Remember all those distance/rate/time problems you learned about in grade school? They were a preview of calculus, specifically of integrals and derivatives.
We have distance = velocity x time. Likewise, we have energy = watts x time. More generally, for distance and energy, instead of saying ‘times’, we’d say is the integral of (rate) over (time).
That is, power is a rate (specifically, watts = joules/s) just like km/h is a rate.
Likewise, kWh is an integral of rate, just like km is an integral of km/h for distance travelled. Their math works the same.
Your speedometer gives you instantaneous rate, while the odometer continuously tallies distance travelled, regardless of fluctuations in rate.
Likewise, a utility meter measures watts and tallies the watt-hour (again, technically joules*60) consumption, doing so continuously regardless of moment-to-moment rate variations. Like the odometer, the meter’s tallying action integrates power (that is, rate) over time.
The speedometer and the utility meter are doing a bit of calculus. Moment-to-moment rate variations don’t matter: the meter sees them and they just get added to the tally. For any given time interval then, we have single number that represents the average rate. The Mean Value Theorem tells us so.
Meter tallying vs. load is easier to visualize with a mechanical spinning-disk meter, which tallies power use by counting the disk revolutions. You can tell when a high-power device is on: the disk spins faster, adding more revs to the tally.
There’s another household spinny-wheel device that measures consumption: your water meter, which also tallies use with a spinning wheel that measures water flow rate.
Gas meter? Same thing, a spinny thing measures gas volume and tallies it.
So I’ve said that the instantaneous power rate doesn’t affect the meter tally. That’s a bit more nuanced now that the newer ‘smart’ meters have arrived.
Smart meters can separate energy usage by day-part. This allows billing at different rates depending on the time of day, a scheme intended to encourage shifting high-power loads (like dryers, ovens, pool pumps and especially A/C units) to off-peak hours. You as a consumer have some control over this and it could save you money.
Cynically, time-of-use billing is a way to extract more revenue from ratepayers, subject to the whims of your utility and forces you cannot control (like weather and politics.)
what time interval does the power company calculate my usage
- every moment. Now, for the old-school analog meters that is basically infinitesimal (or at least in theory Planck time (the smallest unit of time describable (not measurable) by physics)). For modern digital meters it is usually several milliseconds to several hundreds of milliseconds (I've seen meters that measure 10 times per second and ones that measure 100 times per second). Leaving this as a comment because the answers below are already good \$\endgroup\$