How to Use the Tiered Electricity Bill Calculator
Unlike a single nationwide system, tiered electricity pricing in the US is set by individual utilities and is most common in a handful of states, including California. A typical structure gives you a baseline allowance billed at a lower tier-1 rate, with any usage above that baseline billed at a higher tier-2 rate. This calculator takes your monthly usage, baseline allowance, and both tier rates to estimate your bill.
Only the usage above your baseline is billed at the higher rate — not your entire bill. For example, with a 400 kWh baseline, $0.30/kWh tier-1 rate, and $0.42/kWh tier-2 rate, using 600 kWh means 400 kWh is billed at $0.30 ($120) and the remaining 200 kWh at $0.42 ($84), for an estimated $204 total.
This is a simplified estimate — real bills often add fixed monthly service charges, delivery fees, and taxes on top of the energy charge, and rates can change by season. Check your utility's actual rate schedule for exact figures.
Frequently Asked Questions
No — tiered rate structures vary by utility and are common mainly in some states like California. Many utilities use flat rates instead. Check your utility's rate schedule for your actual tiers and baseline allowance.
No — only the portion of usage above the baseline allowance is billed at the higher tier rate. Usage within the baseline is still billed at the lower tier-1 rate.