How to Read Your Electric Bill, Line by Line

Most people look at one number on an electric bill: the amount due. But the rest of the page tells you whether you used more power, paid a higher price, or got hit with a new fee. Every utility’s layout is different, yet the same parts show up on almost all of them.

1. Account and billing period

At the top: your account number, service address and the dates the bill covers. Note the number of days. A 34-day period will cost more than a 28-day one even if nothing changed, so divide kWh by days if you want a fair comparison.

2. Meter readings

Your meter’s previous and current readings, with the difference as your usage in kWh. Look for a note such as “estimated” or the letter “E”. If the utility estimated last month, this month can carry extra usage once the real reading catches up.

3. Usage (kWh)

This is the number to watch. Many bills show a bar chart of the last 13 months, which lets you compare this month with the same month a year ago. If kWh went up and the weather was similar, something in the home changed.

4. Supply or generation charges

The cost of the electricity itself, usually priced per kWh. In states with retail choice, this line may come from a separate supplier you picked, and a promotional rate can end and switch to a higher variable rate.

5. Delivery or distribution charges

What your local utility charges to move power over its wires to your home. Often part per-kWh and part fixed.

6. Fixed customer charge

A flat monthly fee that doesn’t depend on use. It is why a nearly empty vacation home still gets a bill.

7. Riders, adjustments and taxes

Smaller lines for fuel cost adjustments, energy-efficiency programs, storm recovery and local taxes. Each one is small, but together they can add a noticeable share.

Put it together: find your real price

Compare your real price with your state’s average on our electricity cost by state page, for example Ohio or Texas.

A two-minute check every month

• Is the reading actual or estimated?
• How many days does the bill cover?
• Did kWh rise compared with the same month last year?
• Did your price per kWh change? (charges ÷ kWh)
• Is there a new line or a bigger fixed fee?

If kWh is up, see why your electric bill is high. If the price is up, call your utility or supplier and ask about your plan. To see what any appliance adds, use our utility cost calculator.

Tiered and time-of-use rates on a bill

Some bills split usage into tiers: the first block of kWh at one price, the rest at a higher price. Others show time-of-use periods, such as on-peak and off-peak, each with its own price. If your bill has these, your effective price depends on when and how much you use, so shifting laundry or dishwasher runs to off-peak hours can lower it.

Budget billing and balances

If you’re on budget billing, the amount due is a fixed monthly payment based on your yearly average, and the bill will show a running balance between what you used and what you paid. Look at the usage and charges sections, not the amount due, to see how this month compares.

When to call the utility

• Two estimated readings in a row.
• A big jump in kWh with no change in weather or appliances.
• A fee or rider you don’t recognize.
• A meter number on the bill that doesn’t match the meter at your home.
• If you are behind on payments: ask about payment plans and assistance programs before the due date.