
Reading an electrical bill in NYC can be confusing, especially for tenants in multi-family residential buildings. In such cases, the building may be master-metered, meaning that there is one meter for the entire building, or direct-metered, where each unit has its own meter. Charges are based on electricity usage and delivery, with rates prorated for billing periods longer or shorter than 30 days. Understanding your electrical bill is important to ensure you are being charged fairly and to identify opportunities for saving energy and money.
| Characteristics | Values |
|---|---|
| Account Information | Property location, meter reading summary, amount due |
| Current Usage | Details of usage, charges and taxes during the most recent billing period |
| Past Usage | KWHRS for the previous 12 months |
| Charges | Electricity used (supply) and getting that electricity to the user (delivery) |
| Rates | Based on a 30-day period, prorated if the billing period is more or less than 30 days |
| Measurement | Kilowatt hours (kWh) |
| Meter Multiplier | Factor by which the meter reading difference is multiplied to determine usage |
| Demand | Highest amount of electric usage in any half-hour during the billing period |
| Energy Supply Charge | Charge for electricity supplied by Con Edison |
| Demand Supply Charge | Charge for electricity supplied by Con Edison |
| Customer Charge | Monthly charge for billing, meter reading, equipment, and service line maintenance |
| Distribution Charge | Charges for Universal Service Program costs and use of equipment to deliver electricity to consumers |
| Estimated Reading | Calculated based on past electrical usage when the meter is not read |
| Direct Metering | Charges come directly from the provider |
| Master Metering | One meter for the whole building, used to determine total electrical service usage |
| Ratio Utility Billing System (RUBS) | Formula to divide the electrical bill of a multi-family building between units, usually based on square footage and occupancy |
| Customer Benefit Contribution (CBC) | Non-bypassable charge for solar installations after January 1, 2022, calculated based on the electric solar system size in kilowatts (kW) |
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What You'll Learn
- Account information: Property location, meter reading summary, and amount due
- Current usage: Charges, taxes, and usage during the billing period
- Past usage: KWHRS for the previous 12 months
- Customer charge: Billing, meter reading, equipment, and maintenance costs
- Supply and delivery: Taxes, supply, and delivery of electricity

Account information: Property location, meter reading summary, and amount due
Property Location
The location of your property is usually indicated on your electricity bill. This is important because it helps identify the specific property associated with the electricity charges.
Meter Reading Summary
The meter reading summary section of your electricity bill provides information about your electricity usage. In New York City, most buildings have at least one electrical meter that measures the total power usage in the building. However, in multi-family residential buildings, there are a few different metering setups that can impact how your electricity usage is measured and billed:
- Direct Metering: Each unit has its own electrical meter installed by the utility company. This meter exclusively measures the electricity used in that specific unit. The utility company monitors this meter to calculate your bill, which you pay directly to them.
- Master Metering: In this case, there is only one meter for the entire building, installed by the utility company. The electricity bill for the whole building is determined by this meter, and the landlord then has various options for dividing this bill among tenants.
- Submetering: This is when individual units within a master-metered building have their own submeters installed. Submeters track each unit's electricity usage separately, providing tenants with a transparent view of their energy consumption and financial incentives to reduce usage. Landlords are allowed to charge up to the rate charged by the utility company, plus a reasonable service charge.
- Ratio Utility Billing System (RUBS): This system divides the electrical bill among units based on factors like square footage and occupancy. While this system helps landlords recoup energy costs, it may not encourage individual tenants to conserve energy since savings are spread across all units.
It's important to note that your bill may be based on either estimated charges (when the utility company cannot access the meter) or the actual electricity delivered.
Amount Due
The amount due on your electricity bill will depend on various factors, including your energy usage, service classification, supply prices, weather conditions, and other variables. The charges on your bill can be broadly categorized into three main components: supply, delivery, and taxes.
- Supply: Energy supply costs can vary due to factors such as weather, demand, and market trends. If you purchase energy from an Energy Service Company, your cost savings will be reflected in the unregulated supply portion of your bill.
- Delivery: Delivery rates are set by state regulatory agencies and are not subject to market changes. These rates cover the maintenance and upgrades of electric and gas distribution systems.
- Taxes: Local, state, and federal taxes are applied to both the supply and delivery portions of your energy bill.
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Current usage: Charges, taxes, and usage during the billing period
Current usage is the electricity you consumed during the billing period covered by your invoice. It is calculated based on the difference between the current and previous meter readings. The billing period is usually 30 days, but your bill will be prorated if the period is shorter or longer. Your electricity usage is measured in kilowatt-hours (kWh). One kWh will light a 100-watt bulb for 10 hours.
Your bill will include details of your current usage, charges, and taxes. The charges are for the electricity you used (supply) and for getting that electricity to you (delivery). Local, state, and federal taxes are applied to both the supply and delivery portions of your bill.
If your meter was not read during the billing period, your bill may be based on an estimate of your usage. This can happen if, for example, a dog was in the vicinity of the meter, preventing the meter reader from accessing it. You can avoid estimated bills by submitting your meter reading online or by mail. If you are billed based on an estimate, any difference between the estimated usage and your actual usage will be adjusted when the next meter reading is taken.
If you live in a multi-family residential building, your building may be direct metered, meaning that each unit has its own meter, or master metered, meaning that there is one meter for the whole building. If your building is master metered, your landlord may use a Ratio Utility Billing System (RUBS) to divide the electrical bill between the units, usually based on square footage and occupancy.
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Past usage: KWHRS for the previous 12 months
The 'Past Usage' section of your electricity bill outlines your kilowatt-hour (kWh) consumption over the previous 12 months. This is a critical component of your bill, as it provides valuable insights into your historical electricity usage patterns. Understanding this section helps you make informed decisions about your energy consumption and explore cost-saving opportunities.
Kilowatt-hours, or kWh, is the standard unit of measurement for electricity consumption. It represents the amount of energy consumed by a device or appliance using 1,000 watts of power for one hour. In simpler terms, if you turn on a 100-watt light bulb, it will consume one kWh of electricity in 10 hours. Your electricity bill will detail the total number of kWh used in the last year, typically broken down by month.
This detailed breakdown of your past usage allows you to identify trends and patterns in your electricity consumption. For example, you might notice that your electricity usage spikes during specific months, such as winter or summer, due to increased heating or cooling demands. Alternatively, you may discover that certain months consistently show lower usage, indicating periods of more efficient energy usage.
By analysing your past usage, you can set realistic goals for reducing energy consumption and explore cost-saving opportunities. For instance, you might consider adjusting your daily habits, such as turning off appliances when not in use or opting for more energy-efficient alternatives. Additionally, understanding your past usage empowers you to make informed decisions about energy plans and suppliers. Different suppliers offer varying rates and plans, and by knowing your historical consumption, you can select the most cost-effective option for your needs.
In New York, the average monthly electric bill for residential customers varies depending on the region. In New York City, the average monthly bill is $334, with an average monthly consumption of 1,066 kWh and an average electric rate of 31 cents per kWh. In contrast, for the rest of New York, the average monthly bill is $298, with an average monthly consumption of 1,105 kWh and an average electric rate of 27 cents per kWh. These averages can provide a benchmark for comparing your past usage and identifying areas for improvement.
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Customer charge: Billing, meter reading, equipment, and maintenance costs
The customer charge is a standard rate that covers the costs of meter reading, billing, equipment, and maintenance. This charge remains the same regardless of your energy usage during the billing period. It is important to note that this charge is separate from the costs associated with the actual supply and delivery of electricity.
The customer charge helps cover the expenses involved in maintaining and upgrading the electric distribution system. This includes the infrastructure and equipment necessary to deliver electricity to your home. The charge also contributes to the billing process, including meter reading and the generation of your bill statement.
Meter reading involves collecting data from your electricity meter, which measures your energy consumption. This data is then used to calculate your electricity usage and the corresponding charges. The billing process involves generating and sending your bill statement, which includes breaking down the various charges and providing relevant account information.
Equipment costs refer to the devices and tools required for electricity delivery and metering. This includes not only the physical infrastructure but also any specialized equipment needed to measure time of use. Maintenance costs cover the ongoing upkeep and repairs necessary to ensure the safe and reliable operation of the electric distribution system. This includes routine checks, upgrades, and emergency repairs.
It's important to note that the customer charge is separate from other fees, such as supply charges and delivery rates. Supply charges refer to the cost of the electricity itself, while delivery rates cover the transportation of electricity from the supplier to your home. These rates are set by state regulatory agencies and are not subject to market changes. Understanding these different components of your electric bill can help you better manage your energy usage and explore options for reducing your overall costs.
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Supply and delivery: Taxes, supply, and delivery of electricity
An electricity bill in New York City comprises supply, delivery, and taxes. Supply charges refer to the cost of the electricity itself. These charges are based on market conditions and vary depending on where you live or do business.
Delivery charges, on the other hand, are the costs of delivering electricity to your house. These charges are set by state regulatory agencies and are not subject to market changes. The revenue from these charges is used to maintain and upgrade electric and gas distribution systems and ensure safe and reliable service.
Local, state, and federal taxes are applied to both the supply and delivery portions of your energy bill. In addition, you may also notice a public benefits charge on your bill, which supports state-authorized energy programs.
It is important to note that if you choose an alternate supplier, the price will be what you agree upon with that supplier. Additionally, if you purchase energy from an Energy Service Company, your cost savings will be reflected in the unregulated supply portion of your bill.
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Frequently asked questions
An electrical bill in NYC will include account information such as property location, a meter reading summary, and the amount due. It will also include details of current usage, charges, and taxes, as well as past usage data.
If you live in a multi-family residential building, there are a few different ways your electrical bill might be calculated. Your building might be direct metered, which means each unit has its own electrical meter installed directly by the utility company. Alternatively, your building might be master metered, meaning there is one meter for the whole building. Another option is for your landlord to use a Ratio Utility Billing System (RUBS) to divide up the electrical bill, usually based on square footage and occupancy.
Using less energy will help lower your bill. You can also look into installing rooftop solar, which can lower your bill by reducing certain parts of your bill.













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