Reading your Bill

Need electric bill help? Here is a short primer about how to read your bill.

Many consumers don’t understand all the columns and numbers on their electric bills. Most of the time they only look at the amount due and then put the bill in the “to be paid” stack.

Knowing how to read your bill will give you valuable information that you can use to significantly lower your monthly usage and cost. Using this electric bill help will contribute to lower electric bills, not just for a month or two, but for years to come.

What’s on the bill?

Though electric bills can vary by state and by provider, there are two elements that are common to all of them:

• Meter readings. The electric bill will have two meter readings, stated in kilowatt hours (kwh):
  • The previous usage reading (which will show as the current reading on the previous month’s bill); and
  • Your current usage reading, which indicates how much electricity was used since the last billing period.
• List of charges. This section of the electric bill will have the usage from the meter readings converted to electricity cost, stated in charge per kilowatt hour.
• Balance due. This part of the bill not only tells you how much is currently due, but if you are up to date on your payments.

Other information on the bill might include:

• A reference key that explains the meaning of each entry on the electric bill.
• Other information such as special notes, extra charges or an announcement of some sort from the electric company.

Using Your Bill Information

This electric bill help is the first step in making positive steps toward lowering your electric bills.
Once you are able to read and understand the information on your electric bill, you can track your usage and cost over time. If your electric company does not provide historical data for your account on their website, keep track for yourself by logging kilowatt hours used and bill amount on a monthly basis. Use past bills to accumulate 12 months of numbers if possible. Update the log each month when you get your electric bill.

It can be useful to know how your usage and costs compare to other homes like yours and in your location. Consumer information sites such as WattzOn allow you to enter key information about your home and electric usage, then provide a comparison with average usage and cost in similar households and with energy efficient homes in your area. This kind of comparison can be useful in comparing electric providers and making the decision to switch.