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What Do These Charges on My Bill Mean?

September 30, 2024

Your monthly electric bill contains different charges, but what do they all mean? See below for a list of residential*, or general service rate charges.

• Fixed Charge: A monthly charge designed to recover the basic cost of electric service, independent of how much energy is used. It accounts for Stearns Electric’s investment in equipment like poles, wires and transformers, as well as labor to provide members with safe and reliable electric service. 
• Energy – Main Meter: Amount of total kWh of energy used during the billing period at the general service rate ($0.13220 per kWh from June – August; $0.11720 per kWh for other months).
• Energy – Off-Peak Meter: Amount of total kWh of energy used during the billing period at the EnergyWise® rate ($0.08300 per kWh from June – August; $0.06300 per kWh for other months). This rate is for accounts on certain load management programs, including Dual Fuel, Stored Water Heating, Storage Home Heating and ChargeWise.
• EnergyWise® Credit: A monthly credit provided to accounts on certain load management programs that do not have a second meter, including Cycled Air Conditioning and/or Peak Shave Water Heating.
• Power Cost Adjustment (PCA): An adjustment on your monthly rate which is implemented to account for fluctuations in wholesale power costs while keeping the base rate stable. The PCA is intended to reflect wholesale energy costs from our power provider, Great River Energy.
• Operation Round Up®: The total amount rounded-up to the nearest dollar after all other charges and put into Stearns Electric Association’s Trust Fund. This fund is then used to distribute grants and donations to local non-profit organizations, community service programs and other worthy causes through the Operation Round Up® program.
• Security Light: A monthly charge for accounts that have a security light installed.
• Additional Taxes and/or Fees: Depending on what community you live in, you may have additional sales, county and/or franchise taxes applied to your bill that are set by your local city and/or county, such as:
  • State Tax
  • “County Name” Transit/Use Tax
  • Franchise Tax
  • “City Name” Area Sales Tax

^*There are other membership types that include additional charges. General three-phase, small three-phase, irrigation, interruptible three-phase and interruptible single-phase. One charge that impacts these rates is Demand. Demand charges are intended to recover the cost of facilities (such as transformers, wires and power plants) available to provide the maximum amount of electricity which a consumer may require at any time.