Everyone gets them. Those pesky reminders that gas, electric and water are not provided free by the ‘Utility Fairy,’ but are rather commodities for which we must pay. Utility bills are the necessary result of the ease with which we turn on our TVs, wash dishes and stay warm on cold nights. They also serve as monthly updates on our daily lives, how high or low the thermostat was set, how long the lawn sprinklers were left on and when the new freezer was installed. With the right information anyone who gets a utility bill can assess their own usage, understand where their money is being spent and consider ways of subtly changing their habits to lower both usage and bill amount.

In addressing electric, gas and water bills, each utility has streamlined the accounting process in an attempt to clearly state charges and balances; because of this many bills have several things in common:

1. Meters – these are the simple devices that record the amount of a commodity being used, as new technology develops, they are updated by the utility companies so that many meters can be electronically read. An electronic reading occurs without any effort of the customer, instead a sub-contracted meter-reading company patrol neighborhoods in a vehicle that records signals being sent from meters on private property. Other ways that meters can be read include by a.) a company representative, b.) an estimate based on previous usage, or c.) a customer who reads the dials on the meter and reports them to the utility company.

2. ‘Customer Charge’ or ‘Basic Service Charge’ – this is the amount that utility companies charge customers to cover the costs of reading meters, service equipment and billing. This is a set amount that does not vary based on usage and is charged even if no electric, gas or water is being used: if you have an active utility account this charge will accrue.
3. ‘Prior Billing’ or ‘Previous Activity’ – this is a report of the previous month’s usage and payment. This number is a good way of seeing whether your usage has increased or decreased, sometimes the utility companies include a small graph that has the past year’s usage so that you can see the variations in the different months.
4. Budget Payment Plan – most utility companies offer two ways of paying each month’s bill, either by paying for exactly what was used in the most recent billing cycle or by paying a budget amount. This budget amount takes a wider view of a customer’s usage over all twelve months of a year, since commodities like gas and electric often vary widely based on the season (gas furnace being on only in the winter, electric air conditioners only in the summer). Each estimated month’s bill is averaged into one amount that the customer then pays no matter what their actual usage is, every month. This can be a lifesaver for customers who have large winter gas bills that if paid only during the cold months, would be too much of a strain. Customers can choose which billing amount to pay and both the actual amount and budget amount are usually both listed on the bill. If a customer ends up either overpaying or underpaying when they use the budget plan, the utility company will let the customer know, either crediting them or billing them further. This reckoning usually happens at the end of each year or when the utility account is discontinued or moved to another address.

With all their similarities, you would think utility bills would be a simple matter to understand, but unique factors of each commodity like unit of measure, transmission and seasonal usage can complicate the situation. With a few explanations anyone can understand their billing and take power over their usage. Each utility bill’s specifics are laid out in the articles below…

How to Read Your Electric Bill

How to Read Your Gas Bill

How to Read Your Water Bill

Gwen Morton is an Energy Auditor for CCI, she has worked on CCI’s Green Neighborhood initiative as well as the Duquesne Light Smart Comfort Program.