Electricity bills can often be difficult to decipher. Depending in the electricity provider, bills can be very long and detailed or extremely short, with only a few totals listed. Different charges can appear each month with no apparent explanation of how or why they are calculated. Learning how to read electricity bills and understand why different charges are assessed is key to maximizing cost savings through energy efficiency. This document provides guidance on the basics of understanding electricity bills and covers electricity generation, rate structures, usage trends, and savings opportunities. The information in this guide can be used to help companies collect and report their energy efficiency improvements to the DOE Better Plants Program.