Decoding Your Monthly Utility Invoice

A commercial utility bill can be confusing. The most important thing to understand is the difference between "Supply" charges and "Delivery" (or "Pass-Through") charges.

Supply Charges: What You Can Control

• This is the cost of the actual electricity (measured in kWh) that you consumed.
• This is the portion of your bill that you can choose a supplier for.
• When you sign a contract with a third-party supplier, their rate replaces the utility's default "Price to Compare."

Delivery / Pass-Through Charges: What You Cannot Control

• These are the costs charged by your local utility (e.g., AEP Ohio, Duke Energy) for delivering electricity to your facility, maintaining the poles and wires, and other services.
• These charges are non-bypassable. You must pay them to your utility regardless of who your supplier is.
• Examples include: Transmission charges, distribution fees, and various riders (see our guide on the AEP Ohio Service Area).

The Goal of Procurement

The goal of energy procurement is to get the lowest possible price for your Supply Charges, as the Delivery Charges are fixed. By carving out this portion of the bill and forcing suppliers to compete for it, we can significantly reduce your overall energy spend.