As a resident of Maryland, Washington, DC, or Pennsylvania 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:
There are three main components that comprise your monthly utility bill: Generation, Transmission, and Distribution. When you choose to switch electric suppliers, your new supplier is responsible for the Generation & Transmission portion of your bill. These two sections are often referred to as “Supply Charges”. The Clean Currents rate which you select upon enrollment will replace both the Generation & Transmission charges from your utility. There are no other charges or fees associated with making the switch to Clean Currents. The Distribution portion will not change and will continue to go directly to the utility.
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)
This is the cost of energy produced by a facility (power plant/wind farm) 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 electricity supplier (like Clean Currents), this section will be replaced by the Clean Currents rate you select upon enrollment.
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. This section will also be replaced by Clean Currents rate you select upon enrollment.
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. Regardless of what company you choose to supply you with electricity, your local utility will continue to charge you this portion of your bill.
Maryland, Washington, DC, and Pennsylvania have deregulated electricity markets. Residential and commercial customers in deregulated electricity markets can elect to switch to a competitive electricity supplier (like Clean Currents). But if you do not select a competitive electricity supplier, your local utility will supply you with their “standard offer service”. These standard offers are seasonally adjusted unlike Clean Currents wind power rates, which are fixed for one or two years.
Renewable Power vs. Standard Power
The beauty of a deregulated electricity market is customer choice. In Maryland, Washington, DC, and Pennsylvania 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 to be powered by clean, renewable wind power at your home or business. To learn how you can switch to Clean Currents wind power.