What is an electricity delivery charge?

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asked Apr 4, 2019 in Other-Finance by FTuga197 (330 points)
What is an electricity delivery charge?

1 Answer

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answered Apr 4, 2019 by Larry S (42,350 points)
An electricity delivery charge on your electric bill is a fee that is charged to deliver the electricity from the electricity generating plant to your home.

To get electricity from the electric generation plant to your home or business it takes several electric transformers and miles upon miles of wires and lots of electric poles and equipment for that electricity to travel on to reach your home or business.

The electricity delivery charge is used to cover the cost of maintaining and repairing, upgrading that equipment which is costly.

Some large electric transformers cost $1 million dollars and it cost millions of dollars to purchase and maintain all that equipment that delivers electricity safely to your home.

So the electric utility company charges those fees for a delivery charge to maintain and buy new equipment to keep the electricity grid reliable and deliver that electricity power to you.

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