Understanding My Electric Bill
To help you better understand your electric bill, below is an example of a typical residential bill.
Transmission Charge: This federally-mandated charge covers the cost of transporting the electricity over the high-voltage (transmission) lines from the generation plant to Eversource's distribution system so we can deliver it directly to you. The transmission charge is collected by Eversource and passed on to transmission providers.
Customer Charge: This fixed monthly charge covers Eversource's basic costs for billing, metering and meter reading, customer service center, as well as making service available to customers, such as installing and maintaining meters, utility poles, power lines and equipment.
Distribution Energy Charge: Charge for delivering the electricity to you across our poles and wires and includes maintenance and operations of the distribution system, power restoration and service. Residential customers will notice a new billing structure intended to encourage conservation by charging a higher rate for electricity use above a certain kilowatt hour (kWh) level.
Residential Assistance Adjustment Clause: This charge recovers costs for providing discounted residential rates for qualified low-income customers. This charge also recovers costs related to the operation of the NUStart program, which assists low-income/fixed income customers in maintaining year-round electric service.
Pension and Post-retirement Benefits Other than Pension Adjustment Mechanism (PPAM): Recovers costs for providing current employees with pension benefits and retirement health care benefits.
Basic Service Cost Adjustment Factor: This bill component tracks the recovery of administrative costs to obtain energy for Basic Service customers. It also reflects a charge or credit when there is a difference in what customers have paid for Basic Service energy and what the supplier has charged Eversource for that energy during the prior year.
Net Metering Recovery Surcharge: This charge is intended to recover the cost of net metering credits and displaced distribution revenue associated with the installation and operation of customer net metering generation facilities.
Solar Program Cost Adjustment: Recovers the capital investment in approved solar installations and associated operating costs, such as program administration, land lease, and property tax costs.
Atty Genl Consultant Exp Adj: This charge recovers costs incurred by the Attorney General of Massachusetts for experts and consultants that were used in Eversource's latest rate case.
Storm Recovery Cost Adj: This charge recovers the storm fund deficit incurred over the past three years and reflects an increase in annual storm cost reserve.
Transition Charge: This charge covers past investment costs, such as those incurred from the mandated sale of generation plants as a result of restructuring. This charge will decrease over time as these costs are paid.
Energy Conservation Charge: This charge is collected to promote energy efficiency and is returned back to the customer through energy-efficiency measures, programs, services, incentives and rebates.
Energy Efficiency Program Cost Adj: Recovers incremental energy efficiency program costs as approved by the Department of Public Utilities.
Renewable Energy Charge: This charge funds the development of new energy sources, such as wind, solar and water power, to reduce our reliance on traditional energy sources like coal and nuclear fuels.
Supplier Services: The amount your supplier charges for making the electricity you use. Eversource purchases Basic Service through a competitive bid process for those that have not chosen a supplier. This price is the lowest available price on the competitive marketplace at the time of the bids and is passed onto the customer. Eversource then pays the supplier on your behalf. If you have chosen a competitive supplier, you will see that charge here.
Revenue Decoupling Adjustment: A charge or credit applied in order to balance Eversource's actual distribution revenue with the revenue level Eversource is approved to collect. Revenue Decoupling breaks the dependencies of revenue on sales and encourages utilities to aggressively promote energy efficiency programs.