Understanding Supply and Delivery Charges

Your Eversource electric bill is made up of two charges—supply and delivery. As a regulated utility, all of our rates are reviewed and approved by state regulators.

What's The Difference Between Supply and Delivery?

The supply charge is the cost of electricity you use. We purchase electricity from suppliers on your behalf and pass the cost directly to you, no profit added.

The delivery charge includes components for operating, maintaining and upgrading the electric system, funding critical customer services and programs, taxes and other state and federally-mandated charges. 

Infographic that explains supply and delivery charges on customer electric bills

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Supply

We purchase electricity from suppliers that generate electricity at a power plant or generating station. We pass that cost on to customers with no profit added. 

See the latest supply rates

What is a supplier?

Suppliers generate electricity at a power plant or generating station. We purchase electricity from suppliers and it is transmitted to substations in the electric grid.

All customers have the option of choosing Eversource or another energy supplier to obtain energy on their behalf.

How we determine your rate

The supply rate is based on the current market price of electricity. This price changes twice each year—on January 1 and July 1 —as demand for energy increases or decreases.

How you're charged

We track your usage in kilowatt hours (kWh). This is a measure of energy use over time. We then multiply your usage by the supply rate to determine your supply charge.

Supply rate x kilowatt hours = supply charge

Delivery

The delivery charge supports electric grid maintenance and upgrades, funds critical customer services and programs and includes mandated public policy fees that we are required to pass through to customers.

See the latest delivery rates

Usage impacts your delivery charge

Some delivery charges are calculated based on your usage and are charged in cents per kilowatt hour (¢/kWh). We multiply your usage (measured in kilowatt hours) by the rate to determine your charge. Using less energy can lower these charges. 

Delivery rate components

Distribution and Transmission Charges

These charges help us operate and maintain core components of the electric grid – the transmission and distribution systems.

  • The transmission system includes the large high-voltage power lines that deliver electricity over distances from power plants to Eversource’s distribution system. This charge is for operating and maintaining this system. This is a federally-mandated charge that is collected by Eversource and then passed on to transmission providers.
  • The distribution system includes utility poles and wires in and around your city or town that deliver electricity to your home or business. This charge is for operating and maintaining this system.

Customer Charge

This fixed monthly fee covers costs related to billing, meter services, customer service and personnel. 

System Investments and Upgrades

  • Grid Modernization – This charge allows Eversource to recover company investments that protect, strengthen or modernize the electric grid.
  • Solar Program Cost Adjustment – This charge recovers the capital investment in approved solar installations and associated operating costs, such as program administration, land lease and property tax costs.
  • Solar Expansion Charge – This charge recovers the capital costs and associated operating costs in the approved solar generation projects owned by Eversource.
  • Storm Cost Recovery Adjustment – This charge recovers certain costs incurred during major weather events.
  • Vegetation Management – This charge recovers incremental costs associated with Eversource's vegetation management program, which is designed to reduce the number and duration of service interruptions caused by trees.

Public Policy Charges 

  • Attorney General Consultant Expenses – This charge recovers consultant expenses incurred by the Massachusetts Attorney General for review of various regulatory filings before the Department.
  • Energy Efficiency Charge – This charge funds energy efficiency programs for all customers. 
  • Renewable Energy Charge – This charge funds the the Massachusetts Renewable Energy Trust Fund.
  • Long Term Renewable Contract Adjustment – This charge recovers costs associated with long term renewable contracts that are in place to satisfy the requirements of the Green Communities Act.
  • Net Metering Recovery Surcharge – This charge recovers the net metering credits given to customers who have installed net metering generation facilities.
  • Distributed Solar Charge – This charge recovers the costs associated with the Solar Massachusetts Renewable Target program.
  • Residential Assistant Adjustment Factor – This charge recovers the rate discounts provided to qualified low-income customers and costs associated with the Company’s arrearage forgiveness program.
  • Transition Charge – This charge recovers cost of past investments in generation and supply that were stranded through deregulation.

Bill Adjustments

These items can appear on your bill as a charge or a credit.

  • Revenue Decoupling Adjustment Mechanism – 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 energy efficiency programs.
  • Basic Service Cost True-up Factor – This charge recovers the difference between the amount charged to customers for Basic Service and the amounts paid to suppliers for such service.
  • Pension Adjustment Factor – This charge recovers costs associated with pension and post retirements benefits.
  • Tax Act Credit – Cost savings returned to customers as a result of the Tax Cuts and Jobs Act of 2017.