What Does an Electric Utility Company Do?

An electric utility company is responsible for generating, transmitting and then finally delivering power to your home, office, business, or factory. Power is generated and then sent to dispatch centers from every electric utility company. These centers decide where to send the current based on supply and demand. They buy and sell this power based on the determined usage in each sector of the area they serve. One power plant may buy power from another to meet overwhelming demand at times. This means that you are guaranteed to get all that you need from your power supplier when you need it the most.

Some states have regulated power plants which means the consumer is designated a particular power supplier that will cover the area in which they reside. The consumer does not have a choice in this type of situation. Other states have deregulated power plants which give you a choice in which electric utility company you wish to deliver your service. The advantage of this is that the consumer is able to shop for competitive rates.

Basically an electric utility company serves three different sectors of the community: residential, commercial and industrial. The rates charged are set by many different things including:

– Supply and demand

– Voltage needed

– What the usage is intended to serve

– How much usage is involved

The highest rates are usually given to residential customers because the usage is smaller for a home. Industrial consumers tend to have the lowest rates because their businesses consume larger amounts of power.

An electric utility company offers you power at their cost. Your bill reflects charges for things such as poles, lines, repair vehicles, power plant maintenance, technicians and other employees, as well as other overhead costs involved in the production of the power that you receive. These costs are overseen by the Public Utilities Commission or PUC in each state. If you have any questions about your bill, you can call the Public Utilities Commission or the utility that serves your home, office, business or factory. Either entity will be happy to explain your bill in detail to you.

Power is billed per kilowatt of power used. A kilowatt is equal to one watt of power used per one thousand hours of service. Your power supplier usually offers different types of pay plans such as specialized plans for people who may be on a fixed income, senior citizens, or those who fall below the federal poverty level. These types of plans take the average of the usage for a specified period of time and this sets your fixed rate. There is also a variable rate which simply means you pay for the power that you consume each month according to the meter display.

Your power utility will also have safety tips available to you about how to handle downed power lines, being observant of overhead lines while working outdoors, and many other hints that will keep you and your family safe. They also can make suggestions to you as to how to consume less in order to reduce your carbon footprint and save money while you’re doing it.

If you are thinking about switching from your electric company to a new electricity supplier or

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