2 Distribution Charge: This charge offsets our cost to deliver electricity from our substation to you.

3 Transition Charge: This charge collects the estimated "stranded" costs of our long-term generation contracts that precede the Mass. Electricity Restructuring Act of 1998. "Stranded" cost is the difference between our costs to purchase power under these contracts and the "Standard Offer Service Price" as collected through the Generation Charge (see below).

4 Transmission Charge: This charge covers our projected costs of moving the electricity from power plants to our substation.

5 Generation Charge: This charge covers some of the cost of purchasing electricity from power plants. We set this charge at the "Standard Offer Service Price" which is regulated by the Massachusetts Department of Telecommunications and Energy. For our residential customers, savings associated with the power received from the Power Authority of the State of New York will be applied to the first 500 kWh of the Generation Charge for the R1, F1, and HH rates.

6 Total Due: This is the total amount you owe at the time the bill was printed.

7 Net Due: This is the amount due if you pay the bill in time to qualify for the discount. To qualify, your payment must be postmarked by the tenth or received by 8:00 a.m. the first business day after the tenth.

8 Message Block: This space is for messages of special interest to Groton residents. The localight logo signifies our affiliation with 39 other locally-owned electric utilities in Massachusetts.

* Multiplier: This is for commercial customers whose meters do not record on a 1-to-1 ratio. For residential customers the multiplier is 1, which means the total kWh used is exactly the difference between the present and previous meter readings. "kWh" stands for "kilowatt hours." These are the units of electricity you have used, as measured by your meter. One kWh equals the amount of electricity needed to light a 100-watt lightbulb for 10 hours.