Which term is the price or charge per unit that a utility service provider sets for delivery of service or commodity (e.g., per kWh or per therm)?

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Multiple Choice

Which term is the price or charge per unit that a utility service provider sets for delivery of service or commodity (e.g., per kWh or per therm)?

Explanation:
When you think about what a utility charges for delivering energy, the price assigned to each unit of service is the rate. It’s the amount you pay for one unit, such as per kilowatt-hour of electricity or per therm of gas. The total bill comes from multiplying this rate by the number of units you used. Budget billing is about smoothing payments over time, not the per-unit price. Arrears means overdue money. Therm usage refers to the amount of energy consumed, not the price itself. So the rate is the term that describes the price per unit.

When you think about what a utility charges for delivering energy, the price assigned to each unit of service is the rate. It’s the amount you pay for one unit, such as per kilowatt-hour of electricity or per therm of gas. The total bill comes from multiplying this rate by the number of units you used. Budget billing is about smoothing payments over time, not the per-unit price. Arrears means overdue money. Therm usage refers to the amount of energy consumed, not the price itself. So the rate is the term that describes the price per unit.

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