The two halves of a bill
Supply covers the generation of power, or the purchase of it from the wholesale market. EIA says the cost of generating electricity is the largest component of the price of electricity. It rises and falls with fuel prices, with weather and with the cost of power plants.
Delivery covers the wires and everything that keeps them working. EIA lists construction, operation and maintenance of the transmission and distribution system, including repairs after accidents or extreme weather and better cybersecurity. Delivery also includes a fixed monthly customer charge on many bills, which you pay even if you use little.
Your bill may show the two parts separately, as supply and delivery, as generation and distribution, or as energy and delivery. Some bills show one combined rate and no split at all, especially from utilities that provide both services.
An example with made-up numbers
Take a home that used 900 kWh in a month. Say supply is 9 cents per kWh, delivery is 6.5 cents per kWh, and the delivery side also has a $12 customer charge.
| Part of the bill | How it is charged | Amount |
|---|---|---|
| Supply | 9 cents x 900 kWh | $81.00 |
| Delivery, usage | 6.5 cents x 900 kWh | $58.50 |
| Delivery, customer charge | Flat monthly | $12.00 |
| Total before taxes | $151.50 |
In this example delivery is $70.50 of the $151.50, or about 47 percent. The split differs a lot from place to place. These numbers are not from a real account.
Who sets each price
| Kind of market | Supply | Delivery |
|---|---|---|
| Regulated utility (most of the country) | The utility, under rates a regulator approves, or a municipal board or co-op board | The same utility, under approved rates |
| Retail choice state | The retail supplier you pick, at the price in its plan | The local delivery utility, under approved rates |
In a state with retail choice, the delivery company is set by where you live, and you cannot switch away from it. Your bill passes its charges through. See the states where you can choose a supplier.
A real example: Texas delivery prices
In the competitive part of Texas, the delivery company is a separate business from your retail electric provider. EIA data show what the largest ones charged on average in 2025 for delivery alone.
| Delivery company | Homes | Delivery cents per kWh | Delivery bill a month |
|---|---|---|---|
| Oncor Electric Delivery | 3,545,814 | 5.64 | $62.35 |
| CenterPoint Energy Houston Electric | 2,529,039 | 5.41 | $60.74 |
| AEP Texas Central | 793,896 | 5.91 | $68.16 |
| Texas-New Mexico Power | 237,930 | 7.09 | $81.64 |
| AEP Texas North | 158,488 | 5.86 | $57.47 |
| City of Lubbock | 94,738 | 6.31 | $55.17 |
Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), delivery-only residential service. These are 2025 averages, not tariff rates.
These are the amounts that sit on the delivery side of a Texas bill. A provider competes on the energy part. Our guide to the Texas delivery company explains who these companies are.
What you can and cannot change
- Where retail choice exists, you can compare supply prices and plan terms. Delivery will not change when you switch.
- Where it does not, you can still lower the bill by using less energy, moving use to cheaper hours on a time-of-use plan, or asking for a lower-cost rate plan.
- On either side, usage is the part you control most. A kWh costs you supply plus delivery.
Compare the all-in price
Names for the same two parts
Supply may appear as energy, generation, commodity or power cost. Delivery may appear as distribution, transmission, wires or customer charge. Riders and adjustments, such as a fuel adjustment, usually sit with one side or the other. Large business customers can also see a demand charge on the delivery side.
Sources and further reading
Frequently asked questions
What is the difference between delivery and supply on an electric bill?
Supply is the cost of the electricity itself. Delivery is the cost of carrying it to your home, maintaining the lines and meters, and restoring power after outages.
Can I choose my supplier but not my delivery company?
Yes, in states with retail choice. You pick the retail supplier, while the local delivery company is set by your address and stays the same.
Why is my delivery charge so high?
Delivery covers poles, wires, meters and crews, which cost more in some places than others. Storm repairs, new construction and upgrades to older equipment also raise it. The regulator reviews those costs when rates are set.
Does a fixed customer charge count as delivery?
On most bills, yes. It is a flat monthly charge for being connected, and you pay it regardless of use.