The basic SI unit of Energy is the Joule (J).
One Joule per second is one Watt (W), a measure of power. W = J/s
One kilowatt (kW) is a thousand watts.
Power = Energy/time. Energy = Power*time.
A kilowatt-hour (kW-hr) is the energy expended by a power of one kilowatt for one hour.
1kW-hr = (1000J/s)*(3600s) = 3.6*106 J.
You pay for energy used; in this case at a rate of 0.2650 dollars per kW-hr
.