Your energy bill reflects three main types of costs:
This is the part of your bill that changes based on how much electricity or natural gas you use. It includes the cost of producing or purchasing the energy you consume.
These are monthly charges that don’t change with use. They cover the cost of keeping your home connected—things like meters, customer service, and maintaining the poles, wires, or pipelines that bring energy to your home.
These may be fixed or variable charges that are directed toward a specific expense or program, for instance energy waste reduction, low-income assistance, or other identified expenses.
Together, these three pieces make up your total energy bill. You can view a full breakdown and examples on our Understanding Your Bill Consumer Tip.
The rate is the price you pay for energy services, for example, the cost per kilowatt-hour of electricity or per unit of natural gas. Rates are reviewed and approved by the MPSC.
The bill is the total amount you owe. It combines:
In summary: Rates are a part of the price you pay, while your bill shows your total charges for the month based on your energy use. A percentage increase in rates does not necessarily mean your total bill will increase by that same amount because the fixed charges and surcharges may go up or down independently of rates. The amount of energy used is the largest driver of costs on your monthly energy bill, particularly noticeable during periods of extreme temperatures.
