Billing Glossary

Billing Glossary

The price you pay for electricity and/or natural gas ("energy") is made up of delivery and supply charges. Delivery charge: what you pay NYSEG to transport energy to your home or business. Supply charge: what you pay for the energy purchased for you by NYSEG or a supplier other than NYSEG (also known as an energy services company or ESCO).

  • Basic service charge includes a portion of the cost of the meter, meter reading, billing and part of the cost for delivery service. Appears on your bill whether or not you use any electricity or natural gas during the billing period.
  • Kilowatt-hours measure of electricity use.
  • Hydroelectric power savings estimated savings from the cost of hydroelectricity NYSEG buys.
  • ccf (hundreds of cubic feet) measure of volume of natural gas used. You are charged based on therms, the heat content of the natural gas.
  • Gas supply charge reflects the actual costs of purchasing, transporting and storing natural gas for those customers who receive their natural gas supply from NYSEG.
  • Merchant function charge reflects the administrative costs of obtaining natural gas supply. Customers with a supplier other than NYSEG are not charged for this service.
  • Weather adjustment moderates natural gas bills during any extreme weather between October 1 and May 31. If temperatures during the billing period are colder than normal, customers typically receive a weather adjustment credit. If temperatures are warmer than normal, customers receive a weather adjustment charge.
  • Meter conversion factor used to calculate your bill if your meter is one of those that records only a portion of your energy use.
  • Systems benefit charge (SBC) a state-mandated charge for all electricity and natural gas customers. The SBC is used to fund clean energy activities conducted by NYSERDA and energy efficiency programs administered by NYSEG.
  • Transition charge/surcharge reflects the costs of making the electricity and/or natural gas industry more competitive. Includes associated credits and/or charges.
  • Prorated bills calculated by determining your average daily energy cost and multiplying it by the number of days in your billing period. Prorated bills are used only when your billing period is shorter or longer than normal.
  • Pay your bill by mail, online, or at any of NYSEG's authorized pay agents. If you pay in person, please bring your entire bill.
  • Payment is due when you receive your bill. Your payment must be postmarked by the date at the top of page 1 of your bill to avoid a late payment charge of 1.5% per month. If you pay in person your payment must be received on or before the date at the top of page 1 of your bill.

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Backout Credit (Supply Adjustment)

Based on the market price of electricity, it is applied against the NYSEG fixed supply charge if you are enrolled with an energy services company (ESCO) under the ESCO Price Option with Supply Adjustment.

Customer Charge

Includes a portion of the cost of the meter, meter reading, billing and part of the cost for delivery service. It will appear on your bill whether or not you use any energy during the billing period.


Basic Service Charge

Includes a portion of the cost of the meter, meter reading, billing and part of the cost for delivery service. It will appear on your bill whether or not you use any energy during the billing period.

Bill Issuance Charge

Formerly included in the basic service charge, the cost to produce and send you a bill and process your payment. Customers who use an energy supplier (also known as an energy services company or ESCO) other than NYSEG will not be assessed this charge if their ESCO’s supply charges appear on their NYSEG bill. Bill issuance charges appear in the electricity and/or natural gas section of the bill.

Delivery Charge

The delivery charge is what you pay NYSEG to transport electricity to you over our power lines. Costs associated with maintaining the safety and reliability of the electric system are included.

Energy Services Company (ESCO) (Energy Supplier)

A person or corporation, generator, broker, marketer, aggravator or any other entity that sells electricity or gas to customers, using the transmission or distribution facilities of the utility (NYSEG). Suppliers are not regulated by the Public Service Commission.

Fixed Price

A price that remains the same, usually for a set period of time.

Kilowatt-hours (kwh)

The measure of the quantity of electricity you use. A kwh equals 1,000 watt-hours. One kwh equals the energy needed to operate a 100-watt light bulb for 10 hours.

Load Profile (Historical Usage Data)

Information on a customer’s energy usage over a period of time, sometimes shown in a graph format and typically reflects the last 13 months of recorded data.

Merchant Function Charge (MFC)

This is a fixed per kwh charge that reflects NYSEG’s administrative costs for obtaining electricity supply and applies to those customers on the NYSEG Fixed Price Option or the NYSEG Default Supply Option.

New York Independent System Operator (NYISO)

The function of the NYISO is to coordinate the physical supply of electricity throughout New York State and maintain reliability of the bulk power system.

New York State Assessment

As required by state law, effective July 1, 2009, utilities must collect a special state assessment from all customers for the state’s general fund. This assessment, included in the delivery charge on your bill, amounts to an annual bill increase of approximately 2%. Utilities are required to collect this assessment through March 2014.

New York State Public Service Commission (PSC)

The New York State Public Service Commission (PSC) is a state regulatory agency that provides oversight, policy guidance and direction to public utilities.

Point of Delivery ID (PoD ID)

Your Point of Delivery (PoD ID) is your “energy address” within NYSEG’s delivery system – it’s an essential number to provide to a supplier other than NYSEG. Your PoD ID can be found on page three of your NYSEG bill, above the meter reading table. Or click on “Your Account,” “Online Services” and “My Account,” provide your Login Id and password, select “Energy Use” and the PoD ID will be displayed.


An amount agreed upon between the utility and Public Service Commission (PSC) by which the utility bills customers for an approved period of time. Rates differ from one service classification to another.

Service Classification (SC)

NYSEG's pricing for retail service is established by tariffs that are filed and approved by the Public Service Commission (PSC). The tariff establishes a range of service classifications (SC) based on customer size and other circumstances.

Supply Charge

The supply charge is what you pay for the electricity purchased on your behalf in the wholesale market by NYSEG or an energy services company (ESCO, also known as a supplier).

Transition Charge

The transition charge is the difference between the market price of electricity and the price of NYSEG’s long-term electricity supply contracts (may be positive or negative). The transition charge is a fixed price per kwh for any option you select.

Variable Price

A price that fluctuates depending on the wholesale price of electricity.

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