How to decode your power bill and budget for 2025

Grusho Anna // Shutterstock January is passing quickly, and as the new year gets underway, many households are taking stock of their budgets. If you’re starting the year slowly or haven’t tackled your financial goals yet, that’s okay–there’s still plenty of time to plan ahead. Power bills are likely high on the list of concerns–especially after the fluctuating costs of recent years. But understanding your power bill doesn’t have to feel overwhelming. Arbor breaks it down: what your bill is telling you, what electricity costs today, and how to take control of your energy spending in 2025. What Your Power Bill Really Says Your power bill can feel like a maze of numbers and charges, but it’s simpler than it looks once you know what to focus on. The two main components are: Supply charges: This is the cost to generate the electricity you use, measured in cents per kilowatt-hour (kWh). For example, if your rate is 15 cents per kWh and you use 1000 kWh, your supply charge is $150. Delivery charges: This covers the cost of maintaining the grid and delivering electricity to your home. These fees are often listed separately and can vary based on your utility. There can be other charges on your bill, but these two make up the majority of your total costs. To get a clear picture of your energy spending, start by checking your supply rate and usage. Multiply your supply rate by your total usage to understand what you’re paying to generate the electricity itself.  What Power Prices Look Like Today As of this month, here’s a snapshot of utility supply rates across several states. These rates are effective now, with some set to expire in the coming months and others locked in through spring or summer 2025. It’s critical to pay attention to expiration dates, as rates may change soon for some utilities. By keeping track of these rates and expiration timelines, you can better plan for your power costs and even take proactive steps to find lower, fixed rates. If you live in one of these deregulated energy markets where there are third-party rates available, you may have access to a rate that is lower than what your utility is offering now. Maryland PEPCO: 12.42 cents/kWh (effective until May 2025) Baltimore Gas and Electric: 11.92 cents/kWh (effective until May 2025) Delmarva Power & Light: 11.91 cents/kWh (effective until May 2025) Potomac Edison/Allegany Power: 9.698 cents/kWh (effective until May 2025) Massachusetts Eversource (Boston Edison – NSTAR): 15.772 cents/kWh (effective through January 2025, drops to 13.347 cents/kWh starting February) National Grid (Massachusetts Electric): 16.055 cents/kWh (effective through January 2025, drops to 14.671 cents/kWh starting February) New Jersey Atlantic City Electric Co: 13.22 cents/kWh (effective until May 2025) Jersey Central Power & Light: 11.665 cents/kWh (effective until May 2025) PSEG: 15.39 cents/kWh (effective until May 2025) Ohio AEP Ohio (Columbus Southern): 7.61 cents/kWh (effective through December 2024, rises to 7.77 cents/kWh from January through March 2025) AES Ohio (formerly DPL): 8.58 cents/kWh (effective until May 2025) Duke Energy: 8.18 cents/kWh (effective until February 2025) Pennsylvania PPL: 10.771 cents/kWh (effective December 2024 through May 2025) Duquesne Light: 10.85 cents/kWh (effective December 2024 through May 2025) PECO: 9.273 cents/kWh (effective December 2024 through February 2025) How to Save on Energy Costs in 2025 Saving on your power bill doesn’t have to mean big sacrifices. Here are a few straightforward steps you can take: Lock-in a better rate: In deregulated markets, you can choose your energy supplier. There are also services available to help you compare rates and find the best deal without the hassle. Cut down on energy waste: Simple changes like sealing drafts, upgrading to LED bulbs, and using smart thermostats can lower your usage. Rebates and tax incentives often help offset the costs of these upgrades. Track your usage: Many utilities offer tools to monitor your real-time energy consumption. These insights can help you identify energy-hungry appliances and adjust your habits. Time your usage: If your utility offers time-of-use rates, shift activities like laundry or EV charging to off-peak hours to save. Decoding your power bill is the first step toward saving money and taking control of your energy use in 2025. By understanding what you’re paying for, you can take steps to plan for and even lower monthly costs. This story was produced by Arbor and reviewed and distributed by Stacker.