There are four main areas that make up the cost of your
Generation means the production of electricity. You will
pay electricity suppliers for the generation of electricity. We will charge you
for the Standard Offer Service (SOS) based on the rate at which we buy
electricity for our customers. Or, you can choose another energy supplier and
pay them directly.
Distribution is everything needed to deliver electricity
safely and reliably to your electric meter. It
covers the cost of maintaining, expanding and improving our electric system.
Transmission is the cost of transmitting electricity from
power plants over high-voltage lines and towers to the distribution system.
While we own some transmission facilities, all transmission in the region is regulated
by a regional transmission operator (RTO).
Both the distribution
and transmission costs are regulated.
Surcharges refer to taxes and other charges that we are
required to include on your bills. Some examples are Delivery Tax,
Environmental Surcharge and Gross Receipts Tax. The funds are collected by the
company and passed through to the appropriate government agency.
You can also learn more about how rates are determined by
reading our Rates 101 information.