Why Is My Electric Bill $700 and What Can I Do?

An unexpectedly high electric bill can be concerning. Many homeowners wonder why their monthly cost has surged. Understanding the reasons for a high bill and how to address them is the first step toward regaining control over household expenses and energy consumption. This guide explains bill components, identifies common culprits for increased usage, and provides strategies to manage future costs.

Understanding Your Electric Bill Components

An electric bill includes several distinct elements that determine the total amount due. Electricity consumption is measured in kilowatt-hours (kWh), representing the energy a 1,000-watt appliance uses in one hour. Bills typically break down costs into supply and delivery charges.

Supply charges, also known as generation charges, cover the cost of producing the electricity itself. This portion often represents the largest percentage of the overall energy price. Delivery charges, on the other hand, include the costs associated with transmitting electricity over long distances through a grid network and then distributing it to individual homes via local lines and equipment. These charges account for the operation and maintenance of the electric system, including poles and power lines. Bills may also include fixed monthly fees, taxes, and other surcharges, such as those for public purpose programs. Understanding these different components helps clarify that the total bill reflects not just how much electricity was consumed, but also the infrastructure and services required to bring that power to your property.

Factors Increasing Electricity Usage

Several common factors can significantly increase household electricity consumption, leading to high bills. Heating, ventilation, and air conditioning (HVAC) systems are the largest energy consumers in a home, often accounting for over half of a household’s energy use during extreme weather. When temperatures are severe, HVAC units work harder and longer to maintain comfortable indoor conditions, directly increasing electricity usage.

Large appliances also contribute substantially to energy consumption. Older appliances, such as refrigerators, washers, dryers, and water heaters, often operate less efficiently than newer models, drawing more power over time. Even when turned off, many electronic devices continue to draw small amounts of power, a phenomenon known as “phantom load” or “vampire power.” Devices like televisions, cable boxes, and game consoles can cumulatively account for a notable portion of your electricity bill. Poor home insulation, leaky windows, and unsealed doors allow conditioned air to escape, forcing heating and cooling systems to run more frequently. Inefficient lighting, particularly traditional incandescent bulbs, and changes in household behavior, such as more people spending time at home, also contribute to increased energy consumption.

Steps to Identify Specific Usage Sources

Identifying specific sources of increased electricity usage is key to managing high bills. Many utility companies offer online portals or detailed monthly statements with historical usage data. Reviewing this data helps identify patterns or sudden spikes in consumption, allowing comparison with previous periods. Homes with smart meters can provide granular, real-time usage information, accessible via the utility’s website or apps.

A do-it-yourself (DIY) home energy audit offers practical insights into potential energy inefficiencies. This involves visually inspecting areas like windows and doors for drafts, checking the insulation in attics and walls, and noting the age and condition of major appliances. Simple methods like feeling for air leaks around outlets or light switches can reveal areas where conditioned air is escaping. For a more precise understanding of individual appliance consumption, plug-in energy monitors are available. These devices measure the actual electricity (in kWh) drawn by a specific item over a period, highlighting which appliances consume the most power.

Actions to Reduce Future Bills

Once energy drains are identified, targeted actions can significantly reduce future electric bills. Optimize your HVAC system by setting thermostats strategically, adjusting temperatures when away or asleep. Regular maintenance, like cleaning or replacing air filters, ensures efficient operation and prevents the system from working harder than necessary. Sealing air leaks in ductwork and around windows and doors with caulk or weatherstripping prevents conditioned air from escaping, reducing the workload on your HVAC system.

Improving appliance efficiency also contributes to savings. For large appliances, ensure full loads for dishwashers and washing machines. Upgrading older, inefficient appliances to ENERGY STAR certified models can lead to long-term savings, as these models are designed to consume less energy. To combat phantom loads, consider unplugging electronics when not in use or employing power strips that allow multiple devices to be switched off simultaneously. Smart plugs offer an automated approach by allowing control of power to devices via a smartphone. Enhancing your home’s envelope through adequate insulation and sealing drafts around the house minimizes heat loss in winter and heat gain in summer, making the home more energy-efficient. Switching from traditional incandescent bulbs to energy-efficient LED lighting and adopting behavioral changes, such as turning off lights in unoccupied rooms, are simple yet effective ways to lower consumption.

Addressing Billing Discrepancies

If your electric bill remains high after reviewing usage and implementing energy-saving measures, a billing discrepancy may exist. First, compare the meter reading on your bill with the actual reading on your electric meter. Verifying this ensures billed usage aligns with your meter.

Next, contact your utility company directly to discuss your concerns. Be prepared with your account number, current and previous bills, and any notes on changes in your household or energy usage patterns. Inquire about billing cycles, potential rate changes, or any estimated readings that might have been used instead of actual meter data. If the initial contact does not resolve the issue, you can escalate the complaint through the utility’s formal dispute process. This may involve filing a formal complaint, which could lead to an investigation by the utility or, if necessary, by a state public utility commission. Some utility companies also offer “average billing” or “budget billing” programs, which calculate a consistent monthly payment based on your historical usage, smoothing out seasonal fluctuations and providing more predictable bills.