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What supply vs delivery really means on your bill

Rate literacy

Supply is the energy itself; delivery is the wires + meter + outage response. Only supply changes when you switch suppliers. The line-by-line decoder.

Featured infographic

How a US electric bill splits into supply vs delivery

Supply (kWh times rate) is the shoppable pool. Delivery is the regulated pool. Switching suppliers moves only the supply line.

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Every US electric bill splits into two structural pools. Supply is the kWh you consumed multiplied by your contracted supply rate. Delivery is the regulated wires, meter, and outage cost. In deregulated states, supply is shoppable and delivery is fixed. Switching suppliers changes only the supply line. Delivery, capacity, taxes, and riders stay exactly the same. Here is the line-by-line decoder so you can find each component on your own bill.

What is in the supply pool

Supply covers the actual energy. The line item is denominated in kWh times your contracted supply rate. On a typical $148 monthly bill, supply runs $80 to $95 (roughly 54 to 64 percent).

Suppliers compete on the supply line in deregulated states. The PUC licenses suppliers but does not set their rates. A clean fixed-rate lock signed in August through October typically prices supply 8 to 14 percent below the utility default.

What is in the delivery pool

Delivery covers the wires, meter, transmission, capacity, ancillary services, customer charge, taxes, and riders. The line items are regulated and identical for every customer in the same delivery zone.

Major delivery components: transmission (3 to 7 percent of bill), distribution (15 to 22 percent), capacity (10 to 18 percent), ancillary and riders (5 to 10 percent), taxes plus customer charge (3 to 6 percent). All set by the utility tariff filed with the PUC.

What changes when you switch suppliers (and what does not)

Changes: the supply line price per kWh, and the supplier name on the bill. That is it.

Stays the same: the utility name on the bill envelope, the meter, the wires, the outage response, the delivery tariff, the capacity charge, the riders, the taxes, the service quality, the timely-payment programs.

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Common questions

Quick answers from the editorial desk

Can I shop the delivery portion of my bill?
No. Delivery is regulated by the state PUC and is identical for every customer in the same utility delivery zone, regardless of supplier choice. Only supply is shoppable in deregulated states.
Why does my delivery charge stay the same when I switch suppliers?
Because the wires, meter, and outage infrastructure are owned and operated by the regulated utility. The utility tariff sets the delivery cost. Suppliers do not touch infrastructure; they only sell the kWh.
What is the capacity charge — supply or delivery?
Delivery. Capacity is set by the regional grid operator (PJM, ERCOT, ISO-NE) via auction and flows into the utility delivery tariff. Locking the supply rate does not insulate capacity. Reducing your peak demand does.
What happens to my service if I switch suppliers?
Nothing visible. The truck that responds to your outage is still the utility truck. The meter on the wall is still the utility meter. The only line item that changes is the supply rate per kWh on your bill.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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