BILL READING GUIDE

How to Read Your Florida Commercial Electric Bill (2025)Every Line Item Explained

🧾 What You'll Learn

• Energy Charges: How kWh usage is calculated and billed
• Demand Charges: Why peak power costs 30-40% of your bill
• Fuel Adjustments: Monthly variable charges explained
• Environmental Riders: Mandatory fees for clean energy
• Taxes & Fees: State, county, and municipal charges
• Rate Schedules: Which rate you're on and if it's optimal
• 10 Red Flags: Signs you're overpaying

📅 Updated: February 2025•⏱️ 12 min read•✅ Duke, FPL & TECO

Florida commercial electric bills are intentionally confusing—utilities pack them with cryptic line items, abbreviations, and charges that seem arbitrary. That $15,824 monthly bill? It's actually 8-12 separate charges bundled together.

Understanding exactly what you're paying for is the first step to reducing costs. This guide breaks down every line item on Duke Energy, FPL, and TECO bills so you can identify overcharges, spot inefficiencies, and know which charges you can actually reduce.

📄 Typical Florida Commercial Bill Breakdown

Total Bill: $12,450

Breakdown:

• Energy Charges (kWh): $5,850 (47%)
• Demand Charges (kW): $3,240 (26%)
• Fuel Adjustment: $1,680 (13.5%)
• Environmental Riders: $420 (3.4%)
• Franchise Fees: $375 (3%)
• Sales Tax (6%): $720 (5.8%)
• Utility Tax: $165 (1.3%)

Key insight: Only 47% is actual electricity consumed!

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1. Energy Charges (kWh) - Your Actual Usage

Energy charges are based on total kilowatt-hours (kWh) consumed during the billing period. This is the only charge directly tied to how much electricity you use.

How It's Calculated

Formula:

Total kWh × Energy Rate ($/kWh) = Energy Charge

Example:

98,500 kWh × $0.095/kWh = $9,357.50

Typical Florida Rates (2025)

• Duke Energy: $0.088-$0.102/kWh
• FPL: $0.095-$0.108/kWh
• TECO: $0.091-$0.098/kWh

💡 Pro tip: Some rate schedules have tiered pricing (first 10,000 kWh at one rate, remainder at another) or time-of-use rates (higher during peak hours).

2. Demand Charges (kW) - Your Peak Power Usage

Demand charges are based on your highest 15-minute power usage during the month. This typically represents 25-40% of your total bill.

Example on Your Bill

Bill line item: "Demand Charge: 185 kW × $12.50/kW = $2,312.50"

This means your peak 15-minute interval was 185 kW, and you're being charged $12.50 for every kW of that peak.

Why this matters: One brief spike (all equipment starting simultaneously, AC running during peak heat) can cost you thousands. See our complete demand charges guide for reduction strategies.

10 Red Flags on Your Bill

🚩 High Demand vs Average Load

If demand is 2x+ your average usage, you have spiky load patterns costing thousands.

🚩 Wrong Rate Schedule

Many businesses are on default rates when better options exist.

🚩 Power Factor Penalties

Charges labeled "PF adjustment" or "reactive power" mean you're being penalized.

🚩 Excessive Fuel Charges

Fuel adjustments over 15% of base charges may indicate rate issues.

🚩 Unexplained Spikes

Month-to-month usage jumps of 20%+ without obvious cause.

🚩 High Off-Peak Usage

Paying peak rates for usage during off-hours means wrong rate schedule.

Frequently Asked Questions

Why does my bill fluctuate so much month-to-month?

Three main reasons: (1) Fuel adjustment charges vary monthly based on natural gas prices, (2) Demand charges can spike if you had one peak event, (3) Seasonal usage (AC in summer). PowerAuditor.ai can identify which is causing your fluctuations.

Can PowerAuditor.ai read my bill for me?

Yes, instantly. Upload your Duke, FPL, or TECO bill and PowerAuditor.ai automatically identifies: every line item, optimal rate schedules, demand reduction opportunities, fuel charge trends, and potential savings of $500-$5,000/month.

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