How Does the Utility Company Know How Much Power a Home Uses?

Every home comes with an electric meter. When the electric company turns power on for a house, the address is added to a schedule. Either a worker will come by the home monthly and scan the meter located somewhere outside, or the power company can sometimes read meters remotely.  

Dials

An electric meter has five dials that spin in clockwise and counter-clockwise motions. It monitors energy usage on a daily basis and is known as a mechanical electric meter. Newer homes may feature digital displays instead of dials. Homeowners can monitor energy usage by keeping a log of readings. Note the date of the reading and the number on each dial. If the dial is halfway between two numbers, use the lower number. Subtract a previous reading from a current to find how much energy was used in a particular time period.

Reading and rates

The utility company determines rate in much of the same way. Every month, an electric company employee comes by the home to read the electric meter. By law, these employees are allowed on the property to scan. The new reading is fed into a computer and the home’s exact usage is determined. Electric companies usually charge a set amount per kilowatt of energy a home consumes, plus surcharge or any additional fees for the month. Some states add taxes for electric usage and are listed separately on the bill. Usually the electric company bill will show energy usage for the last year for homeowners to track energy usage on a monthly or yearly basis.