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What is a utility bill?

What a utility bill means, what's on your electric bill, how it's worked out, and what the average household pays.

Last updated October 19, 2026

A utility bill is the bill a utility company sends for a service it provides to your home. Your electric bill charges for the electricity your meter recorded over the billing period, in kilowatt-hours (kWh), at the rates your utility or electricity supplier charges, plus other charges. This page covers the electric bill.

What's on an electric bill?

  • How much electricity you used, in kWh, from your meter. A standard meter is read by hand once a billing cycle; a smart meter sends its readings to the utility automatically.
  • The price per kWh, from your rate. On a time-of-use rate the price depends on when you used the power.
  • Other charges. Among the charges the EIA counts in what utilities bill are customer service charges, demand charges, environmental surcharges, franchise fees and fuel adjustments.
  • Delivery and supply.In states where you can buy electricity from a supplier rather than your utility, you pay the supplier for the electricity and the utility for delivering it; the utility's delivery service includes billing and maintaining the lines. In Texas, retail electricity providers bill for both. Where that applies is on electricity rates by state.

How is an electric bill calculated?

Mostly as the kWh you used times the price per kWh, plus the other charges on your rate. So a bill rises with how much you use and with the price. What that price pays for, according to the EIA: building, financing, running and maintaining power plants, the largest part, and the transmission and distribution lines that bring the power to you. Retail prices are usually highest for homes and businesses, because it costs more to distribute electricity to them.

Utility bills: FAQ

What is a utility bill?
A utility bill is the bill a utility company sends for a service it provides to your home. An electric bill charges for the electricity your meter recorded over the billing period, measured in kilowatt-hours (kWh), at the rates your utility, or your electricity supplier, charges.
What is an energy bill?
Usually the same thing: the bill for the energy your home uses, such as the electric bill from your utility. It charges for the kWh you used at your rate, plus other charges.
What is on an electric bill?
How much electricity you used, in kWh, from your meter; the price per kWh; and other charges. Among the charges the EIA counts in what utilities bill are customer service charges, demand charges, environmental surcharges, franchise fees and fuel adjustments. Where you buy electricity from a supplier rather than your utility, you pay the supplier for the electricity and the utility for delivering it.
How is an electric bill calculated?
Mostly as the kWh you used times the price per kWh, plus other charges such as a customer charge.

Data from EIA Form 861 (sales, customers, meters and time-based rates), every source we read.