A charge added to a customer's electrical bill which is intended to cover the cost of transmitting energy over the transmission grid between the generating facility and the local utility's distribution facilities.

Prior to deregulation of the energy industry, electricity was provided as a single bundled service, and energy billings covered all costs incurred in production and delivery. In deregulated markets, separate companies can offer specific services involved in this process, and one of those services is transmission. Transmission charges may be rolled into other charges even in a deregulated market, but if they are billed separately, they will appear as line item charge on a customer's invoice, and will be paid as part of the total electrical bill.

See also: