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Utility Tariffs vs. Electric Rates | What’s the Difference?

Are Electric Utility Rates and Tariffs the Same Thing?

NOPE – Not even close! While electric rates and tariffs often end up in the same discussion, they aren’t one and the same. Understanding both is the first step in taking control of your utility bill.

Electric Rates vs. Tariffs

Electric Rates

Electric Rates indicate how much the utility will charge per unit of electricity consumed (usually defined in kilowatt-hours) or per unit of demand (usually defined in Kilowatts).

Electric Rates

Tariffs

Tariffs are a collection of electric rates and other charges applied per the specific definitions of the tariff to calculate your final utility bill. For example, the tariff defines service charges, calendar dates like holidays, time of use periods, or consumption tiers.

Utility Tariffs

Types of Tariffs

APT’s home office’s local utility Pacific Gas and Electric (PG&E), has over 70 tariffs covering residential, commercial, agricultural, and industrial customers. Despite a large number of tariffs, there are recurring categories: General, TOU (Time-of-Use), and Interruptible.

General Tariffs charge per unit rates based on consumption and may increase (tiers) based on how much you use. These are how most residential tariffs are structured.

TOU (Time-of-Use) tariffs charge different rates based on the calendar date, time of day, and even time of year or season. Time of day typically is broken down into peak and off-peak hours.

Peak Hours are when everyone is using electricity, and so the electric rate is higher.
Off-Peak Hours are when few consume electricity, so the electric rate is low.

Interruptible Tariffs apply to customers with interruptible loads. These include customers who can reduce their consumption during high-demand periods and or emergencies. For instance, a great example would be a quarry that crushes rock or processes materials. Therefore, if the cost of energy exceeds the cost of the material, they stop processing and use stockpiled material.

Take Control of Your Utility Bill

APT’s RECIPE Analytics platform uses the same tariff and electric rate to calculate the bill. Moreover, RECIPE lets customers forecast, accrue, and reconcile their utility bills to control costs.

APT works closely with customers to understand their specific tariff and electric rates. We subsequently implement a power monitoring infrastructure to measure consumption and demand.

In short, understanding your tariff and electric rates is the first step in taking control of your utility bill. APT helps clients take that first step to control costs.

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Why Upgrading Your Power Monitoring System is Essential: A Comprehensive Guide

19 Apr, 2024

In the realm of facility management, the importance of a robust power monitoring system cannot be overstated. Think of it as a pyramid with multiple layers, each crucial for the system's optimal performance. From the metering devices capturing raw data to the comprehensive reports generated at the top, every layer plays a pivotal role. But why should you consider upgrading your power monitoring system? Let's delve into the key reasons: 1. Hardware Lifecycle: At the foundation of your power monitoring system lies its hardware components. Over time, these components, including metering devices and servers, reach the end of their lifecycle. Typically, servers have a lifespan of around three years, while metering devices may last up to a decade. Upgrading hardware is imperative to maintain peak performance and ensure accurate data collection. 2. Software Updates: Just as hardware ages, so does the software powering your monitoring system. Manufacturers continually update and improve application and database software to enhance functionality and security. Older versions may lack crucial updates, leaving your system vulnerable to cyber threats. By upgrading, you ensure compliance with IT standards and benefit from the latest features and security measures. 3. IT Compliance and Cybersecurity: In today's digital landscape, cybersecurity is paramount. Outdated software poses a significant risk, as it may lack the necessary defenses against evolving cyber threats. Compliance requirements also evolve, necessitating updates to meet industry standards and safeguard sensitive data. Upgrading your power monitoring system ensures adherence to IT policies and bolsters cybersecurity defenses. 4. Access to New Features: Technology advances at a rapid pace, and your power monitoring system should keep pace. Upgrades often introduce new features and functionalities, such as web-based controls, mobile access, and advanced alarming and notification tools. These enhancements empower users with greater flexibility, efficiency, and insight into power consumption and system performance. 5. Enhanced Functionality: Beyond new features, upgrades expand the functionality of your power monitoring system. This may include support for additional metering devices, web-based management tools, and comprehensive reporting capabilities. By staying up-to-date with the latest software and hardware advancements, you ensure that your system meets the evolving needs of your facility and stakeholders. In conclusion, upgrading your power monitoring system is not just a matter of staying current—it's essential for optimizing performance, ensuring compliance, and safeguarding against cyber threats. By investing in upgrades, you future-proof your facility's monitoring capabilities and empower stakeholders with accurate, actionable data. Don't wait until your system becomes obsolete; prioritize upgrades to unlock the full potential of your power monitoring infrastructure.