How to Read Your Electricity Rate on a Bill
Worksheet accuracy starts with the right rate. This guide shows how to locate the energy charge, separate customer fees, and decide when a single average $/kWh is good enough.
Energy charge vs customer charge
The energy charge is usually priced per kWh. A customer or service charge is a flat monthly fee. Flat-rate worksheets can add the fee separately, as in the electricity cost calculator.
Tiered and time-of-use rates
If your bill shows multiple prices by usage block or hour of day, a single average rate is only an approximation. Compute a blended rate from total energy charges ÷ total kWh for a rough worksheet input.
Taxes and riders
Franchise fees, riders, and taxes may appear as separate lines. Decide whether you want them inside the rate you enter or modeled as part of a fixed fee.
Quick bill checklist
1
Find total kWh
Confirm the billing-period usage.
2
Find $/kWh lines
Note if more than one energy price appears.
3
Note fixed fees
Customer charge, meter fee, minimum bill.
4
Enter into a worksheet
Use electricity cost for month totals; kWh cost for a single block.