At Dakota Electric, we’re committed to helping you understand the key factors that influence your electric bill. By breaking down these elements, we aim to give you a clearer picture of how your energy costs are calculated and how you can manage them effectively.

Your electric bill consists of the service charge, energy consumption charge (kWh), the Resource and Tax Adjustment (RTA) and various taxes and fees. Here’s a quick overview of each component.

Service charge

This fixed monthly fee covers the basic costs of delivering electricity to your home, including the maintenance of essential infrastructure like power lines and transformers, as well as metering and billing. Despite rising equipment costs, this charge ensures that everyone shares these necessary expenses equally.

Energy consumption charge (kWh)

This charge varies with the amount of electricity you use each month. It covers the costs of generating and delivering electricity. The Resource and Tax Adjustment (RTA) is also included, adjusting annually to reflect changes in wholesale power costs and property taxes since our last rate case. You can lower this charge by adopting energy-saving habits, such as setting your thermostat to 78 degrees in the summer and using energy-efficient appliances.

Taxes and fees

Your bill may include franchise fees based on city ordinances, which vary depending on your location. Additionally, the Dakota County Transit Tax applies to members in Dakota County, and state taxes are based on rates effective as of January 1, 2019. Any further applicable taxes on electricity transmission, distribution or sales will be added to the rate.

Energy generation & delivery costs

We also provide a breakdown of how your bill is allocated to the generation, transmission, and distribution of electricity. This is updated annually and varies by rate class, offering transparency into where your money goes.

Understanding these components helps you manage your energy use and anticipate your monthly costs. If you have questions about your bill or need advice on saving energy, Dakota Electric is here to help. Call our Energy Experts® at 651-463- 6243.