Your business has two types of charges on its electric bill, power supply and delivery service.
Your power supply charges include the costs to create and move the electricity over high-voltage transmission lines.
Your energy costs are directly related to the amount of electricity you use, measured in kilowatts (kW) and/or kilowatt-hours (kWh), and the time of year when you use it. For example, the price may be lower during the winter months (October – May) because demand is usually lower.
During summer months (June -September), the price may increase because demand is usually higher. The increased demand for electricity makes it more expensive to create or buy. Higher summer prices encourage people to limit their use, helping minimize everyone’s costs.
Delivery service charges are the costs to provide you with services and local energy distribution. They include:
- System Access: A fixed cost that covers metering and billing.
- Distribution: An adjusted cost based on how much electricity you use. This includes electricity delivery from the transmission system to your business and the necessary equipment, maintenance and operating expenses.
- Energy Optimization: As part of Michigan’s energy laws, a monthly per meter surcharge is added to support Energy Efficiency programs. These programs help avoid costly investments in new energy sources by reducing energy use.
- Other charges: These may vary depending on your business and energy use.