# Blended Utility Rates

## What are blended utility rates?

Blended Utility Rates provide a high-level view of a customer’s average energy cost. This is typically done by dividing the customer's total bill by the total kWh consumed. However, because there are usually charges other than kWh charges on a customer’s bill (energy, demand, other fixed charges), this calculation does not always provide the most accurate figure. For this reason, we’ve separated our Blended Utility Rates into an Energy Blended Rate and a Demand Blended Rate.

**Blended Energy Rate**

You can find the blended Energy Rate on the Edit Proposal page within the Energy Use Summary. The number you see is calculated by dividing the annual energy charge total (including NBC charges, if applicable) by the annual energy usage.

**Blended Demand Rate**

You can also find the blended Demand Rate on the Edit Proposal page within the Energy Use Summary. The formula to obtain this figure is slightly more complex than the blended energy rate formula since you cannot combine demand into a sum. Let's go through this calculation step by step:

- First, we find the Proportional Max Demand for each billing period as follows:

Proportional Max Demand = (number of days in billing period /number of days in the year) x Max Demand for Billing Period.

- Next, we calculate the Proportional Demand Charges for each billing period as follows:

Proportional Demand Charge = (number of days in billing period/number of days in the year) x Demand Charge for Billing Period.

- Once we have obtained the Proportional Max Demand and Proportional Demand Charge for each billing period, we then find the annual sum of each.
- With the sums, we can now calculate the Blended Demand Cost as follows:

Blended Demand Cost = Annual Sum Proportional Demand Charge / Annual Sum Proportional Max Demand