How to Read Your Energy Bill

We understand that there’s a lot of information on your energy bill. As your trusted energy partner, we want to make sure you understand key terms found on your business’ energy bill, as well as the charges you’re paying each month.

Terms to Know

Below are a few key terms that might appear on your bill:

  • Transmission – a charge for delivering electricity over network lines and equipment from the supply source to the customer’s point of delivery.
  • Distribution – utility charge to transfer the energy from transmission to your home and business.
  • Capacity – a charge that recovers costs associated with system capacity needed to meet peak system demand. The charge is typically based on the customer’s peak demand (also known as energy usage).
  • Supply (generation) – the charge, normally per kWh or Mcf, for energy used during the bill period.

Charges Included on Your Bill

If you use an energy supplier, like AEP Energy, for your business’ energy, the utility and supplier are responsible for different portions of your bill. You may not always see the items listed above on your bill, but they are components that determine your overall bill cost.

While it varies by utility, most utilities charge distribution, utility tariffs (like energy efficiency rebate programs, energy grid modernization fees, etc.) and a customer charge (a fee for keeping an energy meter on your building).

Generally, your energy supplier fee consists of generation, transmission (however, in Ohio transmission is charged from the utility), capacity, renewable portfolio standards (RPS), ancillary fees and line loss charges. It’s important to note that the supplier fees aren’t added on just because you’re working with a supplier. If your utility supplied your business with energy, the fees listed above would still be factored into your energy price, however it would come from your utility instead of a supplier. As an AEP Energy customer, you’ll always see our logo on your bill.

We’re Here to Help

At AEP Energy, we want you to feel confident about your business’ energy supply and informed about the payments you make each month. If you are a current customer and have questions about your bill, call your Account Management Team at 1-888-924-7111. If you’re interested in joining the AEP Energy family, click here.

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