Understanding Your Bill

As a resident of Maryland or Washington DC you can choose your electric supplier - but what does that mean exactly?  Deciphering your electric bill can be confusing! 

Below is a brief explanation of the different components of electricity delivery and what to look for when reviewing your monthly utility bill:  

Charges

Overview

There are three main components that comprise your monthly utility bill: Generation, Transmission, and Distribution.  When you choose to switch electric suppliers the only change to your bill will be found in the Generation section (often called the Energy Charge). 

On average, the Generation section of your utility bill constitutes about 75% of the total monthly cost. Your local utility remains responsible for Distribution, which includes billing, maintenance, and service issues.  (Below is a scanned Pepco bill, showing the three components)

Generation

This is the cost of energy produced by a facility (power plant) before being delivered to the "grid." This cost is dependent upon the type of power, time of year and the length of the contract, and how these variables are impacted by commodity markets. When you switch your electric supplier from your local utility to a competitive supplier (like Clean Currents), this is the section of your electric bill that will change.
 

Transmission

This is the cost to bring high-voltage electricity from power plants to distribution points near to you and includes the cost of high-voltage power lines and towers, as well as monitoring equipment.

Distribution 

This charge is the cost to deliver electricity through power lines strung on utility poles, across transformers, to where you use it. This charge also includes repair crews and emergency services. Basically, this charge reflects any extensions from the transmission grid to your home and the maintenance of keeping you connected to the grid.
 

Service Options

Fixed Rate

Rates that are fixed lock in generation and transmission for a set period of time. Clean Currents offers fixed rates for either 1 or 2 years.  Fixed rates offer protection against price spikes and seasonal rate increases throughout the length of your contract.  To see more about the benefits of fixed rates over variable rates, click HERE.

Standard Offer

Under the rules of competitive energy markets, local utilities offer a "standard offer service".  If customers do not elect to switch to a competitive electric supplier (like Clean Currents) they will receive power from their local utility and be charged the standard offer rate.  These rates are set by "rate class" and are priced based upon the timing set by the utility.

Power Options

Renewable Power vs. Standard Power

The beauty of a deregulated energy market is customer choice.  In Maryland and Washington DC, you have a choice when it comes to not only what company supplies your electricity, but also the source of that power. 

Standard power produced in the Mid-Atlantic region comes primarily from fossil fuel sources - mainly coal.  With Clean Currents, you can choose for your home or business to be powered by local or national wind power.  We do this by "bundling" your power usage with Renewable Energy Certificates (RECs) in order to offset the CO2 emissions.  To learn more about RECs, click here.

Click HERE to enroll in Clean Currents Wind Power