Understanding Your Electricity Bill
Your electricity bill is based on energy consumption measured in kilowatt-hours (kWh). Understanding how appliances contribute to your bill helps you make informed decisions about energy usage and identify opportunities for savings.
How Electricity Billing Works
Utility companies charge by the kWh. One kilowatt-hour equals using 1000 watts for one hour, or equivalently, 100 watts for 10 hours, or 10 watts for 100 hours. Your bill = Total kWh × Rate per kWh + fixed charges/taxes.
Finding Your Electricity Rate
Check your utility bill for the rate per kWh. Note that rates may vary by: time of use (peak vs off-peak), season (summer vs winter), usage tier (higher usage = higher rate), and customer type (residential vs commercial).
Energy Saving Tips
- Switch to LED bulbs: Uses 75% less energy than incandescent
- Unplug idle electronics: Phantom loads cost $100+/year
- Use smart power strips: Auto-cut power to idle devices
- Set AC to 78°F: Each degree lower adds 3-5% to cooling costs
- Run appliances during off-peak hours: If your utility offers time-of-use rates
- Wash with cold water: 90% of washing machine energy heats water