This is Why Your Electric Bill is So High

Dear New Frugal You,

I always do my best to keep the electric bill down in our home. I'm constantly turning off lights and appliances and reminding my family to do the same, yet our electric bill never seems to decrease. Am I missing something? Where does electricity waste happen normally in homes? Is there something more I can be doing? I've noticed a lot of cable companies are now providing services to manage energy usage in homes. Is this something worth looking into?

- Jaxon

Dear Jaxon,

Good question. For most of us the electric bill is one of the larger bills that we pay each month. So it's only natural that we'd want to reduce it if possible.

So let's look at your question three ways. First, how does your bill compare to the average. Second, what makes the average electric bill so high. And, finally, what can you do to reduce your bill.

We'll begin by learning a little about the typical electric bill. According to the U.S. Energy Information Administration (EIA) the average New Mexico home uses 656 kWh per month and spends $74.62. That's lower than the U.S. average energy consumption of 903 kWh and $107.28.

You don't say how high your bill is, but if it's concerning you, I'd have to assume it's above average. Of course, the difference could also be explained by an above average sized home.

FYI, the EIA published a short-term energy forecast that electric will increase modestly to about 12.3 cents per Kwh in 2014. So expect that your bill will increase a little in coming months.

Next, let's take a look at what devices consume the electricity we pay for. The EIA released a paper in 2013 that answers that question.

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This is Why Your Electric Bill is So High