What Is A Line Loss Charge?

Contents

1 What is a Line Loss Charge?
2 Line Loss by Percentage
3 Is the Line Loss Charge included in the Supply Rate?
4 Components of the Supply Charge

A line loss charge is one of the components that make up the supply rate. The supply rate is also referred to as the price to compare and is used by customers while shopping for energy suppliers. Asking energy suppliers for the price to compare rate will assure you are receiving an apples-to-apples comparison while comparing providers. It is not uncommon for a provider to not include all the components, such as the line loss charge, and bypass this charge onto the electric bill. The customer needs to read and understand the terms and conditions carefully before signing up for a plan.

The line loss charge is the amount of electricity that is lost on the power lines from the point of generation to the point of service. The longer the distance the energy has to travel the greater the loss will be. According to the U.S. Energy Information Administration (EIA), electricity lost from transmission and distribution average 5% in the United States, annually.

Below is a table showing the average annual line loss for a list of states that are deregulated from 2018 to 2014.

Line Loss by Percentage

State	2018	2017	2016	2015	2014
California	4.8%	5.1%	4.8%	4.7%	4.9%
Connecticut	3.8%	4.5%	4.2%	3.9%	4.6%
Delaware	4.9%	5.1%	4.9%	4.7%	4.9%
District of Columbia	4.9%	5.1%	4.9%	4.7%	4.9%
Illinois	4%	4.2%	4%	3.6%	3.5%
Maine	4.7%	4.5%	4.2%	4.1%	4.2%
Maryland	4.9%	5.1%	4.9%	4.7%	4.9%
Massachusetts	4.9%	5.1%	4.9%	4.7%	4.9%
Michigan	4.5%	4.8%	4.6%	4.3%	4.8%
New Hampshire	3.3%	3.4%	2.9%	2.7%	2.9%
New Jersey	4.9%	5.1%	4.9%	4.7%	4.9%
New York	4.9%	5.1%	4.9%	4.7%	4.9%
Ohio	4.9%	5.1%	4.9%	4.7%	4.9%
Pennsylvania	3.7%	3.7%	3.6%	3.5%	3.5%
Rhode Island	4.7%	5.1%	5.3%	4.7%	4.9%
Texas	4.9%	5.1%	4.9%	4.7%	4.9%

Is the Line Loss Charge included in the Supply Rate?

As mentioned above, the line loss charge may be included in the supply rate or can be bypassed as a separate charge on the electric bill. Most energy suppliers will incorporate this charge into the supply rate. However, some product plans such as the index plan will pass through this charge onto the bill. This means the line loss charge will not be a fixed cost but will fluctuate month-to-month. Index plans are reserved for large industrial size users that consume millions of kilowatt-hours annually.

Components of the Supply Charge