Electric Bill Demystifier

Your electric bill is confusing on purpose. Understand it, then compare plans to find the cheapest one.

1

Your Usage

kWh

Find this on the first page of your bill

2

Per-kWh Charges

These multiply by your usage (enter in cents, just like your bill)

3

Flat Monthly Charges

Fixed fees that don't change with usage

4

Surcharges & Credits

Extra fees or credits that trigger based on your usage

Charge example: "$9.95 fee when usage exceeds 1,000 kWh" — set to Charge, threshold 1000, Flat $, fee 9.95

Credit example: "$150 credit when usage exceeds 2,000 kWh" — set to Credit, threshold 2000, Flat $, fee 150

Where to Find Your Numbers

Here's a real rate plan document. Every plan has these same pieces — just look for the highlighted items below.

Sample electricity rate plan document

Energy Rate → Step 2

15.294¢/kWh — enter as 15.294 in "Energy Rate"

Delivery Charges → Steps 2 & 3

5.5833¢/kWh goes in Step 2, $4.23/mo goes in Step 3

Base Charge → Step 3

$0.00/mo here, but some plans charge $5–$15

Credit / Surcharge → Step 4

$125 credit when ≥ 1,000 kWh — set as Credit, threshold 1000

How to read your rate plan

  • Energy Rate (per kWh): The cost of the actual electricity. Usually listed as "Energy Charge" or in cents/kWh (e.g., 10.943¢/kWh).
  • Delivery Charge (per kWh): What the utility charges to transport electricity to your house through their wires. Often called "Transmission" or "Distribution."
  • Flat Delivery Fees: Fixed monthly charges just for being connected — you pay these even if you use zero electricity.
  • Surcharges & Add-ons: Extra fees triggered by conditions like exceeding a usage threshold, renewable energy programs, or seasonal adjustments.
  • Credits: Some plans give you money back! For example, a $125 credit if you use over 1,000 kWh. These subtract from your total. Use the Credit (−) dropdown in Section 4.