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When trying to calculate your energy bill, you have to take into consideration how various companies charge users for their electricity.

In markets where energy is not deregulated, electric companies tend to have control over what they decide is a fair price to charge for electricity each month. This often means that when the demand is high and lots of people are using lots of energy, the cost will go up. This tends to align with the months that have the most severe climates such as the hottest days of summer and the coldest of winter as people are either blasting their air conditioners or cranking up their furnaces.

Some markets however allow electric companies to sell electricity at a steady pre-determined rate. Some users find this beneficial because they are better able to predict how much money they will have to spend on electricity. But it is smart to calculate your savings before signing up for such a program as it is not guaranteed to save you money.

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Q: How Electric Companies Calculate Your Bill?
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