Your effective rate is what you actually paid per unit: current charges (not past-due balances) divided by kWh used. It folds in supply, delivery, riders and taxes, which is what matters for cost.
The check
- Take the current charges and kWh from one bill. Effective rate = charges ÷ kWh × 100 (in cents/kWh).
- Find your utility's average revenue per kWh for your customer class (commercial or residential) in EIA-861 data. If your utility isn't listed, use the state average.
- A rate well above the average (Conduit uses 15% or more) is worth a closer look; it's an estimate from one bill, so check a few months.
Why it might be high
- The account is on the wrong rate class or tariff for its use.
- Demand charges from a short spike (pumps, HVAC startup).
- A third-party supply contract that expired and rolled to a higher rate.
- Riders or fees added since the last contract.