Understand Every Charge on Your Texas Electricity Bill

Bundled Pricing

Bundled plans combine all electricity charges into one simple price per kilowatt-hour (kWh). It’s straightforward, but you might not understand what each cost covers.

Unbundled Pricing

Unbundled bills list charges separately, providing transparency about what you pay each month. This detailed breakdown can help you manage usage better and spot any unexpected fees.

Here are the most frequent charges you’ll see:

• Base Charge: A fixed monthly fee your provider charges, regardless of usage.
• Energy Charge: This charge reflects the amount of electricity (kWh) you consume.
• TDU Delivery Charges: Fees from your local Transmission and Distribution Utility (e.g., Oncor, CenterPoint) for delivering power to your home.
• Advanced Metering Charge: This covers the cost of Texas’s required smart meters.
• Regulatory Charges: Fees mandated by the Public Utility Commission of Texas (PUCT).
• Taxes: Local and state sales taxes, typically around 3%.

Depending on your specific provider and plan, you might also encounter:

• Customer Charge/Monthly Service Fee: Similar to the base charge, this fixed monthly fee covers administrative costs.
• Metering Charge: This covers maintaining and reading your electric meter.
• Renewable Energy Charge: This is Applicable if your plan supports renewable energy.

Occasionally, you may see less frequent or one-time charges:

• Disconnection/Reconnection Fee: Charged if service is shut off due to non-payment.
• Late Payment Penalty: A one-time fee for overdue bills.
• Equipment Fees: Fees for special equipment provided by your utility.

Here’s a detailed look at the charges you might encounter:

• Demand Charge: This is applied to commercial customers based on peak energy demand.
• Transition Charge: This covers the state’s transition to deregulation costs.
• System Benefit Fund: Supports energy efficiency and customer education programs.
• Minimum Usage Fee: A fee is applied when usage drops below a certain threshold.
• Energy Efficiency Cost Recovery Factor: Funds TDU-run energy efficiency initiatives.
• PUC Assessment: Covers regulatory activities managed by the Public Utility Commission.
• Early Termination Fee: If you cancel a fixed-term contract early, you will be charged this fee.
• Billing and Payment Fees: Convenience fees for specific payment methods or paper billing.
• Franchise Fees: Fees utilities pay cities for infrastructure use.
• Deposits: Required based on credit checks; usually refundable.

• Smart Thermostat Incentives/Credits: Discounts or credits for using smart energy devices.
• Community Solar Participation Fees/Credits: Fees or credits for participating in community solar programs.
• Outage Credits: Provided after prolonged service interruptions.
• Voltage Monitoring Fees: These fees are primarily applicable to high-usage commercial customers.

Understanding your electric bill charges helps you make smarter decisions. Here’s how you can lower your bill:

• Monitor Your Usage: Track your real-time consumption with Smart Meter Texas.
• Check for Hidden Fees: Review your Electricity Facts Label (EFL) to avoid unexpected charges.
• Compare Rates Regularly: Use ComparePower’s Live Link™ to find personalized plans tailored to your exact energy usage, ensuring you always pay the lowest possible rate.

Ready to Save?

Discover how much you can lower your bill today with ComparePower’s easy-to-use tools. Enter your zip code and instantly see real rates explicitly designed for your home’s usage patterns.