National Grid
Electricity Delivery Here are definitions for some of the terms you may see in your bill.
  • Basic Service—A charge to cover costs for meter reading, billing, equipment and maintenance. This charge is the same regardless of how much energy is used during the billing period.

  • Electricity Delivery—Our charges for transporting electricity across our distribution system to your home, whether it is purchased from us or another supplier.

  • Delivery Adjustment—An adjustment for Standard Rate Service customers which provides partial financial protection against the fluctuations between actual cost and the forecast cost of electricity supply upon which rates are established. We do not earn a profit from the electricity supply that we obtain for our customers. Effective January 1, 2012 through February 29, 2012 the Delivery Adjustment will consist of the CAC only.

  • Merchant Function Charge—A charge that is applied to the customerís bill when the customer receives electricity supply from National Grid. This charge includes costs associated with commodity related credit and collections, commodity related uncollectible expense, electric supply procurement costs and working capital for electric supply. This charge is applied to the Electricity Supply portion of a customerís bill. This charge will not be billed if the customer chooses and alternate supplier.

  • SBC/RPS (System Benefits Charge/Renewable Portfolio Surcharge)—These charges reflect costs associated with mandated public policy programs - low income assistance, energy efficiency programs, and certain research and development programs including the advancement of renewable energy resources.

  • Transmission Revenue Adjustment—A rate mechanism that compares actual transmission service revenue received by us with the forecast transmission service revenue used, in part, to develop electric delivery prices. As a result of the monthly comparison, a difference determined in excess of the forecasted transmission revenue is refunded to customers, and a difference determined to be less than the transmission revenue is collected from customers.

  • Tariff Surcharge—New York State and many local municipalities impose taxes on our revenue. These operating costs are recovered through a tariff surcharge applied to all rates and charges and may vary among taxing municipalities within our system area.

  • Sales Tax—In some areas we are required to collect state and local sales taxes. Some school districts also impose taxes.

  • Billing & Metering Services—Charges that are already included in the Delivery Service charges of your bill. Billing is a charge to cover the calculating and rendering of your bill. Metering is a charge to cover the procurement, installation, maintenance and reading of the meter.

  • Legacy Transition Charge (LTC)—An adjustment to bills of all delivery service customers reflecting the costs, or benefits, of electricity supply contracts the Company entered prior to June 1, 2001. For residential customers, the LTC also includes the benefit of low cost hydropower and a Residential Consumer Discount payment, both from the New York Power Authority (NYPA).

  • Electricity Supply Reconciliation Mechanism (ESRM)— A mechanism that reconciles electricity supply revenues for the month to the market cost of electricity purchased by the Company. Costs in excess of revenues are collected from customers and revenues in excess of costs are credited. For most residential and small general non-demand service, the ESRM includes the cost of benefit of hedging contracts the Company entered into on their behalf.