Your electric bill hides real savings behind confusing line items. Once you can read it, you can cut it — and catch mistakes.
Supply vs delivery
Most bills split into supply (the electricity itself, sometimes from a separate provider you can shop) and delivery (your utility moving it to you, usually fixed). Knowing the split tells you what you can actually shop for.
Your rate and usage
Find your usage (in kWh) and your rate (per kWh). Multiplying these is the core of your bill. Watch for tiered rates (higher price above a threshold) and time-of-use rates (price varies by hour).
Fixed charges and fees
A fixed monthly customer charge, plus taxes and various fees, show up regardless of usage. These are mostly unavoidable but worth understanding.
Demand charges (some plans)
Some plans add a charge based on your highest burst of usage, not just total kWh. If you have one, spreading out heavy appliance use lowers it.
Spot problems
Compare month to month and year over year. A sudden jump with no lifestyle change can mean a rate change, a billing error, or a failing appliance. Then attack the biggest loads (lowering your bill).
FAQ
What is the difference between supply and delivery on my bill?
Supply is the cost of the electricity itself (sometimes shoppable from a separate provider); delivery is your utility transporting it to you, usually fixed.
What is a demand charge?
A charge based on your highest short burst of usage rather than total kWh. If your plan has one, spreading out heavy appliance use reduces it.