In Maine, power bills cover a range of costs that play different roles in keeping the lights on, including separate rates to generate and move electricity, fund policies enacted by the state government and pay for damage caused by storms.

But between confusing terminology and changes that effect take at different times in the year, it’s not always clear what you’re paying for.

We asked Maine’s two largest electrical utilities and several state agencies to break down the average residential bill, then analyzed where the money goes.

Here’s how sample bills from Versant Power, which covers northern parts of the state, divide down. Costs vary slightly between the company’s two districts. (For details on Central Maine Power Co., which serves southern, central and western parts of the state, click here.)

The percentage of each category will change depending on the amount of power used, so your bill may break down differently.

Bangor Hydro District:

Total — $154.39

The Bangor Hydro District includes Bangor, Millinocket and extends into Down East. There, the average bill for renters and homeowners in October was $154.39, according to Versant. That’s based on the use of 500 kilowatt-hours of electricity, the typical monthly usage among the utility’s customers.

In 2015, a household using that amount of electricity would pay about $86.66, according to state data. In other words, that total has risen by more than 78% over the last decade.

Supply of electricity — $52.81

A large portion of each bill covers the cost of producing electricity and is paid to companies that generate power throughout the region. Versant collects the charge but passes the money along.

Most residential customers take the default “standard offer,” which is determined through a competitive bidding process. Each year, regulators at the Maine Public Utilities Commission solicit proposals from electricity producers and select the following year’s price. Changes to these rates go into effect on Jan. 1.

This year, state regulators chose to source three-quarters of the power for this district from New Brunswick Energy Marketing and one quarter from Constellation Energy Commodities Group. Together, they generate about 36% of power from solar, wind, hydro and fuel cells; 35% from burning waste and biomass; 20% from fossil fuels; and 8% from nuclear energy, according to the latest data from the Public Utilities Commission.

People can also opt to source their power from competitive electricity providers, which offer different rates and fee structures. A minority of customers choose that option.

In this example, supply costs make up about 34% of the total bill.

The remainder is split into fixed and volumetric charges that cover the following categories. The fixed component is $22.81, which covers the first 100 kWh; the rest is volumetric, meaning customers pay for each additional kilowatt-hour they consume.

Transmission — $28.23

Transmission refers to the movement of massive quantities of energy over long distances, including from generation sites to local substations, according to the Federal Energy Regulatory Commission. This part of the bill goes to Versant.

Transmission lines can carry about double — or more — the voltage load of local lines. They are often held by large, metal structures with branching arms and usually run along dedicated rights of way, not public roads, according to the Office of the Public Advocate.

The federal commission oversees transmission rates for the entire New England region, which shares infrastructure that allows energy to flow across state lines.

In this average case, transmission makes up about 18% of the bill.

Distribution — $59.69

Distribution refers to the movement of smaller quantities of electricity to individual homes — another portion of the bill that goes directly to Versant. This is the largest single component of a typical Bangor Hydro bill.

This includes the electricity carried through towns and neighborhoods by overhead or buried wires that run along residential roads. It’s the final stage before electricity reaches residential customers, according to Electric Power Engineers, an industry consulting firm.

Versant also recovers money it spent on restoring power after major storms through its distribution rates, spokesperson Marissa McKay said. The cost to pay off storms in December 2022 and September 2023 currently make up about 2% of the company’s total distribution revenue, she said.

Distribution accounts for about 39% of this sample bill.

Policy costs — $8.98

Bangor Hydro customers pay an average of $10.87 for costs required by state policy.

That includes about 1.09 for the Low-Income Assistance Program, plus a few dollars related to expenses that have resulted from the state restructuring its electricity laws decades ago.

But that figure is partially offset by a $1.89 credit, which stems from contracts with power generators that were signed decades ago and are still in effect, McKay said.

“The costs we pay to the generator for energy is less than the revenue we receive from reselling the energy into the market. Those surplus revenues then flow back to customers in the form of a negative (refund) rate,” she said.

These costs make up about 6% of this sample bill.

Conservation — $4.68

This money goes toward the Efficiency Maine Trust, and the rate is set by the utilities commission.

The quasi-state agency offers programs and subsidies aimed at promoting home electrification and energy efficiency — things like rebates on heat pumps and upgraded insulation.

This charge is about 3% of the sample bill.

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Maine Public District:

Total — $145.40

The Maine Public District covers parts of Aroostook County, including Allagash and Caribou and extending down toward Sherman. There, the average bill for renters and homeowners in October was $145.40, according to Versant. That’s based on the use of 500 kilowatt-hours of electricity, the typical monthly usage among the utility’s customers.

In 2015, a household using that amount of electricity would pay about $74.25, according to state data. In other words, that total has risen by more than 95% over the last decade.

Supply of electricity — $58.27

A large portion of each bill covers the cost of producing electricity and is paid to companies that generate power throughout the region. Versant collects the charge but passes the money along.

Most residential customers take the default “standard offer,” which is determined through a competitive bidding process. Each year, regulators at the Maine Public Utilities Commission solicit proposals from electricity producers and select the following year’s price. Changes to these rates go into effect on Jan. 1.

This year, state regulators chose to source all of this district’s power from New Brunswick Energy Marketing, which generates about 70% of its electricity from hydro, 22% from wind and solar, 6% from fossil fuels; less than 2% from nuclear energy and less than half a percent from biomass and municipal waste, according to the latest available data from the utilities commission.

People can also opt to source their power from competitive electricity providers, which offer different rates and fee structures. A minority of customers choose that option.

In this example, supply costs make up about 40% of the total cost.

The remainder is split into fixed and volumetric charges that cover the following categories. The fixed component is $23.14, which covers the first 100 kWh; the rest is volumetric, meaning customers pay for each additional kilowatt-hour they consume.

Transmission — $13.54

Transmission refers to the movement of massive quantities of energy over long distances, including from generation sites to local substations, according to the Federal Energy Regulatory Commission. This part of the bill goes to Versant.

Transmission lines can carry about double — or more — the voltage load of local lines. They are often held by large, metal structures with branching arms and usually run along dedicated rights of way, not public roads, according to the Office of the Public Advocate.

The federal commission oversees transmission rates for the entire New England region, which shares infrastructure that allows energy to flow across state lines.

In this average case, transmission makes up about 9% of the bill.

Distribution — $58.48

Distribution refers to the movement of smaller quantities of electricity to individual homes — another portion of the bill that goes directly to Versant. This is the largest single component of a typical Maine Public bill.

This includes the electricity carried through towns and neighborhoods by overhead or buried wires that run along residential roads. It’s the final stage before electricity reaches residential customers, according to Electric Power Engineers, an industry consulting firm.

Versant also recovers money it spent on restoring power after major storms through its distribution rates, McKay, its spokesperson, said. The cost to pay off storms in December 2022 and September 2023 currently make up about 2% of the company’s total distribution revenue, she said.

Distribution makes up about 40% of this sample bill.

Policy costs — $10.43

Maine Public customers pay an average of $11.44 in fixed public policy costs each month. That includes about 80 cents for the Low-Income Assistance Program, plus a few dollars related to expenses that have resulted from the state restructuring its electricity laws decades ago.

But that figure is offset by a $1.01 credit in place of stranded costs, which stems from contracts with power generators that were signed decades ago and are still in effect, McKay said.

“The costs we pay to the generator for energy is less than the revenue we receive from reselling the energy into the market. Those surplus revenues then flow back to customers in the form of a negative (refund) rate,” she said.

Policy costs make up about 7% of this sample bill.

Conservation — $4.68

This money goes toward the Efficiency Maine Trust, and the rate is set by the utilities commission.

The quasi-state agency offers programs and subsidies aimed at promoting home electrification and energy efficiency — things like rebates on heat pumps and upgraded insulation.

This charge is about 3% of the sample bill.