Electric Calculation

There are five parts that make up a typical residential electric bill. Let’s look at each part by itself.

Electric Usage
Electricity is billed in kilowatt-hours (kWh). Your electric meter is read to determine how many kWhs will be used for billing. In the picture, the meter reading is 40770.


Last month’s meter reading was 40081. The electric usage for this bill would be:

  • Current reading less prior month’s reading

    • 40770 - 40081 = 689 kWh

  • The 689 kWhs are billed at $0.1034 per kWh (for a residential customer)

    • 689 x $0.1034 = $71.24

Electric Base Charge
Electric Base charges are determined by the size of the electric service. The charge for a typical residential customer is $6.50 per month. Larger-sized services for a commercial or industrial customer have higher charges.

Power Cost Adjustment
The Public Service Commission of Wisconsin (PSC) approves the base cost for power and allows the utility to collect or credit customers the difference between the base cost and the actual cost of power. This charge or credit is the Power Cost Adjustment. In November, the Power Cost Adjustment was $0.0075 per kWh.

  • 689 x $0.0075 = $5.17

Public Benefits Charge
This is a fee utilities are mandated to collect for the statewide energy-efficiency program, Focus on Energy, and for low-income bill payment assistance. Residential customers pay $1.33 per month.

Sales tax of 5.5% is charged on your electric charges (not including the Public Benefits Charge) during the months of May through October.

  • ($71.24 + $6.50 + $5.17) x 5.5% = $4.56

Bill Calculation

Electric Usage $71.24                                                                                       
Electric Base $6.50
Power Cost Adjustment $5.17
Public Benefits $1.33
Tax $4.56
Total $88.80

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