How to Understand Your Electricity Bill.

We know your energy bill contains a lot of information. We want to help you understand the key terms and the charges reflected in your monthly bill. Understanding its components can help you identify areas where you might save money and manage your energy consumption more effectively. Flip through the overview or watch our video to learn more. ⬇️ 

at-a-glance

Key Components & Charges

Generation (supply)

The cost to produce the electricity you consume.

Transmission

The cost to move electricity from power plants to the local grid.

Distribution (delivery)

The cost to maintain poles, wires, meters, and local service.

Customer Charge

A fixed monthly fee for meter and account maintenance.

Taxes & Regulatory Fees

Local, state or federal charges and utility-specific surcharges.

Adjustments or Credits

Billing corrections, renewable energy credits or time-of-use credits.

know what the numbers mean

Understand Your Usage

Understanding your usage starts with the basics – electricity is measured and billed in kilowatt-hours (kWh). Whether it’s normal usage or high energy culprits like HVAC, water heating, EV charging, or added appliances, tracking your usage over time helps reveal what’s truly driving your costs.

  • A kilowatt-hour is the unit used to measure how much electricity is used. One kWh = 1,000-watt appliance running for one hour or a 100-watt bulb on for 10 hours = 1 kWh.

  • Compare kWh across billing periods (monthly) or look at daily averages to spot trends and anomalies:

     

  • Multiply the kWh used by your per-kWh rate:

     

    Example: Cost = 900 kWh x $0.12/kWh = $108

  • Lower thermostat setpoints, shift high‑use tasks to off‑peak, swap to LEDs, reduce water‑heater temperature, and unplug or schedule big appliances. For bigger savings, consider insulation, HVAC maintenance, or ENERGY STAR appliances.

From the blog

Helpful insights for energy cost savings

Read practical tips, step‑by‑step guides, and quick tools to understand your bill, reduce consumption, and lower your costs.

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