entered does not fall within certain parameters and he must double-check his reading. The hand-held computer will not allow the meter reader to move on to the
next meter reading until the parameters are satisfied or overridden, keeping reading errors to a minimum. The last method of downloading the meter readings over a phone line (or dedicated line) are digitally
transferred and the readings are error-free. This last method is basically infallible of recording an erroneous reading. Return to Top Of Page How is my meter read each month? - Commercial
Answer
: All commercial energy registers are accumulative which means that the previous reading is subtracted from the present reading and the difference is the amount used during the billing period. The
meters measure the energy consumed in kilowatthours (Kwhs). There are two types of demand registers known as needle type and accumulative type. The needle type demand register displays the recorded
demand using a pointer on a graduated scale, or on dials (read right to left), or on a digital LCD readout. The needle type demand register is always reset to zero (0) to begin the next reading cycle. The
accumulative type demand register displays the recorded demand on dials or a digital readout and is reset prior to taking the reading. As with the energy register, the amount of recorded demand is the difference
between the present reading and the prior reading. There are basically three methods of acquiring meter
readings: 1. physically reading meter dials (from right to left), 2. physically reading a digital register, or 3. downloading meter readings via computer telecommunications. The first two methods require a meter
reader, of course, and, therefore, are more prone to human error, but the hand-held recording devices they use are programmed to alert the meter reader if the reading entered does not fall within certain parameters
and he must double-check the reading. The hand-held computer will not allow the meter reader to move on to the next meter reading until the parameters are satisfied or overridden, keeping reading errors to a
minimum. The last method of downloading the meter readings over a phone line (or dedicated line) are
digitally transferred and the readings are error-free. This last method is basically infallible of recording an erroneous reading. Return to Top Of Page How do I know my meter is accurate?
Answer: Bay City Metering (BCM) only sells "utility-grade" meters. This means that the meter installed by
BCM is the same quality of meter used by the Utility Company to meter the entire property. Electric meters are more dependable than electric clocks and in our testing over the years of more than four thousand
(4,000) meters, not one has been found to be operating fast. Some meters have been found to be dragging
or jamming, but even this has been rarely found. Meters are accurate and remain that way for many, many years. Return to Top Of Page What part does Bay City play concerning my electric bill?
Answer
: The only information Bay City Metering knows about your usage is what shows on the meter servicing your apartment. BCM does not
sell electricity to your Corporation, as the Utility Company sells the electricity to your Corporation at the Bulk Master Metering Rate. BCM is only a service hired to read
the meters and prepare the monthly billing. We do not share in ANY of the money you pay to your
Corporation for the payment of the electric service. BCM will answer your questions, test your meter and
repair or replace the meter if it found to be inaccurate. The only statement that can be made concerning the electrical charges is that the charges to the shareholders in a submetered cooperative are identical
to the charges that the Utility Company would have charged for the same service, or less. By New York State law, charges must be the same or lower, never higher. Return to Top Of Page
Why do I pay more for electricity in the summer?
Answer:
Like most of us, you probably use more electricity in the summer. We run air conditioners and fans to stay cool. Even your refrigerator works harder in warm, humid weather. And, when everyone
demands more electricity, the market price can go up. Return to Top Of Page
I can't live without air conditioning. How can I keep my bill down?
Answer:
Here's an area where know-how is important. Adjust the air conditioner's control to 78o F, its most efficient setting. Lowering the temperature below 78o
F can cost you 20 to 40 percent more for electricity. Is your unit clean and well maintained? The filter should be washed or replaced as often as
necessary to keep it clean. How old is your air conditioner? New models are more efficient, so consider
replacing an old unit. Look for the EnergyStar label, a designation on many appliances that they are designed for maximum efficiency. Make sure the unit is the right size for the space you cool and that the
doors to that space are closed. Turn it off when you are out of the room or away. It costs less to re-cool air than to run the air conditioner continuously. Return to Top Of Page
I don't use air conditioning. Why is my bill still high?
Answer:
One of the biggest energy users in your home is the refrigerator. Because it is always on, make it
as efficient as possible. Don't place it in direct sunlight or near a stove or radiator. Keep the condenser
coils clean by vacuuming or dusting them regularly. Make sure the rubber door gaskets form a tight seal.
Don't open the door any more than necessary. And, new refrigerators are the most energy efficient. Consider replacing an old one with a new EnergyStar model. Remember that ceiling and window fans can
make your home more comfortable without adding a lot to your bill. Return to Top Of Page
I was on vacation for two weeks and my bill was as high as ever. Why?
Answer:
Refrigerators and other appliances operate 24 hours a day, whether you're home or not. The next time you go away for more than a few days, empty and unplug your refrigerator. It will save you lots of energy.
Return to Top Of Page I'm already conserving power. How can I do more?
Answer: Here is where a little knowledge is your best ally in saving energy. Each month look carefully at
your bill and note how much electricity you are using. If you aren't using less, think of other ways you might
save. One of the most effective ways to save even more is with automatic timers and thermostats. Consider
installing motion sensors. They turn lights on when someone enters the room and off when the room is
empty. Replace ordinary bulbs with compact fluorescent bulbs. They use 40-60% less energy. Turn off
lights that aren't necessary. Use bright lights only where someone is reading or working. Sometimes a night
light is enough. When you buy new appliances, read EnergyGuide labels and look for the EnergyStar
designation. There's lots of new energy efficient products on the market. Don't forget to throw out the old inefficient one! Return to Top Of Page |
