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Your electric bill is calculated by your energy usage (total watts used) multiplied by the electric rate for your home or business.
Energy usage is measured in kilowatt hours (kWh). A kilowatt equals 1000 watts. A kilowatt hour equals 1000 watts for 1 hour.
Using 1 kWh of power at a rate of $0.12 per kWh costs $0.12.
Using 10 kWh of power at a rate of $0.12 per kWh costs $1.12.
Calculating the electric rate from your bill can be a little tricky. There are usually categories of charges and credits to determine your electric rate.
In the example below, add the amounts in the “rate” column, but subtracting the “deferred energy adjustment” credit amount. The electric rate for this bill is $.12047. Note the service charges are flat rates and are not affected by your energy usage. These charges are not included in your electric rate.
It is common for electric rates to change slightly over a short period of time. When using the energy usage calculators, calculate your exact rate for a given month, or use this “Average Electric Rates by State” link.