Explanation of Charges

Customer Charge: 

A monthly fixed charge which applies to all customers. It is designed to recover costs related to metering, meter reading, billing and other administrative costs. 

Distribution Energy Charge: 

Recovers the cost of delivering electric power over the MGED's local distribution system to the customer's location, including all costs of owning, operating, maintaining and administering the distribution system. The Distribution Energy Charge applies to all kilowatt-hours (kWh) sold under this rate. 

Purchased Power Charge:

Recovers the cost of the electric power produced at power plants or purchased from the wholesale market and transported to the MGED's service territory. This charge covers the general categories of expenses including fuel or energy costs, transmission costs, capacity and other services costs. The Purchased Power Charge applies to all kilowatt-hours (kWh) sold under this rate. 

Purchased Power Adjustment - PPA:

The Purchased Power Charge shall be adjusted periodically to reflect changes in the cost of purchased power as provided in the Purchased Power Adjustment, M.D.P.U. Schedule No. 168. The Purchased Power Adjustment applies to all kilowatt-hours (kWh) sold under this rate.

Prompt Payment Discount:

All customers are eligible for the Prompt Payment Discount. This includes all natural gas and electric customers and on both commercial and residential charges. This is a 15% (electric) and 10% (gas) discount on customer and distribution charges if payment is received by the due date. No discount allowed when arrears are due. No discount applied on the Purchased Power Charge, Purchased Power Adjustment or NYP A Hydropower Credit. 

New York Power Authority (NYPA) - Hydropower Credit:

As approved in the Department's "NYP A Hydropower Credit" M.D.P.U. Schedule No. 163, (rate of .0050) applicable to the first 500 kilowatt­hours (kWh) billed under this rate.