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Whether you buy your energy
supply from an alternate supplier or from O&R, supply and delivery charges that used
to be lumped together on your gas and electric bills are now itemized separately. But,
you still get just one bill that lists all the various charges.
To be a more informed consumer, it's helpful to understand the three main cost components
of your gas and electric bills — Supply, Delivery and Taxes.
Supply — When O&R buys the energy you consume, it does so in the
competitive, wholesale supply market. O&R's costs for the energy it buys
are passed to customers, and O&R makes no profit on those supply charges
— even though market prices often fluctuate due to the forces of supply
and demand. You pay what we pay for the commodity.
Keep in mind that cost-savings achieved by purchasing your electricity supply from alternate
suppliers in O&R's Energy Choice programs apply only to this competitive, unregulated
supply portion of your electric bill.
Delivery — Delivery rates are established by state
regulatory agencies and are not subject to market forces. This revenue
allows O&R to maintain and upgrade its electric and gas transmission
and distribution systems as well as the supporting infrastructure necessary
for safe and reliable service.
Taxes — Local, state and federal taxes apply to both the supply
and delivery portions of your energy bill. Depending on the state and municipality, taxes
comprise approximately 10% to 14% of your total energy dollar. O&R is working to encourage
tax reforms that will contribute to lower overall energy costs.
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