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How to read an electricity bill

Electricity bills mix energy use with delivery, fixed fees, taxes, credits, and sometimes multiple rate periods.

Find total kWh

The usage section normally shows current and previous meter readings or an interval-data total. Compare billing-period length before comparing two months.

Separate variable and fixed charges

A quick all-in rate divides electricity-related charges by kWh. For a new appliance, the marginal rate in the applicable tier or time window can be more accurate because fixed charges may not change.

Watch for rate structure

Time-of-use periods, seasonal rates, tiers, demand charges, fuel adjustments, taxes, and minimum bills can make one simple cents-per-kWh figure incomplete.

Use the numbers

Apply this guide with one of WattMeasure’s free calculators. Results are planning estimates and should be verified for consequential decisions.

Last reviewed August 6, 2026