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Your electric bill, explained

THE SHORT VERSION

Your electric bill has two main parts: a flat monthly fee for being connected, and a charge for how much electricity you actually used. Use is counted in kilowatt-hours. The rest is delivery charges and taxes stacked on top.

Electric bills look like they were designed to confuse you. They were not — but nobody translated them, either. Here is the translation.

The kilowatt-hour, without the headache

Electricity is sold by the kilowatt-hour, written kWh. One kWh is 1,000 watts running for one hour. Picture a bright old-school bulb using 100 watts: leave it on for 10 hours and you used exactly 1 kWh. A big appliance like a dryer might use 3 kWh in one load. Your bill takes everything your home ran all month and adds it up in kWh.

The lines on the bill

Customer charge: a flat fee, often $8 to $15, that you pay just for having service. You owe it even if you use almost nothing. Supply or energy charge: the cost of the electricity itself — your kWh times the price per kWh. Delivery charge: what the utility charges to bring power to your home over its wires. Some bills split these apart; some roll them into one rate. Either way, you are paying for the power and the trip it took to reach you.

A REAL EXAMPLE

Say your home used 900 kWh last month and your all-in price works out to about 15 cents per kWh. That is $135 for electricity. Add a $12 customer charge and a few dollars of taxes and fees, and you land near $155 — before any late fees or add-on programs.

Why the bill jumps

Heating and cooling are the big swing. A hot month means the air conditioner runs for hours, and hours are what you pay for. The bill also shows two dates — when the meter was read last month and this month — so a “month” with 35 days between readings costs more than one with 28. If a bill says estimated, the company guessed your use and will correct it on a later bill.

Watch out for: a sudden huge jump is often an estimated reading catching up, a space heater or AC working overtime, or a billing period that ran long. Check the kWh and the read dates first — those two numbers explain most surprises.

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