To understand energy choice, you’ll want to start by looking at a recent electric or gas bill. In most states, your energy bill is divided into 2 main parts: Delivery and Supply.
Just like in the example below. A residential electricity bill from PPL Electric Utilities in Pennsylvania highlights variable supply and delivery charges:
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(See Delivery details highlighted on the example bill above).
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1. Delivery (35%)
Distribution Charge: Charges for the use of local wires, transmission lines, and other services from your local utility company. Also referred to as (LDC) Local Distribution Company. Your local utility provides the following services: Delivery of electricity or gas to your home, billing, meter readings, and maintenance of power lines in case of emergencies. It's important to remember that the LDC bills you for both Distribution and Supplier charges together in one utility bill.
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2. Supply (65%)
Generation charge: The cost for the generation of electricity or gas from the source of where it is made (i.e. Dirty VS Clean power plants; nuclear, coal, oil, or gas VS, solar, and wind power generation). In some states, the energy supplier is displayed on your bill under supplier details as (ESCO) Energy Service Company, (EGS) Energy Generation Service, or Supplier. This is the largest, most important section of your bill, making up about 65% of your monthly bills.
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If you HAVE chosen an alternate electric generation supplier, that supplier is listed here. You can choose a new supplier at any time. Customers that have contracts with suppliers must wait until the contract period is expired to switch. Use your current supplier rate as your price to compare with other supplier offers when shopping for electricity.
If you HAVE NOT chosen an alternate electric generation supplier, the local utility charges a price-to-compare rate for supply by default. Use this price-to-compare rate to compare energy plans from other suppliers when shopping for electricity. This default price-to-compare rate changes based on market conditions and may increase unexpectedly resulting in a higher bill.
In addition to competitive rates, alternative suppliers can provide you with other energy services that are not offered by your LDC such as fixed-rate plans, and renewable-energy options.
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You can save on energy by switching to an alternative energy supplier here with SourceEnergyRates.com by utilizing our simple and secure energy comparison tool to find the best energy suppliers in your area. ​Source Energy Rates help you search for and sign up for an energy plan that is right for you. We have helped thousands of homes and businesses switch energy providers in minutes.
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