How to Read Your Electric Bill: Business Tips
Does your monthly utility bill confuse you? Most energy bills have detailed breakdowns available to all clients. By understanding the specific charges assessed by your energy provider, you can ask the right questions when it comes to renewing and making energy choices that fit your organization's needs.
Look for kWh and Cubic Feet to Gauge Your Usage
While each utility’s bill differs to some degree, most of the information will be the same, such as the units of measurement. When it comes to your electricity bill, find the reference to kWh (kilowatts per hour) to determine your specific usage. For natural gas, the unit of measurement will vary depending on your utility, so look for either cubic feet, Therms (1 Therm = 100 cubic feet), or MCF (1 MCF = 1,000 cubic feet).
Keep Track of How Much You’re Charged Per Cubic Foot or Kilowatt
To determine your per-unit cost for natural gas or electricity, simply take the entire bill amount, divide it by the amount consumed by your facility over the course of the month, and you’ll arrive at your cost per cubic foot or kilowatt. This will allow you to not only understand what you’re paying, but also understand how that compares to other suppliers in the marketplace.
Work with Your Supplier to Help Make the Right Choices for Your Business
By understanding how to read your monthly utility bill and the associated charges, you can be empowered to ask the right questions of your supplier. This may include making decisions about specific products and services, or optimizing your energy usage during periods of peak consumption, if your supplier offers these programs.