Is that not what your consumption fee is for? You’re paying for generation/distribution for the power you use,

Based on that comment, I think I understand the issue.

In my state, I can purchase power from literally any of a hundred generators. I pay them to put power on the grid, for me to take off.

I also pay a single grid provider to (ostensibly) transfer that power from where it generated to me.

What I am talking about here is the fact that both the generator and the grid operator have costs that depend on “consumption”. The more power I use, the greater the load on the grid, and the more infrastructure they need. They might be able to use a single transformer to adequately serve 20 low-use households; they might need 5 transformers to adequately serve 10 high-use households.

Even though all 30 of these households have 200A service, It does not make sense that the cost of these 6 transformers should be evenly assessed. It does make sense that two high-use households (who use a full transformer) pay the same total fee as the 20 low-use households (who also use a full transformer).