Reviewed · Independent information guide
Electricity and natural gas explained
The energy you buy and the network that delivers it can be billed as separate services.
Supply and delivery
In a customer-choice program, an alternative supplier sells the energy while the distribution utility continues to deliver it. The available arrangement depends on your utility and territory. Read the electricity and gas sections of your state guide separately. [1] [2]
| Term | What to look for |
|---|---|
| Supply | The electricity or gas commodity price and any supplier fees. |
| Delivery | Utility charges for the network and service that remain on the account. |
| Fixed supply rate | A price set for the stated contract period; read the exceptions and renewal terms. |
| Variable supply rate | A price that can change under the contract's pricing method. |
| Default or standard service | The applicable utility or program supply arrangement when no alternative offer is selected. |
Electricity and gas choices are not interchangeable
A utility may offer electricity choice but have different gas arrangements. Municipal utilities, cooperatives and particular customer classes can have distinct rules. The regulator's directory establishes who may operate; your utility and the offer terms establish whether the arrangement fits your account.
What does a renewable electricity offer mean?
Ask for the renewable percentage, generation source and supporting certificates. Renewable Energy Certificates (RECs) represent the environmental attributes of renewable electricity generation. They are different instruments from carbon offsets; neither label alone shows your total price or contract quality. [3]
Check your state's options or work through the offer comparison checklist.
Sources
- EIA: electricity customer choice
- EIA: natural gas customer choice
- U.S. EPA: Renewable Energy Certificates
Review date records an editorial check. Confirm current terms and eligibility at the source.