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How to read your electric bill

Bills look different from utility to utility, but most have the same parts. Here's a simplified example with each part explained. Your own bill may name them differently.

Example Electric Co.1 Account ****-4821 · 12 Sample Street
2 Service Sep 3 to Oct 2 (30 days) · Actual reading
3 You used 842 kWh4 6-month history
5 Supply: 842 kWh × $0.0910$76.62
6 Delivery: 842 kWh × $0.0640$53.89
7 Customer charge$12.00
8 Taxes and fees$8.55
9 Amount due Oct 24$151.06

All figures are made up for illustration.

  1. 1

    Account and service address

    Check the address is yours. Keep the account number private: don't give it to door-to-door or phone sellers. Read more

  2. 2

    Billing period and meter reading

    The dates covered and whether the reading was actual or estimated. An estimated reading can be corrected later, up or down. Read more

  3. 3

    Usage in kWh

    How much electricity you used. This is the part of the bill you control most. Read more

  4. 4

    Usage history graph

    This month compared with recent months and the same month last year. Big jumps are worth investigating. Read more

  5. 5

    Supply (generation) charges

    The cost of the electricity itself. In some states you can choose who supplies it; your utility shows a "price to compare". Read more

  6. 6

    Delivery (distribution) charges

    The cost of the wires and poles bringing power to you. Set by regulators and the same whoever supplies your electricity. Read more

  7. 7

    Fixed monthly charge

    A set customer or service charge you pay even if you use nothing. Read more

  8. 8

    Taxes, fees and riders

    Taxes and regulated surcharges. Usually small, and you can't change them. Read more

  9. 9

    Amount due and due date

    Pay on time to avoid late fees. If you can't, call before the due date and ask about payment plans and budget billing. Read more

Your real rate

Take the bill total, subtract the fixed customer charge, and divide by the kWh used. In the example: ($151.06 − $12.00) ÷ 842 kWh ≈ 16.5 cents per kWh. Use your own figure in the energy cost calculator.