Understanding Your Electricity Bill

Your first bill in a deregulated state can feel like alphabet soup. Here’s what it really means.

Two big parts:

  • Supply – The electricity itself (what you buy from your chosen supplier).
  • Delivery – The utility’s cost to move it through the wires to your business.

Common charges you’ll see:

  • Energy Supply – Your actual power cost (rate × usage).
  • Delivery Charges – Utility fees for transmission, distribution, and demand (peak usage).
  • Capacity / Demand – Extra charges if your business uses lots of power at once.
  • Taxes & Fees – State and local add-ons you can’t avoid.

Quick checks:

  • Does your bill match the contract you signed? If you agreed to a fixed rate, make sure there aren’t “surprise” extras.
  • Is the supplier name correct? Mistakes happen.
  • Compare this month to last year’s bill — if usage is the same but costs jumped, ask why.

Tips:

  • Track your bills for a few months to catch errors early.
  • If you see strange charges, call your supplier — good ones will explain.
  • Many utilities have online dashboards to make bills easier to read.

👉 Bottom line: Your bill has two parts — supply and delivery. Focus on the supply rate you chose, and always double-check it matches your contract.

Next: Types of Energy Contracts – how different deals change what shows up on your bill →

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