The short answer
Supply is what Seenra shops. Delivery is what your utility owns.
A US residential electricity bill is structurally split into supply and delivery — but most bills do not label them that way. Generation, distribution, transmission, capacity, riders, customer charge, sales tax — each line either belongs to the supplier (shoppable) or the utility (regulated). This guide decodes every line that appears on a typical residential bill, sorts them into the two pools, and shows which ones move when you switch suppliers.
The supply pool — what the supplier bills you for
The supply line is your kWh × the per-kWh supply rate. On a typical residential bill it represents roughly 55–60% of the total. The wording on the bill varies — "Generation Supply", "Energy Charge", "Price-to-Compare", or just "Supply" — but the underlying mechanic is the same.
The supply rate is the only line that changes when you switch suppliers. The utility takes the kWh figure from the meter, multiplies by the supply rate, and applies the supplier-of-record on the account. The supply portion is then billed under either the utility's standard offer or a competitive supplier's contract rate.
Some bills also include a supplier-side customer charge — typically $0–$10/mo. Reputable competitive suppliers disclose this in the contract.
The delivery pool — what the utility bills you for, regardless
Delivery is the wires, meter, capacity, and regulatory pass-throughs. On a typical residential bill it is roughly 40% of the total. Every line in this pool is set by the utility tariff, approved by the state PUC, and identical for every customer in the same delivery zone.
The biggest line is distribution — the cost of moving kWh from the local substation to your meter. After distribution comes transmission (the bulk-power network from generators to substations), capacity reservation (paid to the regional grid operator), state riders (universal service fund, energy efficiency programs, etc.), and the customer charge.
None of these lines move when you switch suppliers. They flow through to your bill at the regulated tariff regardless.
Infographic
Supply (~62%) is shoppable; delivery (~38%) is regulated
Why the capacity charge is the silent compounder
The capacity charge is one of the more confusing line items. It pays for the regional grid operator (PJM, ERCOT, ISO-NE, etc.) to ensure there is enough generation capacity available to meet peak system demand. The capacity charge is a delivery-side line item, set once a year via the regional capacity auction, and locked in for 12 months.
Capacity charges have been the silent compounder of US electricity bill inflation since 2022. PJM's 2026 capacity auction cleared at the highest price in a decade. That clearing price flows into delivery-side bills with a 6-to-18-month lag.
Locking the supply rate does not insulate the capacity charge — that part of the bill keeps moving with the regulated tariff regardless of who supplies your kWh. The lock only stabilises the supply-side.
Infographic
PJM capacity auction clearing price — recent years
Riders, surcharges, and taxes — where regulators add cost
State riders are mandated pass-throughs that fund things like universal service funds, energy efficiency programs, and renewable portfolio standards. They are typically 2–7% of the total bill. They are not negotiable.
Sales tax sits on top of the supply + delivery total in most states. A few states exempt residential electricity from sales tax; most do not. Sales tax is regulated, not negotiable.
A small customer charge (the meter and account-management fee) is also a fixed monthly cost that does not move with consumption. It typically runs $5–$12 on residential accounts.
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