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This guide explains the basics of electricity costs and how large industrial loads like data centers can affect your bill. No technical background required—just the essentials for informed community members.
Looking for detailed methodology and data sources? See our full methodology documentation.
Your monthly electric bill isn't just paying for the electricity you use—it covers an entire system of power plants, transmission lines, and local infrastructure. Here's where your money goes:
Fuel & Operating Costs (~25%)
The cost of natural gas, coal, or other fuels to run power plants. Utilities pass these through at cost—they don't mark up fuel.
Generation Capacity (~25%)
The cost of building and maintaining power plants. Solar and wind are almost entirely capacity costs since they have no fuel expenses.
Transmission (~12%)
High-voltage power lines and substations that move electricity from power plants to your region. Regulated by FERC.
Distribution (~25%)
Local poles, wires, and transformers that deliver power to your home. Regulated by your state's Public Utility Commission.
Other (~13%)
Taxes, fees, energy efficiency programs, and renewable energy mandates. These vary significantly by state.
Reference: EIA - Electricity prices reflect rising delivery costs (2017)
Ready to Calculate Impact?
Use our calculator to see how a specific data center scenario might affect electricity costs in your community.