Understanding the ConEd bill: Demand Delivery

According to the ConEd phone person rewiring the house would not make a difference because they would switch the rate based on usage pattern for the EL1 meter. There are 2 different EL1 rates so they probably leave a door open to charge a different rate. I couldn’t find a lot of public info about delivery pricing rates.

While my consumption is comparatively high (1 HVAC unit, probably not working right, heating a whole house) I think more people might experience a version of this soon.
Here is why:

1. Smart Meters are now installed in most houses.
That is how they can see much electricity you use at exactly what time. They are all about ‘flattening the curve’ to lower peak demand and keep the grid stable.

2. We will see more and more demand pricing.
Look at this disclaimer or ad about a ‘select pricing plan’ for supply pricing (not delivery) which just popped up in my ConEd account (and probably yours, too)
https://www.coned.com/en/accounts-billing/select-pricing
quote: “Waiting until off-peak hours and staggering the use of large devices saves the most money.”

There you have it, staggering of devices is the key word. You get punished if you have a high peak demand. I am sure they will make this non-optional as soon as 90% of households have a smart meter.

Augustiner

in General Discussion 3 years and 1 month ago

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Augustiner | 3 years and 1 month ago

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Is it possible that the ConEd charge labeled ‘Demand Delivery’ (which is 40% of my total bill) is not an actual consumption charge, but an extra fee based on peak KW consumption? To ‘allocate’ the amount and ‘keep it available’ for me on demand?
Just another scam if you ask me.

helen40

in General Discussion 3 years and 1 month ago

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No. Your electric bill is comprised of two parts (plus taxes): Supply of electricity and delivery. Its my understanding that Con Ed provides electricity at cost, which varies with supply and demand. The delivery charge pays for Con Ed’s infrastructure and the grid. Your demand is the actual amount of electricity you use.

Augustiner | 3 years and 1 month ago

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I am aware of the separation of supply and delivery charges.
In the delivery charges section there is an actual delivery charge for the kWh consumed.
But I am talking about the extra charge called ‘demand delivery‘

andriywww1990 | 3 years and 1 month ago

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do you have EL1 Residential service? i seem to recall “demand” charges on a bill i used to process for a commercial property but this is years ago. so i checked my residential bill and i see nothing on there called “demand delivery”. my service is EL1 Residential.

i seem to recall the commercial demand charge as being something that utilities placed on commercial users where by they bill them more for electric during high demand hours to try to get them to shift some load to off hours.

helen40

in General Discussion 3 years and 1 month ago

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Two family owner here. My unit’s bill, like @doors’…., which is listed as an EL1, does not have that “demand delivery” charge either. When the rental apartment was vacant, Con Ed classified it as EL2 “small non-residential,” but did not include that demand delivery charge, either. @augustiner – did you “sign up” either knowingly or not, for a smart meter and peak demand surcharges? Not sure thats even a thing. You may actually have to speak to Con Ed to figure it out. Good luck.

stevecym | 3 years and 1 month ago

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Augustiner, I just googled “do residential con ed bills have a demand delivery charge on them” and someone else in brooklyn posed the same question on reddit as that person was in the same situation you find yourself. The answer was that esl1 does not have a demand charge and that charge was reserved for businesses. Check what service you have.

Augustiner | 3 years and 1 month ago

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Thank you – it is very helpful to know that you don’t have this charge on your bill.
My rate shows as EL9 GENERAL LARGE COMMERCIAL
The heating/ cooling unit which causes the bill is on a PLP meter of a 3 family house. That meter is usually for to Hallway lighting and other common charges.
It should probably be EL12 MULTIPLE DWELLINGS SPACE HEATING.

I will call ConEd to see if they can do something about it – it would make a huge difference. I’ll report back

solehappy | 3 years and 1 month ago

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as a 2 family owner with 3 electrical meters i am seeing my shared “h&c” meter listed as EL2 Small Non-Residential. I see Customer Charge, Delivery, System Benefit Charge, and GRT & other surtax. the delivery charges are 3x the supply charges. does that sound right?

Augustiner | 3 years and 1 month ago

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After analyzing my bills I found this out:
The meter was billed as EL2 Small Non-residential until 2/2020, after that it switched to EL9 – large commercial without notification. The price per kWh is much lower, but the Demand Delivery adds a lot.

When comparing to EL1 residential the delivery charge difference looks like this (based on my last bill)

EL9 DELIVERY ————————–
Energy delivery 1,602 kWh @2.9682¢/kWh $47.55
Demand delivery 12.0 kW @ $29.0583/kW $348.70
System Benefit Charge @0.5000¢/kWh $8.01
GRT & other tax surcharges $9.72
Sales tax @8.8750% $36.74
Total electricity delivery charges $450.72

THAT IS $ 0.28 per KW

EL 1 DELIVERY ——————————————–
Basic service charge $17.00
Delivery 435 kWh @12.1586¢/kWh $52.89
System Benefit Charge @0.5011¢/kWh $2.18
GRT & other tax surcharges $3.55
Sales tax @4.5000% $3.40
Total electricity delivery charges $79.02

THAT IS $ 0.18 per KW
_______________________________________________________

Despite using only a max of 3-4 kw my silly Mitsubishi Hvac regularly spikes at 12 kw for a minutes or two. I called ConEd and the phone operator said that’s just what it is: if you have demand of 12 kw then you get bumped up to that rate.

cate | 3 years and 1 month ago

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Wow, what a surprise gotcha. Who would have thought. I thought the classification was determined by the building type. For example, a religious institution might use 12 kw but will they also be bumped up? Or a single or two-family townhouse? In any case, now I’m wondering if there’s some way to adjust the HVAC. Do all HVAC systems operate this way? Mitsubishi is very popular for mini-splits. Is everyone with HVAC in this same situation? Is this a new policy for Con Ed?

stevecym | 3 years and 1 month ago

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I think august has to make a case that he was mis classified and have it switched back. We are talking about a three family right?

If it was my three family and i lived in it, i might be tempted to move the common area circuits over to my box and then tell con ed to remove the meter. Not sure how that would work.