What Happens to My Utility When I Switch Suppliers?
Switching electricity suppliers changes who sells you generation, not who owns the wires. Your utility still delivers power, reads the meter, restores outages, and bills you for distribution and demand. In most states you get one consolidated bill with a new supply rate line. Delivery charges and rate class stay the same. You can usually return to the utility default supply rate if you call the utility, though your supplier contract may charge an early termination fee.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026Supply changes; delivery does not
Deregulation split the bill into generation (supply) and delivery (distribution, plus transmission in some states). When you choose a competitive supplier, you are replacing the company that sells you electricity, not the company that owns the poles and transformers [pa-puc-shopping-faq].
Pennsylvania's PUC FAQ lists three parts of service: generation, transmission, and distribution. When you shop, you choose who generates or supplies your electricity. Transmission may move to the supplier's bill. The electric distribution company that delivers power stays the same [pa-puc-shopping-faq].
Connecticut describes the same split: generation has been open to competition since 2000, while delivery costs remain fully regulated [ct-energizect-faqs]. Eversource and UI still deliver electricity and send the bill; only the generation rate line changes when you pick a supplier [ct-energizect-faqs].
For a cannabis cultivator that means:
- Still the utility: outage calls, meter ownership, delivery demand charges, rate class, line extensions, interconnection.
- Now the supplier: energy price, contract term, pass-through capacity in PJM, renewable content claims.
See understanding your commercial utility bill for line-by-line reading.
One bill or two
Most customers stay on consolidated billing.
Pennsylvania's FAQ: in most cases you receive a single monthly bill from your electric utility [pa-puc-shopping-faq]. Connecticut: you continue to receive one electric bill from Eversource or UI with the supplier's generation rate reflected [ct-energizect-faqs]. Some suppliers offer direct billing, which produces two bills [pa-puc-shopping-faq] [ct-energizect-faqs].
New Hampshire's Department of Energy notes that after choosing a supplier you remain a utility customer for delivery and will either get one consolidated bill or two [nh-doe-choosing-supplier]. Ask your supplier which method it uses before enrollment so accounts payable knows what to expect.
What you cannot shop away
Plug In Illinois is explicit: delivery service charges are the same whether or not you switch to an alternative retail electric supplier [il-plugin-choice]. That includes distribution energy charges and, on commercial demand-metered accounts, the per-kW facilities charge.
| Charge type | Still on utility bill after switch? | Typical cannabis impact |
|---|---|---|
| Distribution demand (per kW) | Yes | Often 30 to 70% of bill for grows |
| Rate class (GS vs LS) | Yes | Determines demand threshold |
| Ratchet / minimum billing demand | Yes | Can lock in last summer's peak |
| Supply energy (per kWh) | Moves to supplier | Large share for indoor cultivation |
| Default vs contract capacity | Supplier or default path | PJM tags follow meter behavior |
A supplier switch that saves two cents on energy but ignores a ratchet on delivery may disappoint. Read demand charges explained and utility rate classes explained before you attribute savings to supply alone.
Price to compare: the utility benchmark
Every choice state publishes a default supply price under a name like Price to Compare, Standard Offer Service, or Basic Generation Service.
Illinois defines ComEd's Price to Compare as the electric supply charge plus the transmission services charge. Effective June 1, 2026 the summer Price to Compare is 10.399 cents per kWh [il-ptc-comed]. The Purchased Electricity Adjustment on default service adjusts monthly; you are not subject to the PEA when on an alternative supplier [il-ptc-comed].
Pennsylvania defines the price to compare as the generation and transmission price the EDC charges, based on wholesale auctions, and suggests asking suppliers for a PTC to make an apples-to-apples comparison [pa-puc-shopping-faq].
A supplier quote beats default only if you compare the same components: taxes, capacity pass-through, and contract length included.
Returning to default and net metering
You can go back. Connecticut requires utilities to switch residential and small business customers back to Standard Service within two business days of a phone request [ct-energizect-faqs]. Your supplier may still charge an early termination fee.
Net metering is the main renewable wrinkle. Pennsylvania states that net-metering customers who switch will no longer receive utility credits after the switch and should ask suppliers about production credits before enrolling [pa-puc-shopping-faq]. Interconnection stays; credit mechanics change.
The utility is not offended
Illinois tells customers that utilities do not profit on default supply, pass through wholesale cost, and do not care if you switch [il-plugin-choice]. Connecticut's rate board FAQs say Eversource and UI will not be upset if you choose a supplier [ct-energizect-faqs]. Utilities are wires companies in restructured states; competition is the policy.
For timing, see how long switching takes. For eligibility, see can cannabis businesses choose a supplier.
Consolidated billing and accounts payable
Most customers receive one bill from the utility with supplier generation charges embedded [pa-puc-shopping-faq]. Accounts payable should know the supplier name even on consolidated bills so contract disputes go to the right party. Direct billing produces two invoices: delivery from the utility, generation from the supplier [ct-energizect-faqs]. Confirm which model your supplier uses before enrollment.
Rate class changes after switch
Switching suppliers does not change rate class. If you were on General Service with demand metering before switch, you stay on that class after switch [il-plugin-choice]. Reclassification requires a utility application or a change in load characteristics, not a supplier change. If your peak kW dropped after LED retrofit, request a rate review separately from supplier enrollment.
Cannabis reporting versus utility account
New York PowerScore and Connecticut annual electricity reporting pull data from the same meter the utility reads. Supplier switch changes who bills generation; it does not change the meter number your compliance report references. Keep account numbers consistent across cannabis filings and supplier LOA forms.
Outage and emergency response unchanged
Pennsylvania's shopping FAQ states your electric distribution company continues to supply and deliver electricity and respond to outage problems regardless of which generation supplier you choose [pa-puc-shopping-faq]. Plug In Illinois tells customers to keep calling ComEd or Ameren for outages [il-plugin-choice]. Your supplier phone number is for billing and contract questions, not downed lines.
Line extensions and capital projects stay with the utility
If you request upgraded service or a new transformer, that project stays between you and the utility. The supplier is not in the engineering study. Delivery facilities charges from line extensions appear on the utility bill whether you shop supply or not [il-plugin-choice].
Purchased Electricity Adjustment in Illinois
ComEd default supply includes a Purchased Electricity Adjustment that moves monthly with wholesale prices [il-ptc-comed]. Alternative retail electric supplier customers are not subject to the PEA on the utility default line because supply comes from the contract. When comparing offers, use the published Price to Compare plus understand you are leaving PEA volatility for contract pass-through volatility.
Tax and franchise surcharges
State and local taxes on delivery often remain on the utility bill after switch. Some jurisdictions tax supply separately when direct billed. Accounts payable should map tax lines on the first post-switch invoice against the pre-switch bill so savings calculations use total dollars, not supply kWh rate alone [pa-puc-shopping-faq].
First bill after switch: what to reconcile
Compare pre-switch and post-switch bills line by line:
| Line | Expected change |
|---|---|
| Distribution demand ($/kW) | No change |
| Distribution energy | No change |
| Generation/supply energy | New rate from supplier or new line on direct bill |
| Transmission | May move to supplier section |
| Default supply benchmark | Disappears from utility supply lines |
| Taxes | May split differently on direct billing |
Pennsylvania consolidated bills still show the distribution company name at the top [pa-puc-shopping-faq]. The generation rate line should reflect your supplier price. If delivery demand moved, that is unrelated to switch and means load or class changed.
Who to call for what after enrollment
Utility phone number: outages, meter problems, downed lines, service upgrades, rate class questions, return to default supply [il-plugin-choice] [pa-puc-shopping-faq].
Supplier phone number: contract price disputes, pass-through line items, renewal notices, billing errors on generation portion.
Broker phone number: only if broker placed the deal and contract assigns them as liaison; broker does not restore power.
Cannabis compliance reporting uses meter data regardless of supplier. OCM and DCP reporting in New York and Connecticut pull kWh from the same meter the utility reads [ct-energizect-faqs].
Misconceptions we hear from operators
Myth: The utility will raise delivery rates because I left default supply. Fact: Delivery tariffs apply equally to default and supplier customers [il-plugin-choice].
Myth: I need a new meter to switch. Fact: Supply change is administrative on the same meter [pa-puc-shopping-faq].
Myth: Outages are the supplier's problem. Fact: Call the wires utility for outages [il-plugin-choice].
Myth: Switching fixes demand charges. Fact: Delivery demand stays on the utility bill [il-plugin-choice].
SAID and supplier LOA mismatches
Enrollment delays happen when the supplier account name does not match the utility account holder exactly. Align DBA, LLC legal name, and cannabis license entity before LOA submission [pa-puc-shopping-faq]. A mismatch does not change legality of choice; it changes how many days until the switch completes.
Dual-vendor AP setup
Create separate vendor records for wires utility and supplier on first post-switch invoice even if consolidated billing arrives as one PDF [pa-puc-shopping-faq].
Frequently asked questions
Does the utility still deliver my power and fix outages after I switch?
Yes. Pennsylvania's PUC shopping FAQ states that your electric distribution company remains the same when you choose a new supplier, and you still call the utility about outages and repairs. Connecticut's Energize CT FAQs say only Eversource or UI can shut off service, not a supplier. Plug In Illinois tells customers to keep calling ComEd or Ameren for outages regardless of who supplies energy. The supplier sells generation; the utility runs the wires.
Will I get one bill or two?
Usually one. Pennsylvania's FAQ says most customers receive a single monthly bill from the electric utility with the supplier's generation charges included. Some suppliers request direct billing, in which case you receive one bill from the utility for delivery and one from the supplier for generation. Connecticut notes the same split: consolidated billing is standard, direct billing is optional. Ask before you enroll which model your supplier uses.
Do delivery and demand charges change when I switch suppliers?
No. Delivery is fully regulated and stays with the utility. Plug In Illinois states you pay the same delivery service charges whether or not you switch suppliers. Demand charges on the delivery tariff, rate class, ratchets, and distribution per-kW fees are utility-side costs. A supplier contract changes the generation and often transmission commodity lines, not the wires company's demand meter charge.
What is the price to compare and where is it on my bill?
It is the utility's default supply price for benchmarking competitive offers. Pennsylvania defines the price to compare as the price per kWh the distribution company will charge for generation and transmission plus certain state charges, developed from wholesale auctions. Illinois publishes ComEd's Price to Compare as supply plus transmission; effective June 1, 2026 ComEd's summer Price to Compare is 10.399 cents per kWh before the Purchased Electricity Adjustment [il-ptc-comed]. It appears on your bill or the regulator's shopping site, not inside a supplier contract.
Can I go back to the utility default rate?
Yes, in essentially every choice state. Connecticut says customers returning to Standard Service must contact Eversource or UI by phone, and the utilities must switch residential and small business customers back within two business days and prorate the bill. Pennsylvania directs customers to shop at PAPowerSwitch but allows return to default service through the utility. Check your supplier contract for early termination fees before you switch back.
Does switching affect net metering or interconnection?
It can affect credits. Pennsylvania's shopping FAQ states that net-metering customers who switch to a supplier will no longer receive credits from the utility after switching; the utility provides a final credit for energy produced before the switch, and customers should ask prospective suppliers whether they offer production credits. Interconnection agreements and meters usually stay in place. Confirm with both the utility and the new supplier before you enroll if you have onsite solar.
Does my utility know I'm a cannabis business?
Your utility knows your rate class, load profile, and account name. It does not need your state cannabis license number to deliver power. State energy reporting rules for cultivators, such as New York PowerScore or Connecticut's annual electricity report statute, are separate from the supplier switch. The utility bills the meter; the cannabis regulator may require data you pull from the same meter.
Related reading
- Understanding Your Commercial Utility Bill (Line-Item Breakdown)
Supply vs delivery, customer charge, distribution demand, transmission, capacity, riders, power factor, and taxes, with an annotated sample bill for a grow.
- What Is Energy Deregulation? How Electricity Choice Works for Commercial Customers
How deregulation splits supply from delivery, who gets to choose a supplier, what the utility still does, and where cannabis businesses can shop in 17 markets.
- Utility Rate Classes Explained: Small Commercial, Large Commercial, C&I
How utilities assign small, large, and C&I rate classes by peak kW, why the wrong class costs money, real tariff examples, and how to request a class review.
- How Long Does Switching Electricity Suppliers Take?
How long supplier switches take: PA's 3-day rule, CT meter-read timing, Texas ERCOT, rescission windows, and mid-contract moves for commercial accounts.
- Can Cannabis Businesses Choose Their Electricity Supplier?
Whether grows and dispensaries can shop for electricity supply in deregulated states, what suppliers may ask, and what stays with the utility after you switch.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [pa-puc-shopping-faq], refer to the entries below. Links open the primary source in a new tab.
- [pa-puc-shopping-faq]Frequently Asked Questions When Shopping for Electricity — Pennsylvania Public Utility Commission. Accessed 2026-09-12.
- [ct-energizect-faqs]Rate Board FAQs — Energize Connecticut. Accessed 2026-09-12.
- [il-plugin-choice]Electric Choice Basics — Illinois Commerce Commission (Plug In Illinois). Accessed 2026-09-12.
- [il-ptc-comed]Price to Compare - ComEd — Illinois Commerce Commission (Plug In Illinois). Accessed 2026-09-12.
- [nh-doe-choosing-supplier]Choosing an Energy Supplier — New Hampshire Department of Energy. Accessed 2026-09-12.