Figuring out how your monthly energy rates are calculated can seem confusing. Thankfully, you can find your approximate monthly cost starting with this simple formula:
Monthly Usage (kWh) x Electric Rates ($/kWh) = Approximate Cost per Month
For example, if your household uses an average of 1,200 kilowatt-hours (kWh) each month and your electric rate is 9.8 cents per kilowatt-hour ($0.098/kWh), your estimated cost will be $117.60 per month – plus or minus any usage discounts or upcharges.
Then, be sure to factor in your utility company’s monthly delivery charge and any usage charges for failing to meet any tiered threshold for the most accurate estimates.
Bottom line: Hidden fees and requirements can make a seemingly good deal not so great. Sometimes, the best electricity deals out there might be working with your family to reduce your electricity usage rather than looking for promotions.
To discover the best energy deals near you and determine if switching is in your best interest, enter your ZIP code today and compare electricity plans.