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Changes to Your Energy Bill - Michigan Energy Choice
Customers will also see separate charges for both supply and delivery on their bill
starting in January. This is in an effort to help you understand your energy
costs better.
You will see charges for your energy (power) supply listed as:
- Energy Charge - Energy is a variable charge associated with the amount
of electric supply your business uses. Electricity is measured in kilowatt-hours
(KWH). One KWH is equivalent to using ten 100-watt light bulbs for a period of one
hour. You are charged for each KWH of electricity you use.
- Power Cost Adjustment - The Power Supply Cost Adjustment accounts for annual
fluctuations in your electric supplier's costs of producing or purchasing electricity
to meet your needs. It appears as a credit or charge on your bill, based on how your
supplier's actual costs compare to the Energy Charge.
You will see charges for your energy delivery (distribution) as follows:
- Energy Charge - Similar to your supply energy charge, this cost is measured
in KWH and based on your actual use to deliver energy to your business.
- Customer Charge - This is a fixed charge to cover those costs of providing
safe, reliable electric service. These costs do not change based on your usage. This
charge covers the costs of owning, operating and maintaining electric facilities and
providing customer support.
If you choose to buy your electric supply from an Alternative Energy Supplier, you will
receive two electric bills-one from the AES for energy supply and one from Wisconsin Public
Service for delivery service.
Although the charges are split, the total amount of your bill has not changed at this
time. In the future, if you choose an Alternative Energy Supplier as part of the new
Michigan Energy Choice program, the electric supply portion of your bill may change.
The local delivery service charges will not change.
