Methodology → Electricity Rates
How Electricity Rates Are Presented
This page explains how PriceOfElectricity.com presents electricity rates and converts them into dollar-based monthly estimates.
What an average electricity rate means
The site uses state-level average residential electricity rates. These are blended averages across customer classes and utilities within each state. They represent energy-only prices and typically exclude delivery charges, taxes, and fixed fees that vary by utility.
Rates in cents per kWh
All rates are presented in cents per kilowatt-hour (¢/kWh). This is the standard unit for residential electricity pricing in the United States. To convert to dollars per kWh, divide by 100.
Conversion to monthly bill estimates
The site converts cents per kWh to dollar-based monthly estimates using a standard usage assumption. Household bill estimates depend on this usage assumption; actual bills vary with consumption, climate, home size, and appliance efficiency.
rateDollarsPerKwh = avgRateCentsPerKwh / 100 monthlyBill = rateDollarsPerKwh * 900
The factor 900 represents 900 kWh of monthly usage, a common reference point for typical U.S. residential consumption.
Limitations
Bill estimates are illustrative only. Actual usage varies by household. Time-of-use rates, demand charges, and tiered pricing are not modeled.