Supply and delivery
Supply or generation charges pay for electricity production or procurement. Delivery charges support the wires, substations, metering, and utility operations that bring electricity to the service address. Both can include variable per-kWh components.
Fixed and variable charges
A customer charge is usually fixed for the billing period. Energy charges vary with kWh. Riders, fuel adjustments, and regulatory charges may be fixed, variable, or percentage-based.
Items that distort a quick comparison
Deposits, prior balances, late fees, payment arrangements, solar credits, estimated readings, and billing corrections can change the amount due without describing current-period consumption.
- Compare current electric charges, not only total amount due.
- Keep gas and other services separate.
- Match every charge to the same billing period.
Use two rates for two questions
The all-in historical price explains what a completed bill cost per kWh. The marginal variable rate is better for estimating the additional cost of a new appliance when fixed charges will not change.
Sources and further reading
EIA: Average electricity pricesCalculations are estimates. Utility bills, appliance measurements, and manufacturer documentation take priority over generic examples.