Understanding Delivery Charges on Your Electricity Bill

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In this column, we have been talking about how to reduce Supply side electricity costs.  However, there is another significant charge on your electricity bill —- Delivery Services.

Eversource is the primary Delivery Service in New Hampshire.  Unitil, NH Electric Co-op, and Liberty Utilities are other Delivery Services.  The Delivery Service Utility you have depends on where you live.

Remember the Delivery Service charge is separate from the Supply Source charge.  As a result of legislation passed in New Hampshire in 1996, you have the option to change Suppliers while keeping the same Delivery Service.

This article will help you understand more about the Delivery Services charge you see on your electricity bill.

Delivery Services

Customer Charge 3-phase. This fixed charge is for the electricity service. It is per customer/meter and is unrelated to the amount of electricity you use.  Basically, it is what it is.

The remaining categories of Delivery Services are based on the amount of electricity you use.  These include charges for:

  1. Transmission—bringing the electicity from its source to the local utility.
  2. Distribution — This is the core business of your local utility.  It involves maintaining and improving the local grid (power lines, poles, restoring electricity after storms, etc.) to get the electricity from the local utility to your home.
  3. Stranded Cost and System Benefit Charges — these are charges mandated by the New Hampshire Legislature or the Federal Government.  They include such things as recouping stranded costs for outdated utility infrastructure, financial assistance for low income users, and energy efficiency programs such as NHSaves.

The charges for Transmission, Distribution, Stranded Cost and System Benefit are all based on the amount of electricity you use each month.  So you can reduce these charges by buttoning up your home, using Energy Star appliances, and, basically, using less electricity to meet your needs.

For more information about Supply Sources and Delivery Charges on your electric bill, stop by the Social Responsibility Table after church.