How to Read Your Electric Bill, Line by Line

Start with the summary box

Grab your most recent bill, paper or PDF. Before reading any line items, find four things, usually near the top: the amount due, the due date, the service period (the dates the bill covers), and the number of days in that period. Those last two matter more than most people think, because a longer billing period means more days of use on the same bill.

For context, the U.S. Energy Information Administration (EIA) reports that the average residential customer used 874 kWh a month in 2025 and paid an average bill of about $150.68^[1]. That national figure hides a wide spread: average bills ranged from under $100 in some states to over $200 in others the same year^[1]. Your own number depends mostly on how much you use and on your local price per kWh.

Line 1: how much you used

Look for your meter readings: a previous reading, a current reading, and the difference, which is your usage in kWh. Next to the reading you may see a code. An "A" usually means actual; an "E," "Est." or the word "Estimated" means the utility estimated your use instead of reading the meter. That label is worth noticing, and we come back to it below.

Many bills also include a small bar chart of your usage over the past year. Some states require it. Ohio's billing rule, for example, requires bills to show the customer's usage for each of the preceding twelve months, the dates of the service period, and an identification of estimated bills^[5].

Want to see where your kWh go? EIA estimates that in 2020, air conditioning was the largest single use of electricity in U.S. homes at about 19%, with space heating and water heating at about 12% each^[4]. In homes heated with electricity, heating can be a much bigger share. Our electricity cost calculator can turn any appliance's wattage into dollars at your own rate.

Lines 2 to 6: what you are charged

Charges are usually grouped into sections. Names vary by utility and state, but most bills include some version of the lines below. Your utility's approved rate schedule, often called a tariff, explains each one.

The customer charge is the part of the bill you pay no matter what. The supply charge and delivery charge are usually priced per kWh, so they rise and fall with use. Nationally, EIA estimates that in 2025 generation made up about 56% of the average electricity price, distribution about 30% and transmission about 14%, across all customer types^[3]. Residential customers often pay a larger share for delivery than that average suggests. We explain the split in Supply vs. delivery charges.

Riders are separate, regulator-approved lines that recover a specific cost, such as fuel, storm repairs or energy-efficiency programs. They can change more often than base rates, and some go down as well as up. Near the bottom you may see taxes and a franchise fee, which is what a city charges the utility for using public streets.

Why is it higher this month? Three checks

1. Compare with the same month last year, not last month. Weather drives most swings in home electricity use, so a hot July naturally beats a mild May. Also compare the number of days: a 33-day bill covers more use than a 28-day bill with the same habits.
2. Look for a rate change. Base-rate increases go through a formal review at the state utility commission. In Pennsylvania, for example, a utility must notify every customer at least 60 days in advance, and the full process can take about nine months^[8]. Riders such as fuel adjustments can change without a full rate case, so compare the per-kWh prices on this bill with last year's.
3. Look for an estimated reading. If the meter was not read for several months and the estimates ran low, the next actual reading can produce one large catch-up bill. New York's regulator notes that utilities must make a special effort to get an actual reading after six months of estimates^[6].

Smart meters have made estimates less common. EIA counted about 123 million advanced (smart) meters among roughly 147 million residential meters in 2024, around 84%^[7]. But estimates still happen, for example when a meter stops communicating.

If the bill still looks wrong

Most regulators expect customers to start with the utility. Many people find it helps to have the bill, the meter reading, and a question written down before calling. Common questions include: Was this reading actual or estimated? Which rate schedule is my account billed on? Did any rates or riders change this period?

If the answer does not resolve the problem, investor-owned electric utilities are overseen by a state public utility commission, and its consumer phone number is often printed on the bill. Ohio, for example, requires the commission's toll-free number on every electric bill^[5]. Municipal utilities and electric cooperatives are often governed locally instead, by a city council or a co-op board.

Unfamiliar terms on your bill? Our glossary covers budget billing, time-of-use rates, estimated readings and more. For the broader picture of electric costs, see the electricity category.