Electricity is one of the most regulated products in the world, so your electric bill is probably one of the most complicated. But it’s also an important document that shows you exactly what you are paying for.
Whether it’s the basic service charge, energy charges or capacity cost recovery, each one affects how much you pay to use electricity. Understanding what’s included and how it affects your bill can help you save.
What’s Included?
If you’re a homeowner or business owner, odds are you’ve received an electric bill. That’s because electricity is a necessary part of life. But you may not be aware of the many line items that make up your electricity bill.
The best way to get a handle on what’s in store is to grab a copy of your current or recent electric bill and give it a thorough look-through. You’ll likely see a few line items you’ve never heard of.
The most important item is likely the kilowatt-hour, or kWh, which is the unit of measure for how much electricity is used in a given billing period. It is the most common metric and a good place to start. Other important elements of an electric bill include meters, rates, billing and payment options. You’ll also find other small fees that might be worth a closer look.
Meter Readings
An electric meter records how much electricity you use in kilowatt-hours (kWh). This is the unit of measurement your utility bills you by.
Your meter displays a series of round dials with ten numbers and a pointer like a clock hand that advances when electricity flows through it. These pointers are used to calculate your kWh usage each month and the amount you are billed for.
Some meters also have a digital display that shows five black or white numbers followed by one or more red numbers. If you have a digital meter, write down the first 5 numbers shown from left to right, ignoring any numbers in red.
You may also have a two rate meter, which shows daytime and nighttime rates in different rows on the same meter. The top row is labelled ‘low’ or ‘night’ and the bottom row is labelled ‘normal’ or ‘day’.
Rates
The rates you pay for your electricity are based on how much energy you use (in kilowatt-hours). This is a very important portion of your electric bill because it helps determine the overall cost of the electric service you receive.
Depending on your location, usage, and the general market conditions, your electricity rate can vary significantly from one month to the next. This is why it is so important to compare your current electricity rates with those offered by retail energy providers in your area.
Your electricity bill includes two major types of rates: utility delivery charges and supply charges. The first, called the utility delivery charge, is the amount you pay to Con Ed for transporting energy from where it’s generated to where it’s used.
Payment Options
When it comes to electric bills, we make it our mission to offer you a variety of options. You can pay your bill online, over the phone or in person at one of our authorized payment locations.
You can also use our mobile app to get insights on your energy usage, report outages and check your account balance on the go. There are also a number of programs available to help you pay your monthly electricity bill, from payment agreements to energy assistance.
The best part is you can choose which option will work the best for your family. Our website also offers a free utility billing calculator. Using this tool will help you identify your monthly payments and determine a realistic payment schedule. It can even tell you if you’re eligible for energy assistance, which may reduce your overall costs. The website also has a number of helpful tips and tricks to help you save money.