Your total electricity charge is made up of several individual costs: some controllable, others not. On your utility bill, you will notice a utility distribution charge and a supplier charge. The distribution charge paid to your utility accounts for roughly 25% of your total electricity cost and cannot be changed. The remaining 75%, your supplier charge, includes cost components, such as the actual generation cost of the electricity, capacity, transmission, and other smaller charges.
The capacity charge is one cost that can be affected with proper management. Your capacity charge is made up of two main components: capacity cost and capacity tag.