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How to Read Your Electricity Bill
Understand important terminology on your electricity bill.Written by Dominique Sabins
Edited by Jamie Cesanek
Last updated 09/20/2024
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Key Points
- Understanding the terms of your electricity bill can help you identify opportunities to conserve energy and save money.
- Although electricity bills vary slightly depending on your retail electricity provider (REP), they all include the same key information.
- The SaveOnEnergy marketplace is a one-stop shop to find your area's best electricity rates and plans.
Electricity bill FAQ
Most retail electric providers offer the option to pay by mail, online, over the phone, or in person. Make sure to check with your specific provider for details.
The main component of your electricity bill is determined by how much energy you use, measured in kWh and your energy rate. For example, in the sample bill above, the household used 374.00 kilowatts of electricity, and their energy rate is $0.0385300/kWh. If you multiply those two, you get $14.41. Additional charges on your electricity bill include the Utility Distribution Company charge and taxes.
Your energy consumption and the rate in your plan determine most of your electricity bill. If your bill is higher than normal, it is likely because your usage went up. This can happen during more extreme temperatures in the summer or winter. Check to see how your current energy usage compares to previous months to determine if this is the case.
One way to decrease your energy usage is to switch to LED light bulbs, which use 75% less energy and last 25 times longer than incandescent lightbulbs. You can also decrease how often you use your HVAC system since this appliance consumes a lot of energy to cool and heat your home. Enter your ZIP code on SaveOnEnergy to compare cheaper electricity rates in your area.