How to Read Your Electric Bill
Your electric bill has two main components: a fixed base charge (a flat fee just for being connected to the grid) and a variable energy charge based on how many kilowatt-hours (kWh) you use.
What Is a kWh?
A kilowatt-hour is the standard unit of electricity. Running a 1,000-watt appliance for one hour uses 1 kWh. The average U.S. household uses about 886 kWh per month, at an average rate of about 13¢/kWh.
Why Did My Bill Go Up?
Common reasons for a higher electric bill include: extreme weather (more heating or cooling), new appliances, a rate increase from your utility, or more time spent at home. If your usage hasn't changed but your bill went up, check for a rate increase notice from your utility.
Top Ways to Cut Your Electric Bill
- Switch to LED bulbs (use 75% less energy than incandescent)
- Adjust your thermostat by 7–10°F when away or asleep
- Wash clothes in cold water
- Unplug devices on standby ("vampire power")
- Run dishwasher and laundry during off-peak hours