Electric rate explainer

The formula

A residential bill is, in almost every US tariff:

1. a fixed charge per month (also called a customer, basic service or facilities charge);
2. energy charges: kWh × the energy rate, sometimes in tiers (a higher or lower rate above a monthly threshold) or by time of day;
3. riders and adjustments per kWh: fuel or purchased-power adjustments, storm recovery, energy-efficiency programs and others;
4. taxes and fees collected for governments.

Divide the total by your kWh and you get your own average price per kWh. That is what EIA reports for whole states and utilities, which is why the average price of a state can be well above the energy rate printed in a tariff. For example, the average US home used 874 kWh a month in 2025 and paid $150.68¹: 17.23¢ per kWh² once every charge is divided by its kWh.

Where to find the numbers

Your utility's tariff (often called a rate schedule or rate book) lists the charges for your rate class; the bill shows the charges you actually paid, including riders. In a retail-choice state, the supply part may come from a supplier: enter the supplier's price as the energy rate and the utility's delivery charges as riders.

Reading the result

If your price per kWh is far above your state's average, the usual reason is low use (the fixed charge weighs more) or peak-time use on a time-of-use plan. The time-of-use guide and the fixed charges guide explain both.