Many electric bills have two main parts: one pays for the electricity, and the other pays for the wires that carry it to you. This guide covers what each part pays for, what your utility calls it, and why delivery can cost more than the power. It’s one of our guides to bills and savings.
What is a delivery charge on an electric bill?
A delivery charge pays to carry electricity to your home. Its biggest part, the distribution charge, covers the local wires, transformers, substations and other equipment that bring power from the high-voltage lines.[3,5] In Pennsylvania, it comes with a monthly customer charge for billing, meter reading and your meter.[5,6]
Supply is the electricity itself. Here’s how EIA splits the average US price of electricity in 2025, across homes, businesses and industry.[2,3]
- Generation, which is making the power. That’s the supply side.
- 56%
- Distribution, the local wires that reach your street.
- 30%
- Transmission, the high-voltage lines between power plants and your area.
- 14%
Homes usually pay more than big factories for each kilowatt-hour (kWh), the unit your use is measured in. EIA says that’s because it costs more to deliver power to homes and businesses than to industry.[2] So delivery’s share of your bill can differ from these national numbers.
- The electricity itself
- Wires, meter and billing
Supply vs. delivery charges: what’s the difference?
Supply pays for the electricity you use, and delivery pays to get it to you. Where there’s energy choice, you can shop for supply but not for delivery, because your utility delivers the power no matter who sells it.[1]
What it pays for
- Supply
- The electricity you use, made or bought for you
- Delivery
- Poles, wires, transformers, substations and meters, and their upkeep[5]
Who provides it
- Supply
- Your utility, or a supplier you pick where there’s energy choice
- Delivery
- Your local utility[1]
Who sets the price
Can you shop for it?
- Supply
- Yes, where there’s energy choice
- Delivery
- No[1]
How it’s billed
Who to call in an outage
- Supply
- Your utility, not your supplier
Transmission, the long-distance part of the trip, can land on either side of the bill. It counts as supply at ComEd in Illinois, and in Pennsylvania if you shop with a supplier. In Massachusetts, it counts as delivery.[5,8,13]
Find your answer
Who handles each part of your bill?
- “I pay one utility for everything.”
Your utility handles both parts.
Your utility makes or buys your power and delivers it, so both charges go to one company. Some bills don’t split them at all. Florida Power & Light, for example, lists a base charge, a fuel charge and a non-fuel charge instead.[17]
- “I picked an electricity supplier.”
Your supplier sells the power, and your utility delivers it.
- “My town or a community program buys my power.”
A community choice program supplies your power.
With community choice or municipal aggregation, a town, county or local program buys electricity for people in the area.[18] In California, the utility bills you for delivery and the program charges for the power, all on one bill.[19]
In California, you’ll also see a Power Charge Indifference Adjustment (PCIA) with the utility’s charges. It covers power the utility bought for you before you joined the program.[19]
- “I live in Texas and picked a retail provider.”
Your retail provider bills you for both parts.
- “My utility is a co-op or city-owned.”
Your co-op or city utility likely handles both parts.
What does the delivery charge pay for?
Delivery covers the local wires, your meter and billing and a few other costs, and most of it is billed by the kWh. Regulators in Pennsylvania and Massachusetts say delivery charges go up and down with how much electricity you use, and so do Con Edison and Eversource.[6,13,14,20] Each utility groups the parts its own way, but here’s what usually goes in.
- Distribution: building, running and repairing the local wires, including after storms.[2,5]
- Transmission, at utilities that bill it as delivery. In Massachusetts, for example, the Federal Energy Regulatory Commission (FERC) oversees these charges.[13,14] In Texas’s competitive areas, the Public Utility Commission of Texas regulates the wires companies’ rates, which cover transmission.[12]
- A fixed customer charge for your meter, meter reading and billing. It shows up even in a month you use no power.[21]
- Other charges. At Eversource, public benefits charges pay for state and federal programs such as energy efficiency and financial help.[14] In Massachusetts, transition charges pay off old power plant and contract costs from before utilities stopped making power.[13]
As of November 2026, fixed charges vary a lot: a few dollars a month at Texas wires companies, and about $24 at San Diego Gas & Electric (SDG&E).[9,22] California’s big investor-owned utilities bill a fixed Base Services Charge. At SDG&E, those costs used to be part of the per-kWh delivery price.[22]
Our grid guide shows how power travels from the plant to your outlet, one stretch at a time.
What is a distribution charge on an electric bill?
A distribution charge is the local part of delivery. It pays to carry power from the high-voltage lines to your home over poles, wires, transformers and substations.[5,23]
Some utilities use it as the name for the whole delivery line, such as “Distribution Service” at Dominion Energy Virginia.[24] Pennsylvania’s Public Utility Commission (PUC) calls that part of the bill the “delivery/distribution charge.”[4] The PUC regulates it, and the amount changes with how much electricity you use.[6]
What is delivery called on your utility’s bill?
Many bills call it delivery or distribution, but the labels and what they include vary by utility. Here’s what to look for in several states.
| Where | What to look for |
|---|---|
| Illinois (ComEd)Delivery Services | Look for “Delivery Services” next to “Electricity Supply.” ComEd puts its Transmission Services Charge in the supply section.[8] |
| New York (Con Edison)Delivery | The bill shows supply, delivery and taxes. Con Edison says delivery is based on how much energy you use.[20] |
| New York (NYSEG)Delivery Charge | Look for a “Delivery Charge” and a “Supply Charge,” plus a “Basic Service Charge” that appears even if you use no energy.[21] |
| Massachusetts (Eversource)Delivery | Delivery covers distribution, transmission and public benefits programs. Only the customer charge is fixed.[14] |
| Massachusetts (state bill guide)Delivery | Delivery includes transmission, transition, distribution and other delivery charges. Several smaller costs are folded into the per-kWh distribution charge and aren’t listed as their own lines.[13] |
| New Jersey (PSE&G)Delivery charges | Delivery is a fixed monthly service charge plus per-kWh charges. Transmission sits under supply charges.[25] |
| PennsylvaniaDistribution | Look for a distribution charge and a customer charge. If you shop, transmission moves into your supplier’s price.[5,6] |
| Virginia (Dominion Energy)Distribution Service | Look for “Distribution Service” for the local wires, and “Electricity Supply Service” for generation and transmission, including fuel.[24] |
| California (SDG&E)Electric Delivery | Look for “SDG&E Electric Delivery,” with a fixed Base Services Charge, next to generation charges from SDG&E or a community choice program.[22,26] |
| Texas (competitive areas)TDU delivery charges | Look for “TDU delivery charges” from your wires company, but only if your retail provider lists them separately. Some fold them into one price per kWh.[12] |
| Florida (FPL)No split | The bill has no separate supply and delivery lines. Instead, you’ll see a fixed base charge, a fuel charge and a non-fuel charge that covers making and delivering power.[17] |
Rules can change. Your utility or your state’s utility commission has the latest.
Why is my delivery charge higher than my supply charge?
Delivery can cost more than supply because local wires cost a lot to build, run and repair.[2] That’s not unusual: Massachusetts regulators’ own example shows delivery at 16 cents per kWh and supply at 15 cents.[13]
- Homes cost more to serve. EIA says it costs more to deliver power to homes and businesses than to industry.[2]
- The wires need upkeep. Building, running and maintaining lines costs money, and so do storm repairs and protection from hackers.[2]
- Supply can be sold at cost. Illinois’s big utilities charge for supply with no markup or profit, and Con Edison says it passes its supply cost on to you as is.[20,27]
- Taxes can sit inside delivery. Con Edison says nearly a quarter of its delivery charge goes to local taxes on its energy equipment.[20]
- The fixed charge weighs more in a small month. When you use little power, the fixed customer charge becomes a bigger share of the bill.[21]
Delivery rates change on their own schedule. In Pennsylvania, the PUC sets them in rate cases (formal reviews of what a utility may charge), and they generally stay stable for years.[4] In Massachusetts, some delivery rates may change every year.[13]
Even when the rate holds steady, your delivery amount moves with your use. To check whether your whole bill looks normal, you can estimate what your monthly bill should be.
What are TDU delivery charges in Texas?
TDU delivery charges are what Texas wires companies, called transmission and distribution utilities (TDUs), charge to move power from the plant to your home.[12] In the state’s competitive areas, your retail provider (the company you buy power from) passes them on, either as separate lines or inside one price per kWh.[12]
The Public Utility Commission of Texas (PUCT) regulates the TDUs’ rates, but it doesn’t set your provider’s price.[12] The main TDUs include Oncor, CenterPoint, AEP Texas and TNMP.[9]
AEP Central
- Customer charge (per month)
- $1.27
- Metering charge (per month)
- $1.97
- Delivery on a 1,000 kWh month
- $60.15
AEP North
- Customer charge (per month)
- $1.27
- Metering charge (per month)
- $1.97
- Delivery on a 1,000 kWh month
- $59.00
CenterPoint
- Customer charge (per month)
- $2.11
- Metering charge (per month)
- $2.79
- Delivery on a 1,000 kWh month
- $70.23
Oncor
- Customer charge (per month)
- $1.48
- Metering charge (per month)
- $2.58
- Delivery on a 1,000 kWh month
- $72.73
TNMP
- Customer charge (per month)
- $1.70
- Metering charge (per month)
- $5.86
- Delivery on a 1,000 kWh month
- $85.27
Entergy Texas, SWEPCO, SPS and El Paso Electric sit outside the Electric Reliability Council of Texas (ERCOT) region, and the PUCT regulates their rates directly.[12] The PUCT doesn’t oversee rates at co-ops and city-owned utilities.[12]
Can you lower or avoid delivery charges?
You can’t shop for delivery or opt out of it, but using less power shrinks the part billed by the kWh.[1,6] Switching suppliers usually changes your supply price, not your delivery charges.[1]
Some utilities also offer delivery rate plans, such as ComEd’s Delivery Time-of-Day rate. It charges the least for delivery overnight and the most from 1 to 7 p.m., so it helps only if you can shift your use.[28] At ComEd, your home and heating type set your delivery class, which also affects your rates, so ask your utility about your class and its plans.[28]
Some low-income discounts lower delivery charges too. At SDG&E, as of November 2026, the CARE discount program cuts the fixed charge to about $6 a month.[22]
For more ideas, see our ways to lower your bill and get help paying it. Our page on shopping for your electricity supply explains how switching works where it’s offered.
How Public Grid helps
Delivery charges come from your utility, so Public Grid can’t change them. But we can help you keep an eye on them: connect your utility account, and we’ll track your usage and bills. It’s free and needs no hardware.
Common questions
Switching suppliers doesn’t change who delivers your power, so you keep paying your utility’s delivery charges. Illinois’s Plug In Illinois site, for example, says everyone ComEd serves pays them, whether they buy supply from ComEd or from a supplier. In Texas, a new provider may fold delivery into its price per kilowatt-hour, but your wires company stays the same.
Many bills include a fixed customer charge for your meter, meter reading and billing, and it shows up even in a month you use no power. NYSEG calls it a basic service charge, and Florida Power & Light calls it a base charge. At San Diego Gas & Electric (SDG&E), as of November 2026, it’s about $24 a month for most homes, about $12 with FERA and about $6 with CARE, its low-income discounts. SDG&E calls it the Base Services Charge, and it says rooftop solar credits can’t offset it.
Many do. PSE&G in New Jersey, for example, still delivers your gas if you buy it from another supplier. Ohio also lets you choose the supply part of your gas service. The labels and how delivery is figured vary by gas company, so check your bill’s own guide.
Yes, if the electric account is in your name. Delivery is part of the bill whether you rent or own. If your building has one master meter, the owner gets the utility bill, and you won’t see supply and delivery charges yourself. If your building is submetered, your bill may come from the building or a billing company instead.
Sources · 29
- 1Can customers choose their electricity supplier? · U.S. Energy Information Administration
- 2Electricity explained: Factors affecting electricity prices · U.S. Energy Information Administration
- 3Annual Energy Outlook 2026, Table 8: Electricity supply, disposition, prices, and emissions (April 2026) · U.S. Energy Information Administration
- 4PUC Alerts Consumers of December 1 Electric Price Changes (November 24, 2025) · Pennsylvania Public Utility Commission
- 5Understanding Your Electricity Bill · PAPowerSwitch (Pennsylvania Public Utility Commission)
Show all 29Show fewer
- 6Glossary · PAPowerSwitch (Pennsylvania Public Utility Commission)
- 72024 Average Monthly Bill: Residential (Table 5A) · U.S. Energy Information Administration
- 8Price to Compare: ComEd · Plug In Illinois (Illinois Commerce Commission)
- 9Transmission and Distribution Utility Rates (residential, as of November 1, 2026) · Public Utility Commission of Texas
- 10PUC Alerts Consumers to June 1 Electric Price Changes and Higher Summer Energy Costs (May 20, 2026) · Pennsylvania Public Utility Commission
- 11Electric Utilities · Utah Office of Consumer Services
- 12Understanding Your Electric Bill Charges · Public Utility Commission of Texas
- 13Understanding your electric bill (updated July 20, 2026) · Massachusetts Department of Public Utilities
- 14Electric Delivery and Supply Charges Explained · Eversource
- 15How are electric generation rates set? · Public Utilities Commission of Ohio
- 16Storm Resources: Utility Contacts · Public Utility Commission of Texas
- 17Understanding your bill: residential customers (October 2026) · Florida Power & Light
- 18Municipal Aggregation · Plug In Illinois (Illinois Commerce Commission)
- 19Consumer Information on CCAs: Frequently Asked Questions · California Public Utilities Commission
- 20How to Read Your Bill · Con Edison
- 21Billing Glossary · NYSEG
- 22Electric billing: Base Services Charge · San Diego Gas & Electric
- 23Glossary of Terms · Energy Choice Ohio (Public Utilities Commission of Ohio)
- 24Rates 101 · Dominion Energy Virginia
- 25Understanding Your PSE&G Bill: For Residential Customers (August 2025) · PSE&G
- 26Your Charges Explained · San Diego Gas & Electric
- 27Understanding the Price to Compare · Plug In Illinois (Illinois Commerce Commission)
- 28Delivery Time-Of-Day Pricing (DTOD) · ComEd
- 29Substantive Rule §25.475: General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers · Public Utility Commission of Texas
