Use an all-in historical price
Find the total charges for electric service and the total kilowatt-hours used for the same billing period. Divide dollars by kWh. The result is an all-in historical price expressed in dollars per kWh.
Example
If a bill shows $186 in electric charges and 1,020 kWh, the all-in price is about $0.182 per kWh, or 18.2 cents per kWh. Enter 0.182 in a calculator that asks for dollars per kWh.
Why the advertised rate may not match
A supply rate may exclude delivery charges, riders, fuel adjustments, taxes, and monthly customer charges. Time-of-use plans can apply several prices within one bill.
- Keep the charges and kWh from the same billing period.
- Exclude unrelated services such as gas, internet, or prior balances.
- For solar customers, separate imports, exports, credits, and fixed charges.
When not to use the all-in price
An all-in price is excellent for explaining a past bill. It is less precise for forecasting a new appliance when a large part of the bill is fixed and will not change with usage. For marginal cost, use the variable charge that applies to the additional kWh.
Sources and further reading
EIA: Average prices versus utility ratesCalculations are estimates. Utility bills, appliance measurements, and manufacturer documentation take priority over generic examples.