How to Read Your Electric Bill and Reduce Monthly Costs

Make Sense of Your Energy Use with Help from Dolton Electric

Most homeowners receive their electric bill each month, glance at the total, and move on. But your utility bill contains valuable information about how your home uses energy — and understanding it can help you lower your monthly costs.

At Dolton Electric, we help Lincoln homeowners and businesses improve energy efficiency through smarter electrical systems, upgrades, and inspections. Today, let’s break down how to read your electric bill and what steps you can take to reduce your energy use long-term.

🔍 Understanding the Main Sections of Your Electric Bill

Although the layout varies by utility company, most Nebraska electrical bills include similar sections. Here’s what each one means:

Service Charges / Customer Charge

This is a fixed monthly fee just for having electrical service connected to your home or business.   You cannot change this amount, but lowering usage in other areas can still significantly reduce your total bill.

Energy Usage (kWh)

This is where your actual electricity consumption appears. Your usage is measured in kilowatt-hours (kWh) — how much power you use multiplied by how long you use it.

Example:  A 1000-watt appliance running for 1 hour = 1 kWh.  Your bill might show:

• Current month’s usage
• Last month’s usage
• Usage from the same month last year

Tracking this can help you spot patterns or sudden increases.

Delivery or Distribution Fees

These charges reflect the cost to maintain power lines, transformers, and infrastructure getting power to your home. They are based partly on your usage.

Supply or Energy Charges

This is what you pay for the actual electricity consumed.  The rate may be:

• Fixed (same price per kWh every month)
• Variable (changes based on demand, season, or usage level)

If your rate increases, your bill increases — even if your usage stays the same.

Taxes & Local Fees

State and local taxes, renewable energy fees, or storm recovery surcharges may appear here. These aren’t adjustable, but lowering usage can still reduce the total.

💡 Why Your Bill Might Be Higher Than Usual

Several common issues cause unexpected spikes in electrical usage:

• Aging HVAC systems
• Inefficient lighting
• Phantom loads from plugged-in devices
• Outdated appliances
• Drafty windows or poor insulation
• Faulty wiring or overloaded circuits
• Seasonal temperature changes
• 

If your usage seems unusually high, Dolton Electric can perform a home electrical efficiency inspection to identify hidden problems.

⚡ How to Reduce Your Monthly Electric Bill — Starting Today

Here are practical, proven ways to lower your energy usage without sacrificing comfort.

Replace Old Bulbs with LEDs

Switching to LED lighting can reduce lighting energy costs by up to 75%.  LEDs also last much longer, reducing maintenance and replacement costs.

Install Smart Thermostats

A smart thermostat can cut heating and cooling costs by 10–20% by automatically adjusting temperatures based on your schedule.

Unplug “Phantom Load” Devices

Electronics like TVs, chargers, printers, and gaming systems use power even when turned off.

Use:

• Power strips
• Smart plugs
• Timers

These help you fully cut power when devices aren’t in use.

Schedule an Electrical Panel or Wiring Inspection

If your system is outdated, it may struggle to deliver power efficiently.   Upgrading your electrical panel can:

• Improve energy distribution
• Prevent overloads
• Stop wasted electricity
• Allow you to add energy-efficient appliances

Dolton Electric can assess your panel and recommend upgrades if needed.

Upgrade Major Appliances

Old appliances use far more power than modern, energy-efficient models.  Look for ENERGY STAR® ratings when replacing appliances such as:

• Refrigerators
• Water heaters
• Air conditioners
• Dryers

Seal Air Leaks and Improve Insulation

When your HVAC system runs constantly to compensate for poor insulation, your energy bill suffers.
Simple sealing and insulation upgrades can significantly reduce heating and cooling costs.

Consider a Whole-Home Energy Audit

A full energy audit can identify exactly where your home is losing energy — and what upgrades will offer the biggest savings.

🔌 Optimize Your Energy Use with Dolton Electric

Understanding your electric bill is the first step toward reducing it. With the right electrical upgrades — from LED lighting to panel improvements — you can lower your monthly costs, improve safety, and increase comfort.

Dolton Electric proudly serves Lincoln, NE, and surrounding communities with dependable residential and commercial electrical services.

Ready to Reduce Your Monthly Energy Costs?

Whether you want an electrical inspection, panel upgrade, or efficiency-focused improvements, our licensed electricians

are here to help.

📞 Contact Dolton Electric today to schedule an appointment or request a free estimate.
Let’s make your home more energy-efficient — and your monthly bills more manageable.