I cant believe that I have to pay the gas company a delivery charge. What the hell are they delivering? Back in the day you had to pay for oil to be delivered. How do they deliver electricity?
Its a scam I tell ya. Just like the phone companies used to charge everyone a tax of about $1.25 that was from a bill passed by congress in the early 1900's. It wasnt changed until last year. Everyone had the charge removed from their accounts but a new charge was applied. Some sort of recovery fee. Mine is $1.24. Go figure!
Utility companies are providing two services. Obviously they produce electricity. They also deliver that electricity through their power lines. The distinction is not always obvious. However, we are all allowed to buy our electricity through other sources (called a supplier). The rates vary from supplier to supplier (utility company's also publish their rates as well).
If you are diligent enough, you can find a supplier that will sell you their electricity less expensive than your utility company. The problem is, the supplier doesn't own the power lines to get the electricity you just bought, to you. Therefore, the supplier utilizes the power lines provided by the utility company and you pay the utility company a fee, based on your kwh used, to deliver the electricity to you through their power lines.
The total cost of supplier charge (the actual electricity) plus the utility charge (the delivery fee) can and does work out cheaper (very often) than buying your electricity from your utility company.
Regulations a few years ago made this scenario possible. Prior to it, the utility companies were legal monopolies. This was a way to allow the consumer to 'shop' for electicity the same way you shop for gas for your car or oil for your boiler.
Hopefully regulations will be passed to do the same for cable tv. I know I'm stuck with the only company that services my area. I'd like to comparison shop, but I'm not allowed.
FYI, this explanation in no way, shape or form endorses the exhorbitant fees I get billed for my electric either. However, my kwh seems to be less than you guys.
swimmer