Making Sense Of Your Electric Bill

• PDF version of this fact sheet

Your electric bill is generally divided into three categories: delivery charges, supply charges, and taxes.

Traditionally, delivery charges, which cover the cost of getting electricity to homes, have been set by the Illinois Commerce Commission (ICC) after 11-month rate cases. However, Ameren and ComEd now set those rates through a legislatively approved formula that is subject to ICC review.

The cost of the actual power (the supply charge) that ComEd and Ameren send to their customers is left up to the market.

Electricity usage is billed by the kilowatt-hour (kWh)—roughly enough power to clean a load of dishes in the dishwasher or run a window air conditioning unit for an hour. A customer’s previous and current meter readings are listed on the bill, along with the dates they were taken. The difference between the two readings is the electricity usage for the current billing period (typically a month).

A utility company should read a customer’s meter at least once every other month. If it doesn’t read your meter, your monthly bill will be estimated, and “E,” “EST,” or “ESTIMATED” will appear on it. That means your usage for that month was based on last year’s usage for the same month, adjusted for weather.

If the company doesn’t read your meter for two consecutive months, call the utility and find out why. Request an actual reading, or call CUB, at 1-800-669-5556, to learn how to read your own meter.

(You may see some or all of these charges on your bill.)

These rates, which take up a half to two-thirds of your bill, cover the cost of the electricity itself. Electricity prices are set by a market-based auction process. Under law, utilities are not allowed to profit off of this part of your bill.

Purchased Electric (A); Electricity Supply Charge (C). ComEd and Ameren are supposed to pass the energy costs on to customers with no markup. However, this charge may be slightly higher than the actual market price because it is adjusted for other costs, such as “line loss.” That’s when power traveling over the lines is lost as it gives off heat. Utilities have a summer and non summer rate for this charge.

Purchased Electricity Adjustment. Utilities can’t profit off the price of power, so this monthly adjustment, a credit or debit, balances any discrepancy between what the utility paid for power and what you paid in the energy charge.

Supply Cost Adjustment. Covers other administrative costs connected to procuring power. ComEd does not have a line item for this charge, but rolls it into the energy charge.

Transmission Service(s) Charge. Covers the costs of sending electricity from a power plant to your utility. A utility must get Federal Energy Regulatory Commission (FERC) approval to increase this charge.

To see these charges on a ComEd or Ameren bill, see the PDF version of this fact sheet.

These rates, which take up a third to a half of your bill, cover the cost of delivering power to homes, plus a profit for the utilities. When utilities ask the Illinois Commerce Commission (ICC) for a rate hike, they want to increase these rates.

Customer charge. Covers administrative costs of doing business, such as billing, postage, and building rental costs.

Meter Charge (A); Standard Metering Charge(C). Covers meter readings and other services, such as installing, maintaining, and testing meter equipment.

Distribution Delivery Charge (A); Distribution Facilities Charge (C). Covers the costs of maintaining equipment/wires, and other costs not recovered through the customer charge. (Ameren has summer/non-summer rates.)

Ameren (1-800-755-5000)

Customer Charge*: $5.57 per month

*Customer charge listed may include small fees to subsidize heating costs for low-income consumers; to develop renewable energy and clean-coal technology, to recover the costs of real-time pricing programs, which allow homes to pay an hourly rate for power; to cover utility billing costs associated with alternative retail energy suppliers; and an uncollectibles charge.