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How an RG&E bill is built

Every kilowatt-hour you consume passes through both halves of the bill. Even if you switch your supply to an ESCO, the delivery half stays with RG&E and carries the same customer charge, per-kWh delivery rate, and state surcharges.

Delivery (always RG&E)

  • ·Basic service charge. A fixed monthly customer charge.
  • ·Delivery service charge. Per-kWh charge for routing power to your home.
  • ·Billing charge. Covers bill production and processing.
  • ·Revenue decoupling mechanism (RDM). Reconciles RG&E's revenue against PSC targets.
  • ·State surcharges. SBC, RPS, NY state assessment, transition charge.
  • ·Taxes. Sales tax on delivery.

Supply (RG&E default or your ESCO)

  • ·Market price charge. Cost of the actual energy you used.
  • ·Merchant function charge. RG&E's cost to procure energy on your behalf. Dropped if you switch to an ESCO.
  • ·Supply taxes. Sales tax on supply.

SC-1 (residential) vs SC-2 (small commercial)

RG&E classifies each meter into a Service Classification (SC) defined in its PSC tariff. SC-1 (residential) and SC-2 (general service, small use) are the two that cover most households and small businesses; larger commercial and industrial accounts fall under SC-3 and above.

Comparison of RG&E SC-1 and SC-2 service classifications
Aspect SC-1 (residential) SC-2 (small commercial)
Who it covers Single-family homes, apartments, condos, and most small dwellings. Stores, offices, restaurants, and small businesses under defined demand thresholds.
HEFPA protection Full residential protection: 15-day notice, cold-weather rule, medical certificate, deferred payment agreement. Different rules apply to commercial accounts; HEFPA's full residential protections do not apply.
Energy Affordability Program (EAP) Eligible if enrolled in HEAP or another qualifying low-income program. Not eligible.
Time-of-use option SC-4 variant available with a TOU meter for households shifting load to off-peak. Larger SC categories have their own time-of-use and demand options.
Default supply pricing Reset monthly through the NYISO Zone B wholesale auction. Same monthly reset, different rate schedule by class.

When re-classification matters. A home office, an in-home day care, or a residential property converted to a commercial use can end up wrongly classified. SC-1 is almost always cheaper for a household than SC-2, but if a commercial use dominates the meter (high daytime load, heavy refrigeration, multiple workers), staying on SC-1 in violation of the tariff exposes you to back-billing. If you are unsure, ask RG&E to review your classification.

The 2024 Avangrid joint rate case (Cases 22-E-0317 & 22-G-0318)

RG&E and NYSEG filed their last delivery-rate case jointly with the PSC, on a multi-year trajectory. The settlement was approved in 2023 with annual increases phasing in through the 2025-2026 rate year. It set a return on equity of 9.2% and committed Avangrid to bill-relief, service-quality and storm-response improvements.

What changed

  • ·Higher monthly customer charge and per-kWh delivery rate to fund grid modernization.
  • ·Funding for vegetation management and storm-hardening on the rural feeders across the Finger Lakes.
  • ·Expanded low-income discount budget under the EAP.
  • ·Performance metrics on call-center hold times and billing accuracy, with financial penalties if missed.

What is still phasing in

  • ·The third-year delivery-rate step takes effect in the 2025-2026 rate year.
  • ·Electric-vehicle make-ready incentives for residential and commercial chargers.
  • ·Heat-pump and weatherization rebates under New York's CLCPA framework.
  • ·Advanced metering infrastructure (smart-meter) rollout continuing through 2026.

Source: NY DPS Case Master records for Cases 22-E-0317 (electric) and 22-G-0318 (gas). Always check the latest order on DPS Document & Matter Management before relying on a specific dollar figure.

Where the per-kWh dollars go

An RG&E SC-1 bill, conceptually, is the sum of three blocks: delivery (paid to RG&E), supply (paid to RG&E or to your ESCO), and state surcharges (passed through to NY programs). The exact per-line numbers change each year and after every rate-case step; the rge.com Pricing & Rates page and the PSC's DPS Case Master are the authoritative sources. Below is the structural shape every SC-1 bill follows.

RG&E SC-1 bill structure
Block Line items Who sets it
Delivery Basic service charge (fixed), delivery service charge (per kWh), billing charge, RDM credit/debit. PSC, via the multi-year rate case.
State surcharges SBC (system benefits), RPS (renewable portfolio), NY state assessment (TSAS / Section 18-a), transition charge, sales tax. NY State + PSC.
Supply Market price charge (per kWh, monthly reset), merchant function charge, supply tax. RG&E default rate (monthly auction) OR your ESCO contract.

All-in RG&E residential bills (delivery + supply + surcharges) typically run around 22-23 ¢/kWh, well below the New York state residential average of 28.55 ¢/kWh (EIA Electric Power Monthly, March 2026). The structural reason is that most of RG&E's territory clears in NYISO Zone B, where wholesale prices sit well below downstate Zone J (New York City). For state-wide comparison data see NY electricity prices.

Every line item on your RG&E bill, explained

  • Basic service charge (BSC)

    A fixed monthly customer charge that does not depend on how much energy you used. It covers meter reading and maintenance, billing infrastructure, and the cost of keeping you connected to the grid.

  • Delivery service charge

    A per-kWh charge for transporting electricity from the generator to your home. It varies with usage but does not change if you switch to an ESCO.

  • Billing charge

    Covers the production and processing of your monthly bill.

  • Revenue decoupling mechanism (RDM)

    RG&E forecasts its delivery revenue each year. If actual revenue exceeds target, the surplus is refunded to customers (small credit on the bill); if revenue falls short, the gap is collected. RDM removes RG&E's incentive to push more kWh through the wires.

  • System benefits charge (SBC)

    A state surcharge that funds energy-efficiency programs, low-income assistance, and energy R&D.

  • Renewable portfolio standard (RPS)

    A state surcharge that funds NY's renewable-energy goals under the CLCPA.

  • NY state assessment / Temporary state assessment surcharge (TSAS)

    A state-mandated charge under Section 18-a of the Public Service Law that funds energy conservation and PSC oversight.

  • Transition charge (TC)

    A pass-through credit or debit reflecting the gain or loss on RG&E's long-term legacy supply contracts. It can be negative (a credit on your bill).

  • Market price charge

    The actual wholesale cost of the electricity you used during the billing period. If you stay on the RG&E default rate, this charge resets monthly via auction; if you signed an ESCO contract, your contracted price replaces this line.

  • Merchant function charge (MFC)

    RG&E's cost to procure energy on your behalf (traders, hedging, NYISO market access). MFC drops to zero when you sign an ESCO contract because the ESCO is doing the procurement.

For state-level detail on the surcharges only, see our NY state surcharges page. To walk through a real PDF bill, see Understanding your RG&E bill.

Why RG&E sits below the NY state average

Most of RG&E's territory clears in NYISO Zone B (Genesee), where wholesale electricity prices sit well below downstate Zone J (NYC). Add a denser, less constrained delivery network and you end up with all-in RG&E residential bills around 22-23 ¢/kWh versus a state average of 28.55 ¢/kWh in March 2026 (EIA).

RG&E and sibling NYSEG file rate cases jointly but bill from separately tariffed books. A neighbor in NYSEG territory will see the same Avangrid logo and customer-service line but different delivery rates on the bill.

Tip. When you compare an ESCO offer against RG&E, compare supply to supply, not the ESCO's per-kWh rate against your all-in RG&E bill. The delivery half stays with RG&E regardless. The PSC's Power to Choose tool shows your current RG&E default supply rate next to any licensed ESCO offer.

Frequently asked questions about RG&E rates

All-in RG&E residential bills (delivery + supply + state surcharges) typically run around 22-23 ¢/kWh in 2026, well below the New York state residential average of 28.55 ¢/kWh (EIA Electric Power Monthly, March 2026). The exact per-line numbers are reset by the PSC in each rate-case step and by the monthly RG&E default-supply auction. For the current authoritative rates, see the RG&E Pricing & Rates page or the PSC DPS Case Master.

The basic service charge is a fixed monthly amount on every SC-1 bill that does not depend on usage. It funds meter maintenance, billing, and the cost of keeping you connected to the grid. The exact amount is set in the PSC-approved tariff and increases with each rate-case step.

SC-1 is the residential service classification: single-family homes, apartments, small dwellings. SC-2 is general service for small commercial accounts: stores, offices, small businesses below defined demand thresholds. SC-1 carries full HEFPA residential protections; SC-2 does not.

RG&E and sibling NYSEG filed their last delivery-rate case jointly with the PSC under Cases 22-E-0317 (electric) and 22-G-0318 (gas). The settlement, approved in 2023, sets a multi-year delivery-rate trajectory with annual steps phasing in through the 2025-2026 rate year, plus storm-hardening funding and service-quality penalty metrics.

No. The merchant function charge (MFC) covers RG&E's cost to procure energy on your behalf. When you sign an ESCO contract, the ESCO takes over procurement and the MFC drops off your bill.

Most of RG&E's territory clears in NYISO Zone B (Genesee), where wholesale electricity prices sit well below downstate Zone J (NYC). Add a denser, less constrained delivery network and you end up with all-in RG&E bills around 22-23 ¢/kWh versus more than 30 ¢/kWh for Con Edison customers.

More about RG&E

RGE RG&E utility profile Phones, outage numbers, Avangrid family and service area. CLASSES Service classifications Every PSC service classification used by RG&E from SC-1 through SC-14. BILL Understanding your bill Line-by-line decoder of every block on the RG&E PDF bill. TARIFFS NY state surcharges SBC, RPS, GRT and every other state rider on the bill. SUPPLIERS NY ESCOs and suppliers Compare PSC-licensed retail suppliers available in RG&E territory. NYSEG NYSEG RG&E's Avangrid sibling, joint rate case, separately tariffed.
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