Making Sense of Utility Bills &
Rate Structures
April 6, 2005
Ø For more
information, call the Penelec Customer Center at 1-800-545-7741.
Ø You are
charged for:
o Electricity
usage, measured in kiloWatt-hours (kWh), and
o Electricity
demand, or load (the peak rate of electricity used at one time) measured in
kilowatts (kW). The demand charge you
pay is based on your building’s highest demand over the past month.
Ø The amount
you are charged for kWh/kW depends on:
o The time
when you use electricity. On-peak
demand (kW) costs more than off-peak demand. You can ask for your on-peak period to be either 8am-8pm, Monday
through Friday, or 6am-6pm, Monday through Friday. Requesting 6am-6pm for your on-peak period usually results in
cheaper bills for congregations.
o Your Rate
Structure. Your worship space
qualifies for Penelec’s Church rate, indicated by the phrase “Min Waive
Max Bill” on your utility bill. The
church rate usually gives you the least expensive bills. If your minister’s house is separately
billed, it should be on the residential rate. If your social hall is separately billed, it should be on the general
service (GS) rate. If the bills for
these structures are combined with the bill for the worship space, these all
may qualify for the cheaper church rate.
Ø If you’re
not sure about your rate structure or on-peak period, call Penelec and ask if
changing these would result in cheaper bills for your congregation.
Ø For more
information call Les at 814-871-8260.
Ø Your gas
bill has two components:
o Commodity
Cost (the cost of the gas itself), and
o Distribution
Cost (the cost of transporting the gas to you).
Ø There are
two options for purchasing natural gas:
o Purchasing
commodity from National Fuel (referred to as “sales service”), or
o Purchasing
commodity from a gas marketer, and paying National Fuel only for distribution
(referred to as “transportation service”).
Ø If you use
less than 800 Mcf/year, “sales service” is generally the best option.
Ø If you use
more than 800 Mcf/year, “transportation service” is generally the best option.
Ø No matter
what your annual consumption, have the gas marketer or NFG run a transportation
spreadsheet to help you determine which service is best for your church.
Ø Congregations
are eligible for the “Residential” service class, which is generally the
cheapest option.
Ø For more
information about transportation gas, call Les Young or see http://www.natfuel.com/ForBusiness/choosing_a_supplier.htm#approved
Sales Tax and Congregations:
Ø Religious
congregations do not need to pay state sales tax on utility bills if they have
a Sales Tax Exemption number.
Ø To apply
for a State Tax Exemption number, contact the Sales Tax Exemption Unit of the
PA Department of Revenue at 717-783-5473.
Ø If you
have already been paying sales tax on utility bills, and if you have a State
Tax Exemption Number, you are eligible to apply for a refund from the
Department of Revenue (for up to three years of back taxes).
Ø Religious
congregations are not exempt from the state surcharges; do not confuse state
surcharges with state sales tax.