Delaware PSC and DPA Help Customers Understand Their Delmarva Electric Bills

Ever wonder where your money goes on your electric bill? The Delaware Public Service Commission and Public Advocate are making it easier for customers to understand how electricity gets to their homes and what each part of their bill covers. Every monthly bill is made up of three main pieces: Supply, Transmission, and Distribution, and each plays a vital role in keeping the lights on.

1. Supply: How Electricity Is Made

The supply portion of your bill covers the cost of producing electricity. Customers can choose who supplies their power. Third-Party Suppliers give customers the freedom to shop for competitive rates. Customers should carefully compare the rates available, both in the short and longer term, as the rates of Third-Party Suppliers are not reviewed and approved in the same way as regulated utilities, like Delmarva Power & Light. Supply prices are determined annually and primarily influenced by energy market conditions, including the costs of producing electricity (for example, the cost of natural gas used at a generation plant). Supply prices usually make up the largest portion of a residential customer’s monthly bill. Here are some tips to reduce the amount of electricity you use.

These rates are approved by the Delaware Public Service Commission.

On your Delmarva Power bill, electric supply appears in the second section of the bill, labeled “supply charges.” Supply charges are calculated by multiplying the amount of electricity used (measured in kilowatt hours or kWh) by the price per kilowatt hour.

2. Transmission: Moving Power Where It’s Needed

Once electricity is generated, it may need to travel long distances to reach your home. For example, electricity coming from a generation facility out of state will need to travel much further than electricity generated close to home. The transmission portion of the bill reflects the overall cost of moving electricity to be delivered by Delmarva Power. This covers the high-voltage lines, poles, and transformers that move electricity from power plants to local systems, much of which is owned by companies other than Delmarva Power. Delmarva Power provides this transmission service for all customers in Delaware and is required to deliver power safely and reliably.

Transmission rates are approved by the Federal Energy Regulatory Commission (FERC).

On your Delmarva Power bill, transmission charges appear as “transmission capacity charge” under “supply charges.”

3. Distribution: Delivering Electricity to Your Home

Finally, the distribution portion covers the cost of delivering electricity from the regional transmission system to homes and businesses in Delaware. Delmarva Power owns and maintains the local poles, wires, meters, and technology that make this possible, and building and maintaining all this infrastructure takes substantial resources. This also includes maintenance and customer service costs to keep the system running efficiently.

On your Delmarva Power bill, distribution charges appear in the first section of your bill, labeled “delivery charges.” Distribution charges are calculated by multiplying the amount of electricity used (measured in kilowatt hours) by the price per kilowatt hour.

Also, included in the Delivery Charge on your Delmarva Power bill are public policy programs approved by the General Assembly like the Green Energy Fund, Renewable Portfolio Standards Charge and Low-Income Fund.

The Public Service Commission and the Public Advocate are committed to helping customers better understand how their energy dollars are spent. Breaking down the bill into these three parts helps show what it takes to generate, move, and deliver electricity across Delaware safely and dependably.

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The Delaware Public Service Commission was established to provide oversight of investor-owned public utilities in the State of Delaware. The Commission works to ensure safe, reliable, and reasonably priced electric, natural gas, water, and wastewater services. The Commission also has limited regulatory authority over telephone and cable television rates and services.

The Division of the Public Advocate advocates for the lowest reasonable rates, principally on behalf of residential and small commercial consumers, consistent with the maintenance of adequate utility service and consistent with an equitable distribution of rates among all classes of consumers.