What Does Cents per kWh Mean on an Electric Bill?

Power and energy are different

A watt measures the rate at which an appliance uses power. A kilowatt-hour measures energy over time: using 1,000 watts for one hour equals 1 kWh.

Convert cents into a cost

If electricity is listed at 18 cents per kWh, write the price as $0.18 before multiplying. An appliance using 10 kWh at that price creates an energy charge of $1.80.

Why the bill may not have one simple rate

Bills can separate generation, delivery, riders, taxes, and fixed customer fees. Tiered and time-of-use plans also apply different prices to different amounts or hours, so the advertised energy rate may not equal the all-in variable cost of one more kWh.

• Include per-kWh delivery charges in an appliance estimate.
• Keep fixed fees separate because turning off one appliance may not remove them.
• Use each time period's price for schedulable loads such as EV charging.

State averages versus household rates

EIA state values summarize residential revenue and electricity sales for comparison; they are not offers from a specific utility. Start with the state average when no bill is available, then replace it with the household's plan for a personal forecast.