The “wholesale” cost of electricity currently makes up about half of what electric utility ratepayers pay on an electric bill. This is the portion that PJM manages – the actual cost of generating the electricity, securing capacity for the future, and planning and building the high-voltage transmission system that moves power across long distances.

The remainder of an electric utility bill pays for the costs of distributing that power to your door by your local utility, electric cooperative or other provider (local utility poles, wires and infrastructure), along with state policies (state-mandated fees, taxes and clean energy riders) and the regulated return for local utility earnings.