Electric Delivery Charge and Supply Cost: What Are They?

Your usage impacts both supply and delivery charges. Using less energy can help lower your bill.

What's the Difference Between Delivery and Supply? 

The delivery charge of your bill is made up of three main categories:

  1. Transmission
  2. Distribution, Operations and Service
  3. Public Policy

These components include operating, maintaining and upgrading the electric transmission and distribution systems, critical customer services, and state and federally mandated charges that fund financial assistance, energy efficiency and renewable energy programs.

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.

Your Delivery Charges 

There are several components that make up the delivery charge on your bill. 

Transmission

TransmissionLong

Transmission is the cost of building, maintaining and operating the regional transmission system that brings electricity from power generators to the local distribution system. These charges are federally regulated by the Federal Energy Regulatory Commission, the independent agency that regulates the interstate transmission of electricity.

Distribution, Operations and Service

DistributionLong

This is our core business – safely and reliably delivering power to your home or business. Beyond delivering the power to you, this service includes the cost of skilled employees that operate and maintain the local system of poles and wires and provide customer service. It also includes the cost of improvements to make the electric grid more resilient and reliable.

Unlike a flat charge for the delivery of a package, the delivery charges on your energy bill are driven by how much energy you use and can vary from month to month. 

Line items on your bill that fall into this category include:

  • Distribution Charge
  • Customer Charge

Public Policy

PublicPolicyLong

This portion includes costs mandated by the state and federal government for financial assistance and energy efficiency programs, purchasing renewable and carbon-free electricity, and funding solar and electric vehicle incentives to help make it easier to take advantage of clean energy options.

Through charges on your bill, you're paying to fund these programs, so we encourage you to take advantage of what's available to you.   

Line items on your bill that fall into this category include:

  • Stranded Cost Recovery Charge
  • Systems Benefits Charge

Your Supply Cost

SupplyLong

We purchase electricity from third-party suppliers that generate electricity at a power plant or generating station. This is a pass-through cost to customers with no profit to Eversource.  

What is a supplier?

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

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

How we determine the supply 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

See the latest rates