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# Find Out How Much You Can Save With Direct Energy

Follow our simple formula to find out how much you'll save on your electricity bill each month.

## Here's an Example That's Easy to Follow

These charges can be found on your monthly electric bill or on the Electricity Facts Label (EFL) for a plan. While all the components may seem overwhelming, estimating your bills when you're shopping for energy plans is easier than you think.

Let's walk through an example of a fixed-rate plan.

Gather your electricity charges. For this example, let's assume your bill has the following charges.

##### \$5.00 per month

Multiply your Energy Usage for the month by your Energy Rate Per kWh.

#### 1,000 kWh x \$0.10 = \$100.00

Multiply your Energy Usage for the month by your Usage-Based TDU Charge.

#### 1,000 kWh x \$0.05 = \$50.00

Add your costs from Steps 2 and 3, along with your Base Charge and Fixed TDU Charge.

## Electricity Bill Glossary

Your energy usage is measured in kilowatt-hours (kWh). Your energy usage will vary month by month based on several factors, including weather, energy-using habits and the energy-efficiency of your home's appliances and systems.

Your base charge is a fixed monthly fee that helps cover the operational costs associated with your electricity account such as billing.

Your energy rate is the price you pay for each kWh you use. This price is set by the competitive retail electricity provider (REP). The two types of energy rates you will see are fixed and variable. A fixed rate allows you to pay the same energy rate per kWh for the entire length of a specified term, while a variable rate might change with market prices, which can vary seasonally as temperatures rise and fall. For this reason, it can be more difficult to calculate your electric bill with a variable rate.

Your TDU is the company who maintains all the poles and wires and transmits electricity to your home. TDU delivery charges are set by the TDU in your area and help cover the cost of delivering energy to your home. The charges are the same for every REP that serves the area. TDU charges include a usage-based amount that changes based on your energy usage and a fixed amount that will remain the same each month.