Understanding Your Energy Costs

Energy Savings

Understanding Your Energy Costs

If you’re like most people, when you receive your energy bill you simply go to the amount due, pay it, and then go right on about your day. The only time we examine it more closely is when that amount is higher than we expected. Unfortunately, unlike cell phone and cable bills, energy bills tend to fluctuate based on seasonality and changes in usage amounts.

So it’s important to understand how your energy bill is calculated so you can be keep it as low as possible every month. While some aspects of energy costs are fixed, others are variable and can result in significant changes to your monthly total.

We’ll explain some key points of your bill so you’ll have a better understanding of which factors you can control.

How Your Bill is Calculated

Without getting too technical, here’s a basic formula for how your monthly energy bill is calculated:

Amount of Energy Used + Supply Generation Charges + Delivery Charges + Additional Fees and Taxes = Your Total Monthly Bill

Let’s look at each of these factors individually:

Amount of Energy Used– This could be for either electricity (labeled in kilowatt-hours or kWh) or natural gas (labeled in therms or either hundreds or thousands of cubic feet/Ccf or Mcf).

Supply Generation Charges– This is just a fancy term for the cost of energy purchased for you by either your local utility or a supplier like Powervine Energy.

Delivery Charges– This is the charge applied by the utility for the operation and maintenance of their delivery system that delivers the energy within their service area to your home or business.

Additional Fees and Taxes– This includes all mandatory government fees required to deliver and supply your energy.

Unfortunately there’s not much you can do to reduce some of these factors. However, there are three things you can focus on that can make a substantial difference in your monthly energy costs: price, term, and the reputation of your supplier.

Let’s look at each of these in more detail.


When it comes to your energy supply price per kilowatt hour, therm of multiple of cubic feet, offers such as fixed rate, variable price, or “teaser” rates can significantly affect your monthly bill. Only a fixed price can protect you from energy prices volatility. A variable price may be above or below the utility but that utility price could significantly increase at any time. Having a variable pricee for natural gas and electricity is like buying gas at a gas station – the price can fluctuate frequently and in big swings.

As a way to protect you from fluctuations in supply price, Powervine offers secure pricing with all of its energy plans so you’ll don’t have to worry about your energy costs during your term. This means that no matter what may happen with energy prices in the future, you can rest assured that your energy price is secured for the length of your term.


The next factor to consider is your term length. This relates to price as it determines how long your current price is protected against fluctuations in the energy markets.

In general, shorter fixed price terms carry less risks. Longer plans offer less flexibility but allow you to lock in and secure your price for a longer period of time. Your choice in term length will depend largely on your individual needs.

Powervine offers different term options for both electricity and natural gas plans so you can know exactly how long your savings are protected.


And finally, the reputation of your energy supplier is something you’ll want to research and consider as well. Not all energy suppliers are created equal so it’s important to choose a reputable one to ensure you get the best energy experience possible.

Our mission at Powervine is to help customers save on their energy costs while providing value and solutions in a way that no other energy supplier can.

To find your plan, simply type in your zip code to view the competitive prices we offer in your area. Switching is easy and can be done online with no service disruptions or additional costs.