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Your account number is the unique ID your utility uses to identify your account. It connects your name to your service address, meter, rate plan, and payment history. You will find it printed on your bill, and you usually need it to pay, sign in online, or call customer service. Keep it handy, but protect it like other account information.

Actual Meter Read

An actual meter read means your bill uses a real number from your meter. The number may be taken by a person or sent in by the meter itself. It is not an estimate. Bills based on real reads show your true use for the period. Your bill usually labels each reading as actual or estimated, so you can tell which you got.

Advanced Metering Infrastructure (AMI)

Advanced Metering Infrastructure (AMI) is the system that links smart meters to your utility. It includes the meters, the network they talk over, and the computers that handle the data. With AMI, the utility can read meters from afar. It can spot outages faster. It can also turn service on or off without sending a truck. It is the hidden system that makes smart meters useful.

Apparent Power (kVA)

Apparent power is the total power the utility's wires must carry to serve you. It is measured in kilovolt-amperes (kVA). Part of it, called real power, does useful work like running appliances. The rest, called reactive power, supports gear like motors but does no direct work. The link between the two is called power factor. Apparent power mostly matters for business bills. Homes are usually billed only on real energy use.

Arrears

Arrears means the overdue amount on your account, the part of past bills you have not yet paid. If your account is in arrears, you may face late fees or eventually a shutoff notice. Utilities often offer payment plans to catch up over time, and some have programs that forgive part of the overdue balance for customers who qualify. Options vary by utility and state, so it helps to call your utility early.

Autopay

Autopay automatically pays your utility bill each period from a bank account or card you choose, on or near the due date. It helps you avoid forgotten payments and late fees. You should still review each bill for accuracy and make sure to keep enough money in the account, since a failed payment can trigger a returned payment fee. Accepted payment methods and timing vary by utility.

Average Daily Usage

Average daily usage is your total use for the period divided by its number of days. For power, it is shown in kWh per day. Billing periods are not always the same length. So this number gives a fair way to compare month to month or year to year. Many bills show it. You can quickly tell whether a typical day used more or less power than before.

Bill Credit

A bill credit is an amount your utility subtracts from what you owe. You might get one for paying too much before. Credits also come from billing fixes, utility programs, or sending solar power to the grid. If a credit is bigger than your bill, the extra usually rolls over to your next bill. Handling varies by utility.

Bill Discount Program

A bill discount program lowers your bill by a set percent or dollar amount if you qualify. Approval is usually based on household income. Being in programs like SNAP or Medicaid can also count. Once you enroll, the discount usually appears on each bill on its own. You may need to re-verify from time to time. Names, discount sizes, and rules vary by utility and state. Contact your utility to learn what is offered and whether you qualify.

Billing Cycle

Your billing cycle is the schedule your utility follows to bill you. It repeats about every 30 days. Each part of town is billed on its own day. So your cycle may not match the calendar month. Its length can also shift by a few days each month. That is one reason two bills can differ even when your daily use stays the same.

Billing Demand

Billing demand is the demand number your utility bills on, in kilowatts (kW). It is used to figure any demand charge. It often equals your highest measured demand for the period. But rate rules can adjust it. For example, a rule may set a floor or use part of a past peak. That past-peak rule is called a ratchet. Demand charges are most common for businesses. Some home rates have them too. Details vary by utility and rate plan.

Billing Determinants

Billing determinants are the measured amounts your utility plugs into its price formulas. They are used to work out your bill. Common ones include kilowatt-hours used, peak demand in kilowatts, and the number of days in the period. Each line on your bill is usually a price times one of these amounts. Regulators also use these numbers when reviewing and setting rates.

Billing Period

The billing period is the range of dates one bill covers, usually shown near the top of the bill, such as "Service from May 3 to June 2." It runs from one meter reading to the next and is typically around 30 days, though the exact length varies. A longer billing period naturally includes more days of usage, which can make that bill higher.

Budget Billing

Budget billing lets you pay about the same amount each month. Without it, bills can swing up and down with the seasons. Your utility estimates your yearly cost from past use. It divides that into even payments. Now and then, it reviews the plan and settles up any difference. Budget billing does not lower your total cost. It just makes payments easier to predict. Enrollment rules vary by utility.

Consolidated Billing

Consolidated billing puts charges from more than one company on a single bill. In some states, you can choose your energy supplier. There, your local utility's delivery charges and your supplier's energy charges often share one bill. You make one payment. The other option, called dual billing, sends a separate bill from each company. Whether this is offered depends on your state's rules.

Degree Days

Degree days measure how much heating or cooling the weather likely required. They are based on how far each day's average temperature was from a base level, usually 65°F. Cold days add heating degree days. Hot days add cooling degree days. Utilities use them to explain why your bill changed. A month with many more degree days than last year usually means your heating or cooling ran more.

Disconnection Notice

A disconnection notice is a formal warning that your utility plans to shut off your service. It usually comes after unpaid bills. The shutoff happens unless you pay or make arrangements by a set date. The notice must say how much you owe, the deadline, and how to get help. If you get one, contact your utility right away. Payment plans, assistance programs, and other protections may be available. Some cover medical needs or severe weather. Rules vary by state.

Dual Billing

Dual billing means you get two separate bills for your energy service. One comes from your local utility for delivering energy to your home. The other comes from the supplier you chose for the energy itself. You pay each company on its own. This applies in states where customers can pick their own supplier. The other option is consolidated billing, where everything lands on one bill. Offerings vary by state and supplier.

Energy Assistance Program (LIHEAP)

LIHEAP is a federal program run by each state. It helps lower-income households pay home heating and cooling bills. It can also give emergency help if your service is about to be shut off. Sometimes it funds work that makes homes waste less energy. Payments usually go straight to your utility. Whether you qualify depends mainly on household income. Rules, amounts, and sign-up windows vary by state. Check with your state program office or your utility.

Energy Efficiency Surcharge

An energy efficiency surcharge is a small charge on your bill. It funds programs that help customers use less energy. Examples include rebates on appliances, home energy audits, and help sealing up homes. The charge is usually based on how much energy you use. State regulators approve the amount. The name and size vary by utility and state. You may be able to use the programs it funds.

Estimated Bill

An estimated bill is based on a best guess of your use, not a real meter reading. This usually happens when the meter could not be read that period. The guess is based on your past use and may factor in weather. Later, a real reading is taken and your account is fixed. If the guess was too high or too low, a later bill corrects the difference. Bills usually say whether a reading was actual or estimated.

Franchise Fee

A franchise fee is money your utility pays your city or town. It buys the right to place poles, wires, and pipes in public streets. The cost is usually passed on to customers as its own line on the bill. It is often a share of your charges. The amount depends on the deal between your local government and the utility. So it varies by place.

High Bill Alert

A high bill alert is a message sent by text, email, or app. It warns that your current bill is on track to be higher than normal. It can also flag when the bill may pass an amount you chose. Your smart meter data is used to project the bill partway through the cycle. That gives you a chance to cut back or find the cause. It might be a heat wave or a broken appliance. Offerings and settings vary by utility.

Interval Data

Interval data is your power use broken into small time blocks. A smart meter records it, often every 15 minutes or every hour. Instead of one monthly total, it shows when you used power each day. Utilities use it for time-based rates and billing. Many also let you view your own data online. You can spot patterns, like spikes when the air conditioner runs.

Kilowatt (kW)

A kilowatt (kW) measures how fast electricity is being used at any moment. It equals 1,000 watts. Think of it like the speedometer in a car: it shows the rate of use, not the total amount. The total amount of electricity you use over time is measured in kilowatt-hours (kWh), which is what most home bills are based on.

Kilowatt-Hour (kWh)

A kilowatt-hour (kWh) is the unit used to measure how much electricity you use, and it is what most home electric bills are based on. Using 1,000 watts of power for one hour equals one kWh. For example, running a 1,000-watt space heater for an hour uses about 1 kWh. Your meter counts kWh, and your utility multiplies that number by its price per kWh to figure your energy charge.

Late Payment Charge

A late payment charge is an extra amount added when you pay after the due date. It is often a small share of the unpaid balance. Some utilities use a flat fee instead. State rules and approved rates set the amount. Some customers, like those in assistance programs, may be exempt. If paying on time is hard, ask your utility about a payment plan. That may help you avoid these charges.

Load Profile

A load profile is a pattern showing how your power use rises and falls over time. It can be hour by hour or season by season. Many homes use little power overnight and the most in the early evening. Utilities use these patterns to design rates. They also use them to estimate when groups of customers use power. Your own pattern depends on your appliances, habits, and the weather.

Master Metering

Master metering means one meter serves a whole building or complex. The property owner, not each tenant, is the utility's customer. Residents usually pay for energy through rent. Sometimes the owner bills them using private submeters. Tenants do not see their own use directly. For that reason, many states limit master metering in new buildings. Rules vary by state.

Medical Baseline Program

A medical baseline program helps people who need extra energy for health reasons. Some run life-support gear at home. Others must keep their home at a safe, steady warmth. Enrolled customers get an extra share of energy at the lowest price tier. They also get extra notice before any shutoff. A medical professional usually must confirm the need. Rules vary by utility and state. Check with your utility.

Megawatt (MW)

A megawatt (MW) equals one million watts, or 1,000 kilowatts (kW). It measures how fast power is made or used at one moment. You will hardly ever see it on a home bill. The term mostly describes power plants, solar farms, and other large grid gear. One megawatt can power a few hundred homes at once. The exact number can vary.

Megawatt-Hour (MWh)

A megawatt-hour (MWh) is a big unit of energy. It equals 1,000 kilowatt-hours (kWh), the unit on your home bill. Power companies and markets use it to count what big plants make and sell. For scale, a normal US home uses about 10 MWh in a year.

Metered Demand

Metered demand is the highest power use your meter actually recorded during the period. It is usually measured as your average use over a short window, like 15 or 30 minutes. It shows your real peak before any rate rules change it. The number you are billed on is called billing demand. It may match, or rate plan rules may adjust it.

Meter Multiplier

A meter multiplier is a number used to scale up your meter's reading. Your true use equals the reading change times that number. Some meters, mainly on large buildings, track only a slice of the power flowing. So the reading must be scaled up. For most homes the multiplier is simply 1. That means the meter reads use directly. If your bill shows a multiplier, it is part of the math.

Meter Reading

A meter reading is the number taken from your meter. The meter keeps a running count of all the power, gas, or water your home has used. Your utility subtracts the last reading from the new one. The difference is what you used and what you pay for. Readings can be taken in person or sent by a smart meter. If no reading is possible, the utility may estimate one.

Paperless Billing

Paperless billing means your utility bill arrives by email or online instead of by mail. You usually view it through your online account. The charges, the due date, and your duty to pay stay the same. Only how it arrives changes. It can cut clutter and mail delays. Some utilities offer small perks for signing up. You can usually switch back to paper if you prefer.

Payment Arrangement

A payment arrangement is a plan you set up with your utility. It lets you pay an overdue balance in smaller chunks over several months. You keep paying new bills at the same time. It can help you avoid shutoff and extra fees. You may need to make a down payment. Missing plan payments can put your service at risk again. Terms vary by utility and state, so ask your utility what plans it offers.

Peak Demand

Peak demand is the highest amount of power used at one time. For your home, it is your biggest burst of usage during the billing period. For the grid, it is the time when everyone's usage adds up to the most, often on very hot or very cold days. Utilities must build enough equipment to handle these peaks, which is why some rate plans charge more during peak hours or for high peak demand.

Percentage of Income Payment Plan (PIPP)

A Percentage of Income Payment Plan (PIPP) caps what some customers pay for utility service. Instead of the full bill, they pay a set share of their household income. The plan is for customers with lower incomes who qualify. Many plans also forgive part of old unpaid balances when the customer pays on time. PIPPs exist only in certain states and at certain utilities. Income limits and terms vary. Check with your utility or the program office to see if you qualify.

Power Factor

Power factor measures how well a building uses the power sent to it. The scale runs from 0 to 1. A low power factor means the utility must push extra current through its wires for the same useful power. That adds strain and cost to the system. Utilities often charge businesses a penalty for low power factor. Homes are usually not billed for it.

Prepaid Billing

With prepaid billing, you pay for power before you use it. There is no bill afterward. Your use draws down your account balance. The utility sends alerts when the balance gets low, so you can add funds. If it runs out, service may be shut off. Consumer protections apply, and rules vary by utility and state. Prepaid plans often skip deposits and late fees, but terms differ by program.

Proration

Proration means adjusting charges to match a partial or unusual billing period. For example, if you start service in the middle of a billing cycle, fixed monthly fees are split so you pay only for the days you had service. Utilities also prorate when a billing period is longer or shorter than usual or when your rate changes mid-period. The goal is that you pay only for what applied during your actual service days.

Public Purpose Charge

A public purpose charge is a small fee on utility bills. It pays for programs that help the public. These include help for lower-income customers, energy saving rebates, and support for clean power. State regulators approve the charge. Most customers in the area pay it based on their use. What it funds, and what it is called, vary by state. Many of the programs it supports are open for customers to use.

Rate Code (on a Bill)

The rate code on your bill shows which pricing plan applies to your account. The plan is also called a rate schedule or tariff. It sets the prices and rules used to figure your charges. For example, a standard home rate differs from a time-of-use rate, which prices power by time of day. Curious whether another plan fits you better? You can ask your utility or look up the code on its website.

Reconnection Fee

A reconnection fee is a charge to turn your service back on after a shutoff. This usually follows unpaid bills. It covers the cost of the work. A worker may visit, or the meter may be switched on from afar. Remote reconnections often cost less. Before service returns, you usually must pay the overdue balance or set up a plan. A deposit is sometimes needed too. Fees and rules vary by utility and state.

Returned Payment Fee

A returned payment fee is charged when a payment you made does not go through. A bounced check is one example. A failed bank withdrawal is another. Besides the fee, your original bill remains unpaid. Late charges could also apply until you pay with a method that clears. Fee amounts are set by the utility within state rules. They vary by utility and state.

Service Address

The service address is the place where your utility delivers service. It is the home or building hooked to the meter. It can differ from your mailing address, which is just where bills go. The utility uses it to find the right meter, send repairs, and track outages. So make sure it is correct on your account.

Shutoff Protection

Shutoff protection refers to rules that stop or delay a shutoff for unpaid bills in certain cases. Examples include extreme heat or cold. A serious health problem in the home counts too. So does keeping up with a payment plan. These protections buy time. They do not erase what you owe. The rules and how to claim them vary by state and utility. If you are at risk, contact your utility right away.

Smart Meter

A smart meter is a digital meter. It records your power use in small chunks of time, often every 15 minutes or every hour. It sends that data to your utility on its own. So there are no estimated reads from missed visits. Outages can be spotted faster. You can often see your detailed use in your online account. Smart meters also allow plans where prices change by time of day.

Submetering

Submetering means a building has one main utility meter plus smaller private meters. The small meters track each unit's use. The landlord or a billing company uses those readings to split the building's utility cost. Each tenant pays based on what they actually used. Many states regulate submetering. Rules often require accurate meters and limit charges to the actual cost. Tenant protections vary by state.

Taxes and Surcharges (Utility Bill)

Taxes and surcharges are the extra line items on your bill. They sit beyond the cost of the energy itself and its delivery. Taxes go to state or local governments. Surcharges are fees approved by regulators to cover set costs. Examples include energy saving programs, help for lower-income customers, and storm repairs. Which items appear, and how big they are, depend on where you live and your utility.

Usage Alert

A usage alert notifies you when your energy or water use passes a level you set or behaves unusually, sent by text, email, or app. It draws on smart meter data, so you can catch things early, like a spike in usage, a possible water leak, or simply spending more than planned. You can often choose your own thresholds. Features and availability vary by utility.

Usage History

Your usage history is the record of how much energy or water you have used over time, often shown as a 12- or 13-month chart on your bill or in your online account. It helps you compare this month to the same month last year and spot unusual changes. Utilities also use it to estimate bills and set budget billing amounts. With a smart meter, you can often see usage by day or even by hour.

Utility Deposit

A utility deposit is money you may need to pay up front before service starts. It is most common for new customers or those with past payment problems. The deposit is held as security and often earns interest. You usually get it back after a stretch of on-time payments, or when you close your account. Anything you still owe is taken out first. Amounts and refund timing vary by utility and state.

Weather Normalization

Weather normalization is a math adjustment. It shows what your energy use would have been with typical weather. Very hot or cold spells drive heating and cooling use up. It helps tell real changes in habits or gear apart from weather swings. Utilities use it for forecasts and program reviews. Some also use related tweaks in rates, with regulator approval. Practices vary by utility and state.