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ENERGY BILLS

What Your Utility Bill Actually Means: A Simple Guide

A line-by-line walkthrough of the charges on a typical New Jersey residential energy statement.

By NJ Energy News Staff

7 min read

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What Your Utility Bill Actually Means: A Simple Guide

Utility bills are dense by design: they satisfy regulatory disclosure requirements first and reader comprehension second. Once you know the structure, the statement becomes a useful monthly diagnostic.

The two halves

Nearly every residential electric bill separates supply — the energy itself — from delivery, the cost of the wires and service that bring it to you. Gas bills follow the same logic with commodity and delivery components.

Line itemWhat it means
Basic service / customer chargeA fixed monthly charge for being connected
Delivery per kWh or thermCost of moving energy to your home
Supply / generationThe energy commodity itself
Societal benefits chargeStatewide efficiency and assistance programs
Sales and use taxState tax applied to energy sales

Read the usage history graph first

Most statements include a 12-month bar chart of usage. That graph, not the dollar total, tells you whether your consumption changed or the price did.

  • Utility Bills
  • Guides

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