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How Your Pennsylvania Electricity Bill is Calculated

Written By: Jesse Shaver

Last Updated: 08/02/2023

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Pennsylvania residents get the power to choose their electricity providers and prices. This right is known as Energy Choice.

With this freedom to choose, you are given access to more options, better competitive rates, and ultimately more control over your electricity. Energy Choice seriously impacts how much you pay each month for power.

And with the Pennsylvania Public Utilities Commission forecasting average hikes of 40% to 60% in rates over the next few years due to summers getting hotter and the demands on the power grid increasing with surges in population choosing the right provider is key.

However, with so many electricity providers to choose from and multiple billing factors to consider, finding the right Pennsylvania electricity plan for you can quickly feel overwhelming. Not to worry though, we are here to lend a hand.

Today, we are covering how to understand your electricity bill so you can save more every single month. After this quick 3-minute read, you will be confident that you’re choosing the best electric plan that’s right for you and your loved ones.

Let’s dive in. And if you want to skip ahead and see how much you can save in your local area today just enter your zip code above in the free Rate Comparison Tool at the top of the page.

Your Pennsylvania Electricity Bill Explained

To understand how your electricity bill is calculated, you need an understanding of how electricity bills in Pennsylvania work.

Overview of your Texas electricity bill

Your electricity bill is split into two sections: delivery charges and supply charges.

1) Delivery Charges

These are the charges to transport electricity from the power plant, through the electric grid, to your home. Delivery charges are broken into 2 categories.

  • Delivery fees: A fixed fee you pay every month no matter how much electricity you use. This fee is usually between $4-$10 depending on your utility company.
  • Delivery Charge: This is a charge by the kilowatt-hour (kWh) for the amount of electricity you use.

Delivery charges are approved by the state and are the same for everyone under that utility. This means that how much you spend on delivery charges won’t change depending on your electricity provider or plan.

2) Supply Charges

Supply charges come from your electricity provider and pay for the electricity you use. Here are some of the most common charges, fees, and credits.

  • Energy Charge: This is a charge per Kilowatt-hour (kWh) for the total amount of electricity you use.
  • Minimum Usage Fee: This is a fee that’s charged to your account if you don’t use a minimum amount of electricity each month. Not all plans have minimum usage fees (it’s important to check with your provider).
  • Usage Credits: Money deducted from your bill. This is applied after you use a certain amount of electricity (usually 1,000 kWh) within a month. This is not a charge, however, it falls under the “supply charges” section because your electric provider supplies this credit. Not all plans have usage credits – you can check using our platform.

You can find all these charges including delivery charges for any Pennsylvania electric plan by reading PA's electrical disclosure contract.

How To Use This Info To Get The Best Pennsylvania Electricity Plan For You

As you can see, your electric bill is calculated based on more than how much electricity you use. There are multiple factors that go into the total cost. This is why you will see different rates for different usage levels on your plan.

Most providers advertise their rates at 500 kWh, 1,000 kWh, and 2,000 kWh. The problem is that most people don’t use these specific amounts. Because of things like usage credits and minimum usage fees, small changes in your electricity consumption can drastically change the cost of your plan.

This is why it’s essential to understand how much electricity your home uses throughout the year. You can find this information by looking at your electric bills over the past 12 months. Be sure to take note of monthly usage fluctuations. You’ll likely use more during the summer months than winter months.

We also have a guide on Pennsylvania electricity rate trends and the historical context here.

Now you have everything you need to know to find the right Pennsylvania electric plan for you. However, even with this information, you’ll quickly run into another problem. You now have to calculate the cost of each electricity plan at your usage levels, which is a time-consuming endeavor. Thankfully, can help you there as well.

Find Your Perfect Plan FAST!

At, our mission is to make finding and switching electricity plans in Pennsylvania as easy as possible. That’s why we have a complete database of all the providers and options available in your area.

We take the time-consuming process of finding, comparing, and analyzing all the options in your state. We provide you with non-biased, data that you can use to make the right choice for you and your loved ones.

Pennsylvania is one of the few states that has BOTH deregulated electricity AND natural gas – so don’t miss out on your chance to dramatically save on your electricity bill instantly!

As of January 2022, over 1.46 million residents and more than 300,000 businesses have switched to a retail electricity provider in Pennsylvania. You’re next in line to save.

What are you waiting for? Discover the right Energy Choice for you! To get started, enter your ZIP Code above in our free Rate Comparison Tool.