You only need two numbers from your bill: the total amount and the kWh used.
What the analyzer tells you
A bill is high for one of two reasons, or both: you pay a high price per kWh, or you use a lot of kWh.
- Your real rate: bill total ÷ kWh. It includes fixed charges, taxes and fees spread over each kWh.
- Rate compared with your state: your rate against your state's average residential price (EIA, Table 5.6.B), which is also total revenue ÷ kWh sold.
- Use compared with the U.S.: your use, adjusted to a 30-day month, against the U.S. average of about 899 kWh per month per residential customer in 2022 (EIA).
If your rate is high
Check your plan: time-of-use and tiered plans charge more at some hours or above a monthly amount. A small bill with fixed monthly charges also gives a high price per kWh. Ask your utility which plans you can choose.
If your use is high
Heating, cooling and water heating usually use the most energy at home, and summer and winter bills are higher. Look for appliances that run many hours, such as space heaters, pool pumps or old refrigerators: the appliance energy cost calculator shows what each one costs.
Example: the same bill in different states
A $200 bill for 1,000 kWh means a real rate of 20¢ per kWh. In California that is well below the state average of 33.25¢, while in Texas or Florida, where the average is about 16¢ and 15¢, it is above average. The table below shows the comparison for five states.
How to read your result
- Your real rate includes everything on the bill: energy, delivery, fixed charges, taxes and fees.
- Compared with your state: a big difference usually comes from your plan (time-of-use, tiers or a high fixed charge) or from your utility's rates.
- Your use compared with the U.S. average shows whether usage, rather than price, is the reason for a high bill.
- Use per day is useful to compare bills with different numbers of days.
Common reasons for a high bill
- Season: heating and cooling raise use in winter and summer.
- A new or failing appliance, such as a space heater, a dehumidifier or an old refrigerator.
- More days in the billing period: compare use per day, not the total.
- A rate change or the end of a promotional rate.
- An estimated reading: check whether the bill says "estimated" and compare with your meter.
If your use is high, find where it goes with the appliance energy cost calculator.