How-to
How to Read Your Electric Bill (and Spot Savings)
🇩🇪 Diesen Artikel auf Deutsch lesenYour bill has two main parts: supply (the electricity itself) and delivery (the poles and wires). Divide the total bill by the kWh you used to get your all-in price per kWh. Comparing that number and your usage month to month shows where savings are possible.
Electric bills look different from utility to utility, but almost all of them contain the same building blocks. Once you know them, you can check whether your plan still fits and where your money goes.
Step by step
- Find your usage in kWh
Look for 'kWh used' or the difference between the current and previous meter readings. Many bills show a 12-month usage graph.
- Check your rate plan
The plan name tells you whether you are on a flat rate, tiered rates or time-of-use pricing. Time-of-use plans charge more during peak hours.
- Separate supply and delivery
In states with retail choice, you may buy supply from a third party while the local utility handles delivery. Only the supply part changes when you switch suppliers.
- Calculate your all-in price
Divide the total bill (before past-due amounts) by the kWh used. This is the number to use for savings calculations.
- Compare with last year
Compare the same month last year to filter out seasonal effects. A big jump with similar weather can point to a failing appliance or a rate change.
- Look for programs
Utilities often list budget billing, efficiency rebates and assistance programs on the back of the bill or online.
Common line items
| Line item | What it means |
|---|---|
| Customer or service charge | Fixed monthly fee, regardless of usage |
| Supply / generation | The cost of the electricity you used |
| Delivery / distribution | Maintaining poles, wires and substations |
| Transmission | High-voltage lines bringing power to your area |
| Riders and surcharges | Fuel cost adjustments, energy efficiency programs, storm recovery |
| Taxes | State and local taxes and fees |
Know your real price per kWh
Advertised rates often show only the supply price. Your true cost per kWh includes delivery and fees. Use that all-in number in calculators to see what devices really cost you:
Appliance Electricity Cost CalculatorWhat does a device cost to run?Try the calculator →Frequently asked questions
What is budget billing?
Budget billing spreads your yearly costs evenly over 12 months. It doesn't lower total costs, but it avoids big seasonal swings.
Why did my bill go up if I used less?
Rates, fuel adjustments or fixed charges may have increased. Compare the price per kWh and line items with an older bill.