A customer in Ohio opens her July bill and sees $212. Last July it was $168. She assumes the AC ran harder this year, adjusts the thermostat, and moves on.
What she doesn't check is the per-kWh supply rate printed three lines below the total. It jumped from $0.09 to $0.14 when her fixed-rate contract expired in May.
Her air conditioner isn't the problem. Her rate is.
Arbor, an automated energy-switching platform founded in 2022 and operating across deregulated electricity states, performs this analysis automatically for over 100,000 households. Any customer can run the same diagnostic in about 10 minutes with two recent bills and one from the same month last year.
Pull up your most recent electricity bill. Look for the line item labeled "generation charge," "supply charge," "energy charge," or "basic service." Supply rate is the per-kWh price you pay for the electricity itself, separate from delivery, taxes, and fees.
Write down that number. If it's above $0.10/kWh in most Midwestern and Mid-Atlantic states, or above $0.15/kWh in New England, competitive alternatives likely exist.
EIA data shows the national average residential rate reached approximately 17.45 cents per kWh as of early 2026. State averages vary sharply:
Massachusetts: roughly 31.5 cents per kWh
Pennsylvania: about 17.8 cents per kWh
Illinois: around 18.1 cents per kWh
Ohio: near 15.5 cents per kWh
A supply rate above your state average is the first sign you may be overpaying which is a large portion of your total effective rate
Pull up a bill from three or six months earlier. Find the same supply rate line item and compare the two numbers.
If the rate increased, one of two things happened. Your fixed-rate contract expired with an alternative electricity supplier that you signed up for and the account rolled onto month-to-month variable pricing, which can run 50 to 100% above the original fixed rate. Or your utility adjusted its default "price to compare" based on new wholesale procurement costs.
Pennsylvania utilities updated their default rates in December 2025, with increases of 6.1% to 8.9% across FirstEnergy's four service territories. Neither type of change requires customer approval. Both increase cost without any change in usage.
Pull up a bill from the same month one year ago. Compare total kWh consumed.
If usage is within 10 to 15% of last year's figure, consumption is likely not the primary issue. A spike of 15% or more without an obvious explanation warrants investigation.
Common culprits for unexpected usage increases include:
Aging HVAC systems that cycle continuously without reaching set temperature
Poor insulation forcing cooling equipment to work harder
Phantom loads from always-on electronics adding 5 to 10% of total consumption
New high-draw devices like EV chargers or pool pumps
U.S. Department of Energy appliance-level consumption estimates can help identify which devices draw the most. HVAC and water heating account for the largest share, while TVs and computers are among the cheapest to run.
Multiply your per-kWh supply rate by your total monthly kWh consumption. Supply cost is the portion of your bill you pay for the electricity itself, separate from delivery charges you can't change.
At a default rate of $0.12/kWh compared to a competitive rate of $0.08/kWh:
600 kWh per month (apartment): $72/month vs. $48/month, saving $288 per year
900 kWh per month (average home): $108/month vs. $72/month, saving $432 per year
1,200 kWh per month (larger home): $144/month vs. $96/month, saving $576 per year
A 4-cent-per-kWh gap between a default rate and a competitive fixed rate is common in states like Pennsylvania, Ohio, and Illinois. Savings compound over a full year: $432 for an average home, $576 for a larger one. Arbor's documented results show customer savings of up to $593 per year from rate switching alone, with no change in electricity usage.
Your 10-minute audit now tells you where the problem sits.
If usage looks normal but the rate exceeds competitive levels for your state, a supplier switch can reduce costs starting on the next billing cycle. Many states allow residential customers to choose their electricity supplier, according to American Public Power Association data. Over 20 million households have already switched.
If the rate looks competitive but usage is high, appliance consumption data from the Department of Energy helps target the right devices. Thermostat management, smart power strips, and phantom load elimination can reduce the non-HVAC portion of a bill by 10 to 15%.
If both rate and usage are elevated, address rate first. It changes the price of every kWh consumed, including the ones that can't be reduced through behavior changes.
Behavior changes require daily attention. Equipment upgrades require upfront investment. A rate switch takes minutes to initiate and produces savings within one to two billing cycles.
A household using 900 kWh per month that moves from $0.12/kWh to $0.08/kWh saves $36 per month, or $432 per year. No thermostat adjustment or LED bulb produces savings at that scale.
Arbor holds state-issued broker licenses in each market it serves and can run this comparison automatically using actual usage data across its 13-state service area. Renters who pay their own electricity bill have the same right to choose a competitive supplier as homeowners, with no landlord approval required.
Why is my electric bill so high even though I haven't changed anything?
Your supply rate likely increased. Contract expirations, utility default rate adjustments, and variable-rate fluctuations all increase the per-kWh cost without requiring approval.
How much can I realistically save on electricity?
Rate switching alone can save an average household $300 to $600 per year in a deregulated market. Combined with thermostat adjustments, smart power strips, and phantom load elimination, total savings can reach $500 to $700 annually.
What's the fastest way to lower my electric bill?
Switch your supply rate. It reprices every kWh consumed, resulting in savings within 1 to 2 billing cycles. Arbor's Autopilot continues monitoring to keep the rate competitive.
Is there help paying high electricity bills?
LIHEAP provides federal energy assistance for low-income households. Most utilities offer hardship programs, payment plans, and bill discount programs. Contact your utility or your state's public utility commission for details.