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Supply charge – This is the deregulated portion of the electric bill. This is the cost of generating the power the customer is estimated to use during the term of the energy contract. Residential and business customers in deregulated service areas have the choice to shop around for a competitive energy supplier.

Power Grid

Regulated (Delivery Charge)

Delivery charge – This is the regulated portion of the electric bill. This is the cost associated with maintaining the lines and wires to deliver the electricity from the generation plants to the point of service, whether it be the customer’s home or business. This charge is regulated by the state and charged by the utility company.

Customer

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Energy Choice (You)

Energy Choice – The responsibility of the utility company was “unbundled” and as a result, the utility company was no longer the sole producers of electricity. Residential and business customers now have a choice to select a retail energy supplier to generate their power.