Bill glossary

Basic Charge – Single-Phase and Three-Phase
This fixed monthly charge covers some of the set costs associated with having electric service, costs the company incurs regardless of the amount of electricity used (i.e. cost of meters, meter reading, record-keeping, etc.). Some non-residential rates in Oregon also have a Load Size Charge built into the Basic Charge. In these cases, this charge also covers costs associated with the customer's demand (kW), such as the type and size of equipment needed at the site or on the transformer.

BPA Columbia River Benefits
The Bonneville Power Administration (BPA) credit is applied to all kWh usage up to 2,000 kWh each month on bills of qualifying residential and small farm customers in Oregon as part of the Pacific Northwest Electric Power Planning and Conservation Act.

City Utility Tax
This charge is collected on behalf of a city, generally pursuant to a city ordinance. All taxes are remitted to the city requiring the tax for its use.

Delivery Charge
This charge covers some of the costs related to poles, lines, transformers, etc. used to deliver electricity from its source to the customer’s home or business.

Demand charge (kW)
Demand charge is measured in kilowatts (kW). This is a measurement of capacity or the rate at which energy is used. Demand represents the greatest amount of energy used in 15-minute intervals during a billing cycle. High demand is usually associated with equipment start-up, which requires higher energy use than routine operations. 

Energy charge (kWh)
Electricity is measured in watts, like gasoline is measured in gallons. A kilowatt-hour (kWh) is 1,000 watts used steadily for one hour – a measurement of the rate of electrical energy used multiplied by the length of time it is used. 

Supply Energy Charge
This charge covers some of the costs of supplying electricity. Customers are charged a tariff price for the number of kilowatt-hours (kWh) used. 

Low-Income Discount Recovery
This charge recovers the costs of providing electric bill discounts to qualifying low-income families in Oregon.

Low-Income Assistance
This state-mandated charge collects funds and forwards them to a state agency, which provides energy assistance to eligible low-income households.

Power factor or reactive power (kvar)
Power factor (or reactive power), measured in kilovolt-amperes (kvar), results from equipment that draws more current from the electrical system than usual. Customers can reduce this charge by turning off unused motors and other equipment and by installing capacitors.

Public Purpose
A state-mandated charge that provides funds for energy efficiency services and programs, which are offered to customers to help them lower their energy usage.

Rate schedule
Identifies rate category for your service address. This determines the rate you are billed.

System Benefit Charge
A state-mandated program which provides a system benefit including planning and pursuit of cost-effective energy efficiency resources, support and integration of transportation electrification and other system beneficial programs.

Time of Use rates
A rate system for customers designed to reflect the higher energy costs during the peak months of the year and hours of the day. See Time of Use rates.

Basic Charge – Single-Phase and Three-Phase
This fixed monthly charge covers some of the set costs associated with having electric service, costs the company incurs regardless of the amount of electricity used (i.e. cost of meters, meter reading, record-keeping, etc.). Some non-residential rates in Washington also have a Load Size Charge built into the Basic Charge. In these cases, this charge also covers costs associated with the customer's demand (kW), such as the type and size of equipment needed at the site or on the transformer.

Bill Assistance Program
This state-mandated surcharge provides funds to cover energy assistance programs for eligible low-income households.

BPA Columbia River Benefits
The Bonneville Power Administration (BPA) credit is applied to all kWh usage between 0-1000 each month on bills of qualifying Oregon and Washington customers as part of the Pacific Northwest Electric Power Planning and Conservation Act.

Demand charge (kW)
Demand charge is measured in kilowatts (kW). This is a measurement of capacity or the rate at which energy is used. Demand represents the greatest amount of energy used in 15-minute intervals during a billing cycle. High demand is usually associated with equipment start-up, which requires higher energy use than routine operations. 

Energy charge (kWh)
Electricity is measured in watts, like gasoline is measured in gallons. A kilowatt-hour (kWh) is 1,000 watts used steadily for one hour – a measurement of the rate of electrical energy used multiplied by the length of time it is used. The average Pacific Power customer uses approximately 948 kWh per month or 11,376 kWh per year.

Energy Charge (Block 1, Block 2):This charge covers the costs of providing and producing electricity not covered through the basic charge. Customers are charged for the number of kilowatt-hours (kWh) used. The Company uses a two-tiered, or “Blocks,” pricing structure designed to encourage customers to save energy, which keeps energy bills low. Usage of 0-600 kWh is considered Block 1, and usage above 600 kWh is considered Block 2. Block 1 is priced at a lower rate than Block 2.

Power Cost Adjustment Mechanism
This charge reflects the difference between the costs of power that were established in the Company’s annual transition adjustment mechanism (TAM) filing and the actual costs of generating power that were incurred during the previous year.

Rate schedule
Identifies rate category for your service address. This determines the rate you are billed.

Renewable Energy Adjustment
Renewable Energy Certificates (REC) are used for transferring, trading, selling or buying environmental benefits associated with renewable energy. Pacific Power sells a portion of the RECs it generates yearly. Revenues from sales are credited against the cost of providing energy. The market value and the quantity of RECs sold vary year to year. The Renewable Energy Adjustment on customer statements can be either a credit or debit based on the actual REC revenues received.

Utility Tax
This charge is collected on behalf of a city, generally pursuant to a city ordinance. All taxes are remitted to the city requiring the tax for its use.

Washington State Utility Tax
Tax collected by the state on the gross income derived from the operation of public and privately owned utilities. The state utility tax amount is included in the total Energy Charges itemized on your bill. Utilities are required to identify the amount of State Utility tax included in the Energy Charge separately on customer statements

Basic Charge – Single-Phase & Three-Phase
This fixed monthly charge covers some of the set costs associated with having electric service, costs the company incurs regardless of the amount of electricity used (i.e. cost of meters, meter reading, record-keeping, etc.).

California Climate Credit
This credit results from fees charged by California to reduce carbon pollution and increase use of cleaner forms of energy. These fees are returned to customers in a bill credit to residential customers twice a year and to small businesses monthly. Learn more at cpuc.ca.gov/climatecredit

Carbon Pollution Permit Cost
The Carbon Pollution Permit Cost is a monthly charge based on how much electricity you use. It covers some of the costs to purchase greenhouse gas emissions allowances (permits) required to satisfy the company’s compliance obligation as part of California’s Cap and Trade Program.

CEMA Adjustment Charge
The Catastrophic Event Memorandum Account Surcharge is designed to recover costs incurred by the Utility associated with restoring utility service to customers, including repairing, replacing, or restoring damaged utility facilities, and complying with governmental agency orders resulting from declared disasters.

CPUC Surcharge
This state-mandated surcharge supports the regulation of utilities in the state by the California Public Utilities Commission.

Demand charge (kW)
Demand charge is measured in kilowatts (kW). This is a measurement of capacity or the rate at which energy is used. Demand represents the greatest amount of energy used in 15-minute intervals during a billing cycle. High demand is usually associated with equipment start-up, which requires higher energy use than routine operations. 

Energy charge (kWh)
Electricity is measured in watts, like gasoline is measured in gallons. A kilowatt-hour (kWh) is 1,000 watts used steadily for one hour – a measurement of the rate of electrical energy used multiplied by the length of time it is used. The average Pacific Power customer uses approximately 948 kWh per month or 11,376 kWh per year.

Energy Charge – Baseline or Non-Baseline
This charge covers the cost of distribution of electricity from power plants to meters (i.e. lines, transformers, conductors, etc.), and generation (i.e. power plant, fuel, transmission, etc.) of electricity. Depending on the type of heat (electric water heating or permanently installed electric space heating) and the location, all meters have a “baseline allowance” each month. If the total kilowatt-hours (kWh) used is equal to or less than the baseline allowance, energy will be billed at this first tier rate only. Any usage exceeding the daily baseline rate is charged at a higher per kWh rate (non-baseline rate).

Energy Cost Adjustment Clause (ECAC) Adjustment 
Required annual regulatory filing in California used to reflect in rates the actual cost of generated power. ECAC rates may be either raised or lowered based on the change in net power costs from the previous year.

Klamath Dam Removal Charges
This state-mandated surcharge provides for funding costs associated with the removal of Klamath River dams. The monies collected are currently in a trust held by the California Public Utilities Commission.

Low Income Assistance
This state-mandated surcharge is used to collect funds for the California Alternate Rates for Energy (CARE) program, the low-income energy assistance program in the state.

Rate schedule
Identifies rate category for your service address. This determines the rate you are billed.

Residential CARE Adjustment
Applicable to residential low-income households. The CARE Adjustment credit is equal to 20% of the energy and basic energy charges minus the State Energy resource tax.