What Makes Up Your Electric Bill?

Most of Missouri’s Electric Cooperatives’ Member-Owners have a fairly simple rate structure made up of two parts: a member charge and a kilowatt hour charge. The member charge is a fixed amount, and the kilowatt hour charge varies based on the number of kilowatt hours you use during the month.

The member charge helps your Cooperative recover a small part of the fixed distribution costs of serving you, including expenses such as administration, operations, and maintenance. However, the majority of revenue needed to cover your Cooperative’s distribution costs comes from your bill’s kilowatt hour charge.

 Your kilowatt hour charge is made up of three parts — energy (kilowatt hour), demand (kilowatt), and distribution system expenses — which are shown proportionally in the graph below.