Basic Billing Information for your Business

Kilowatt-hour (kWh) and Kilowatt (kW) Demand
The watt is a unit of electrical power. When larger amounts of electrical power are measured the unit of measure is the kilowatt (kW) which is 1,000 watts. The electrical power of one kilowatt used for one hour consumed is one kilowatt-hour (kWh) of energy.

Demand Charge
Demand is the total amount of electricity being used by a consumer at one time. It is measured in kilowatts (kW). MVEC monitors demand in 15-minute intervals on a monthly basis. This means the 15 minutes your business is consuming (or demanding) the most electricity in a given month will establish your demand for that month.

Power Factor
Reflects how efficiently your facility uses electricity. It is determined by the ratio of real (active) power (kW) to apparent (kVa) reactive or magnetizing power. All electrical systems require both components. MVEC would like to see your power factor over 90% and less than 100%.

Power Factor Penalty
An additional charge is added to your electric bill if your Power Factor is below 90%. MVEC can assist you with correcting your Power Factor to avoid the additional charge on your bill. It is the responsibility of the business to maintain proper power factor so it is above 90%.

Service Charge
This monthly charge applies to all MVEC members (both residential and commercial).

Taxes
MVEC must collect sales tax on electric energy services sold. However, the state does have exemptions and refunds available for businesses that have made over payments on their taxes. To receive this form please contact our office.

For more information contact
Greg McFarland
952.492.2313 or (800) 282.6832
info@mvec.net