The Generation (Supply) portion of your electricity service is OPEN to market competition. This is approximately 60-70% of the total cost.
The Distribution service remains regulated and is guaranteed by the public utility commission.
Energy – this is the actual commodity of electricity, and is the largest portion of your supply cost. This cost of the commodity fluctuates with the price of the fuel source (e.g. natural gas, coal, nuclear) used by the power plant where the electricity is generated.
Capacity – refers to the amount of electricity, measured in kW, required to meet a customer’s expected load during peak demand periods. The capacity portion of your supply charge pays for the access to demand necessary to meet your profile requirements.
Congestion – the cost from the ISO (Independent System Operator) to the market participants to utilize a congested path.
Ancillary Charges – the additional costs required to deliver electricity to end-users and to maintain system reliability. These include automatic generation control, reserves, voltage support, and black start.
RPS (Renewable Portfolio Standards) – the cost for the portion of your power, which is mandated to come from a renewable source.