How to read your electric bill and find your real price per kWh

The price on a state average table is not always the price on your bill. Your bill is built from a few parts, and once you know them you can work out your own all-in price per kWh and use it in any calculator.

Usage (kWh)

Look for the meter readings and the kWh used in the billing period. Billing periods are not always exactly a month, so note the number of days when you compare bills.

Energy or supply charges

This part scales with your usage: kWh multiplied by a rate per kWh. Some utilities split it into generation or supply and a separate transmission or delivery charge per kWh. In areas with retail choice, the supply part may come from a different company than the delivery part.

Fixed charges

Many utilities add a monthly customer or service charge that you pay even if you use very little. It makes small bills look expensive per kWh. Enter it in the "fixed monthly charge" box of the calculator to include it.

Tiers and time of use

Tiered rates charge more per kWh once usage passes a set amount. Time-of-use rates charge more at peak hours and less at night or on weekends. If you are on either, the price per kWh changes with when and how much you use, and a single average is only an approximation.

Taxes, fees and credits

Bills can include state or local taxes, public-purpose or efficiency program charges, fuel or power-cost adjustments that change month to month, and credits, for example for rooftop solar exports.

Your all-in price

Divide the bill total by the kWh used. For example, a bill of $120.00 for 800 kWh is 12,000 cents ÷ 800 = 15.00¢ per kWh all-in. That is the number to type into the calculator's price box if you want an estimate that looks like your real bill. To compare with neighbours, see your state's average.