How to read your electric bill
To find your real electricity rate, take your total bill divided by the kWh used that month — that's your all-in price per kWh, and it's the number to use in the calculator. The bill breaks into a per-kWh energy/supply charge, separate delivery (transmission/distribution) charges, a fixed monthly customer charge, and taxes and fees. The advertised supply rate is usually lower than your effective all-in rate.
What's on a typical bill
| Line item | What it means | Roughly how much |
|---|---|---|
| kWh used | Total energy this billing period | ~850–950 kWh/month typical |
| Energy / supply charge | Cost of the electricity itself, per kWh | Largest variable line |
| Delivery / transmission | Cost of the wires to your home, per kWh | Often 30–50% of the total |
| Customer / service charge | Fixed monthly fee regardless of use | ~$5–$25/month |
| Taxes & fees | State/local taxes, surcharges | A few percent |
Work out your effective rate
Suppose your bill is $150 for 900 kWh. Your effective rate is 150 ÷ 900 = $0.167, i.e. about 16.7¢ per kWh. For reference, the US residential average is about 18.56¢/kWh (March 2026, EIA) — see how your state compares on the state pages.
Frequently asked questions
How do I find my electricity rate per kWh?
Divide your total energy charge by the kWh used that month, or look for a line like "$/kWh" or "price per kWh" on the bill. Your all-in rate (energy + delivery + fees ÷ kWh) is usually higher than the advertised supply rate.
Why is my bill higher than rate × kWh?
Most bills add fixed charges (a monthly customer/service charge), separate delivery/transmission charges, taxes and fees on top of the per-kWh energy charge. The effective all-in price per kWh is total bill ÷ kWh.
What is the difference between supply and delivery charges?
Supply (or generation) is the cost of the electricity itself; delivery (or transmission/distribution) is the cost of the wires that bring it to you. In deregulated states you can shop the supply portion, but delivery stays with your local utility.
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Last updated: 2026-06-20