How to Calculate Electricity Cost From Your Utility Bill
Find your true cents-per-kWh rate so you can plug an accurate number into the WattShare savings calculator.
Why your bill rate matters
Most people only look at the dollar total on their electric bill. But to compare retail vs. wholesale pricing, you need the true rate you pay per kilowatt-hour (kWh). That number is usually split across two sections of the bill — supply (generation) and delivery (transmission & distribution).
Step 1: Grab a recent bill
Pick a bill that reflects your typical usage — ideally a recent month that wasn't unusually hot or cold. You will need two numbers from it:
- Total kWh used — usually printed near the top or middle of the bill.
- Total charges — the amount you actually paid for electricity (before taxes and non-electric fees).
Step 2: Identify supply vs. delivery charges
Bills are usually broken into at least two categories. Look for language like this:
Supply / Generation
The cost of the actual electricity. This is the part that competitive suppliers and wholesale programs can replace or reduce.
Delivery / Transmission & Distribution
The cost of moving electricity over wires to your home. You usually still pay this to your utility even if you switch suppliers.
Some bills combine these into one line. Others break them out in detail. If you see multiple line items with rates like $0.0892/kWh or 8.92¢/kWh, those are your per-unit charges.
Step 3: Strip out fixed fees
Many bills include a flat monthly service fee (for example, $10–$15) that does not change with usage. For a fair per-kWh comparison, subtract fixed fees from the total before you divide by kWh.
(Total electric charges − Fixed fees) ÷ Total kWh used = True rate per kWh
Step 4: Work through an example
- Total electric charges: $142.50
- Fixed monthly service fee: $12.00
- Total kWh used: 950 kWh
Calculation
($142.50 − $12.00) ÷ 950 kWh = $0.1374/kWh = 13.74¢/kWh
That 13.74¢/kWh is the number you should enter in the WattShare calculator as your current retail rate.
Step 5: Watch for time-of-use or tiered rates
Some utilities charge different rates depending on the time of day or how much you use in a month. If your bill has multiple tiers (for example, 12¢ for the first 500 kWh and 16¢ after), use a blended average for the calculator.
Tip: If your rate changes seasonally, run the calculator with both your summer and winter bills. The 40-year projection will give you a range to plan around.
Ready to compare?
Now that you know your real rate, head back to the WattShare calculator and plug it in alongside your home size and state. You'll see exactly how much a wholesale rate could save you over 1, 10, 20, 30, and 40 years.