Comparing Realgy’s Price to MidAmerican’s Price and Billing

We use the Compare Realgy Price handout (seen below) to explain what will change on their bill and how to understand what happens when they choose MEC’s Customer Choice rate.

If you say; “add up your bill energy charges divided by total usage and it will add up to the MEC rate on the Realgy Comp”. Generally, this is correct. However, mathematically this is wrong for 2 reasons;

1. All MEC default rates have a tiered component. That is; their monthly billed energy costs are composed of 2 different rates.
   1. Usage from 0-X is at a rate of $A
   2. Usage from X-Z is at a rate of $B.

So, every MEC customer rate is unique to them unless they have the same usage for the same month.

       2. Realgy’s Comp rate is shown for the usage profile provided in the Comp. If the customer does not have the same usage, it will be slightly different.

What does this all mean?

Like all statements about utilities, there is a general rule and lots of caveats.

You can say; add up the costs shown on your bill and divide by the usage and it will show YOUR MEC tariff rate. The Comp shows our price compared to MEC for the given usage and a percentage difference. We use the same price for all Customers in the ManagedPrice pool.

The more usage on the customer bill the more the difference in the rate will appear as MEC’s second tier is closer to our monthly price. This will reduce the savings shown on our Comp. However, in most cases, it is very slight.