Personal account and contact information
Your bill will have your name, contact information, account number and other basic information featured prominently on each monthly statement. You will also find contact information for your electric provider, which is helpful to retain in your records in case you have any questions about your bills or service.
Types of Plans
If you’re unsure what type of electric plan you’ve signed up for, you should be able to find out by searching for the plan type on your bill.
There are three basic types of electric plans that most electric customers purchase:
- Fixed plans allow customers to lock into a specific rate for a specific amount of time, usually anywhere from six months to two years.
- Variable plans mean that your rate could change each month, based on the electric provider’s costs and the cost of electricity. Most customers with a variable plan aren’t locked into a contract for a specified time and may decide to switch providers to find a more favorable rate without having to pay a termination fee.
- Indexed plans are based each month on a published formula involving the price of a specific energy index.
Meter readings
Your bill will likely show two readings, your electric usage from the last billing cycle and your current usage. Sometimes, an electric provider provides an estimate of your energy usage instead of an actual meter reading since meters aren’t always read each month. Once an actual reading takes place, your provider may lower or increase your next bill to reflect your true electric costs.
Electric rates
Once you’ve determine how much electricity you’ve used, you need to find out how much you’re being charged for the electricity you’ve used. Electricity is measured in a kilowatt-hour, or kWh. A kilowatt-hour is the standard measurement of electricity equal to 1,000 watts used in one hour.
Electric providers are required to tell you how much you paid per kWh during the billing cycle. It is often found near the bottom of your bill and may be written as follows: “Your average rate per kilowatt-hour was (fill-in-the-blank) cents.” This average rate gives you the ability to do an apples-to-apples comparison of other rates offered by competing electric providers, if you live in a deregulated electric market. It will allow you to comparison shop for a new and better plan.
Other Fees and Taxes
Your bill doesn’t include only your electricity usage, but also has some additional charges and fees. You will probably notice transmission and distribution charges and state taxes.
Total Amount Due
Your bill will feature an itemized breakdown of all the charges associated with providing you with electricity during the recent billing cycle. Your total amount due will be based on your meter reading and your rate, and other charges and taxes will be factored in as well.
If you are unclear about specific itemized charges on your electric bill, call your electric provider for an explanation.
