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So delivery is for wires, transmission, operations and safety (see wildfire maintenance as an example in CA). So whenever anyone new connects to the grid the c
by boringg 5y ago
So delivery is for wires, transmission, operations and safety (see wildfire maintenance as an example in CA). So whenever anyone new connects to the grid the cost will get defrayed through this mechanism. My theory is the more that people are becoming more effective at avoiding high generation fees the utilities will transfer the costs to the delivery fee increasing it over time to ensure they continue to get revenue.
Generation is for the portion generated - which will likely go up with the surge in commodity prices this year - except since you are paying retail rates it will take longer you aren't immediately exposed to whole electricity prices and the costs of electricity are also political issues in Ontario to a small degree.
Also in Ontario we sell power at a loss to Michigan (mainly because of overproduction of our Nuclear facilities). Its a real boondoggle.