Keeping up with **electricity payments is important** to avoid generating electronic outages at home. The electricity bill processing cycle can be confusing, so it is always a good idea to know how much electricity you spend each month.

If you track your electricity usage, the final amount of the electric bill should not come as a surprise. As a customer spends energy, it is calculated how much they will have to pay to the state. This is made possible by the processing cycle in the electricity bill.

## What does “processing cycle for electricity bill” mean?

This is a term used to refer to a group of bills that are being processed. To avoid doubt, the processing cycle refers to the time it takes to complete the bill to pay the monthly payment. This cycle is renewed monthly.

This process refers to collecting data that the state electricity board needs to generate in a period between 30 and 45 days when the use of electricity per household is reflected. This process is done monthly because that is how long it takes to process the data and generate the bill.

## What is the processing cycle in the electricity bill payment

The electricity bill processing cycle comprises several processes, from data collection to the delivery of the electricity bill to the household. The steps are input, preparation, sorting, and output.

### Input

Here the data is obtained and **entered into the system at the state electricity board**. At the beginning of each cycle, the data for the past month is entered, and the system works on that basis.

### Preparation

The next stage is preparing data to be evaluated on the number of kilowatts used and how much the monthly activity represents. This is where using the formulas; we can calculate the number of watts consumed and how that translates into dollars spent.

### Storage

Then begins the individual storage of the information compared to the **other data collected.** Upon storage, it is sorted and merged into the month’s history. Each bill can be reviewed monthly, and you can see your history to see how much is being consumed.

Storage is important to make an overall average per state of electricity consumption. This way, the state can check how much electricity is being consumed at the state and national levels and act on it if necessary.

### Output

After approval of the storage, the reporting stage is completed. The monthly invoice is generated along with a routine report of electricity usage. Sometimes there may be an extra step to remove erroneous information or add an overlooked record.

## How is electric billing calculated?

You may be wondering how bills are generated **based on monthly electricity usage.** Well, it is calculated based on watts usage. There is a formula that will help you calculate the bill manually.

The formula is **power x time = energy consumption.**

Power is usually represented in Watts, equal to amps x volts. That is divided by 1000. Cost, which is kilowatts used per hour, is multiplied by the electric rate set by the state.

This is transformed into a formula that would look like this:

On the internet, you can get myriad consumption tables according to the appliances, as some specific ones consume the most energy and are the most used in the United States.

It may sound a bit complicated to calculate, but don’t worry. Nowadays, there are energy calculators that can make your life much easier. What you do need to keep in mind is what your electricity rate is because it can vary **depending on the state you are in.**

## How to calculate how many kilowatts you use per day

How to calculate how many kilowatts you use? **One kilowatt is equivalent to 1,000 Watts.**

To calculate the kWh, a refrigerator can consume per day, you must do a small equation. You divide the watts per hour for the refrigerator to run daily, normally 7,200, by the total hours it uses.

A refrigerator is estimated to be in constant operation (opens and closes) for about 7-8 hours daily.

The average kilowatt **usage per day is 36 kilowatts.** If you are generating an amount much different than this, we advise you to check where this energy leakage is occurring, as it can affect your monthly bill without you even realizing it.

### Energy Calculator

An energy calculator will help you know how much electricity you consume daily. Based on that calculation, you can multiply it by the number of days in the month and get your monthly consumption.

The calculator works per electrical device, so you should calculate all the equipment in your home to make a complete summary. This is almost impossible, but it can give you an approximation based on the electronic devices that consume the most electricity.

This way, you’ll be prepared to receive an estimate of what your bill will look like this month. The energy calculator will ask you for the following data to calculate the consumption:

- The name of the equipment and the amount you want to calculate;
**if it is only one, input 1** - Each piece of equipment has power reflected in watts; you should look on the packaging for its capacity to enter it into the calculator
- Then enter the number of hours the equipment is in operation per day
- After that, you will be asked for the number of days the equipment is used per month to calculate how many hours per month it is used

According to this data, the calculator will generate** the monthly watts you use with this device.** Then you will need to look up your state’s electricity rate and calculate how much this consumption represents in dollars.

For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.

Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.