What is the distribution charge?

When some customers think of paying their electric bill, they may tend to think of the cost in kilowatt hours. However, there is more involved in the cost than just the kilowatt hours used.

The Distribution Charge incorporates the cost of supplying electricity to each customer along with the cost of providing and maintaining equipment like poles, wire, meters and transformers. Prior to the use of a Distribution Charge, these costs were included in the kilowatt hour price.

“In 2015, Dawson PPD determined it was more sustainable to break out our infrastructure costs into a nonfluctuating monthly amount,” said Lori Christner, Supervisor of Consumer Accounts and Records. “This helps avoid one rate class subsidizing for another and ensures that the cost to use Dawson PPD’s electric distribution system is evenly distributed among all customers.”

Customers are billed monthly for a Distribution Charge in addition to the amount of kilowatt hours used.

This charge defrays the following costs:

• Power lines and substation equipment
• Billing and administration costs
• Maintenance
• Capacity to move and deliver power as needed

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