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What is the facilities charge that appears on my bill each month and what does it pay for?

  •  By: Bob
  •  On: 12/28/2009 13:25:25
  •  In: Ask Bob

Clearwater Power Company’s service territory is more rural and has a lower population density than the typical investor owned utility (IOU)

Clearwater Power Company’s service territory is more rural and has a lower population density than the typical investor owned utility (IOU) that serves in urban areas. Because of this sparse density (averaging only 3.6 members per mile of power line), about half of your power bill goes to the actual purchase of electrical energy.

The other half goes to maintenance of the power lines, poles, substations, rights-of-way and the fixed costs of operating the utility including depreciation, interest expense, insurance, taxes, trucks and equipment, billing, administrative and miscellaneous services. The facilities charge is a contribution toward those fixed costs of operation and maintenance.

The amount of electricity you use may vary from month to month but these facilities costs are fixed. They occur whether you use the power or not. According to a recent analysis at Clearwater Power, the facilities cost for each residential account averages $78 per month per account. At Clearwater Power, we compromise and only charge a facilities charge of $18 per month. The rest of the fixed costs of operation and maintenance must be recovered in the electric rate.