How do I pay my electricity bill?

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.

How is my electricity bill calculated?

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.

Why is my electricity bill so high?

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.

How can I reduce my electricity bill?

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.

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

Philippe TURPIN/Photononstop/Getty images

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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 explained

We know how frustrating it can be to receive your monthly electricity bill and not understand the charges. Between confusing terms and numbers, it can be easy to skim over your bill without closely reading it. However, understanding your electricity bill is essential to being an informed customer. This guide will help you learn more about your energy bill terms to take control of your energy consumption.

We used an example bill from Constellation Energy to help you break down every section of your electricity bill. Your bill may look different depending on your retail electric provider (REP), but it should contain similar information.

1. Account Information

This section includes your personal details and account number. You’ll need this information to access customer support services or to sign up for a new electricity plan. It may also list the service period, which will tell you when your current electricity plan ends.

2. Current Bill

Here, you’ll find the charges for the past month and your payment due date. You’ll also find your last payment amount and any late fees or bill credits.

3. Bill Overview

The bill overview shows a brief breakdown of how your bill was calculated. You’ll find how much each portion of your service costs, including taxes and utility charges. You’ll also be able to check for extra fees and unnecessary charges.

4. Historical Usage

Many providers include an overview of your energy usage over the past six months to a year. This data can help you pinpoint fluctuations in your energy usage and understand your energy charges during different seasons.

5. Current electricity usage

This part of your bill shows how much energy you used in kilowatt-hours (kWh) for the current billing cycle. Depending on your REP, it may include a comparison to your usage at the same time last year, your average daily usage, or other statistics.

6. Payment Slip

If you pay your electricity bill by mail, you can use this payment slip. Directions for paying online should also be noted in this section.

7. Bill Breakdown

Your bill is calculated based on three components: your electricity supply charge, the Utility Distribution Company (UDC) charge, and taxes. Let’s explore what each of these charges are.

Electricity supply charge: This is the bulk of your bill. The electricity supply charge is the amount of electricity you consume, calculated in kWh, multiplied by the electricity rate stated in your energy contract.
Utility Distribution Company (UDC): Your utility company charges a fee for delivering electricity to your home. This fee may also be called a Transmission and Distribution Utility (TDU) charge.
Taxes: Your electricity bill will include state and city taxes. You may also see MGRT or PUCA charges here. MGRT stands for Miscellaneous Gross Receipts Tax, which is a tax from your utility company. Similarly, PUCA or Public Utility Commission Assessment, is a charge from the Public Utility Commission of Texas. It’s important to note that everyone in your utility area will be charged the same MGRT and PUCA regardless of your retail electric provider.

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.