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Many Texas energy customers easily get lost in the details of their monthly electric bill. Between TDU charges, termination fees, usage tiers, and bill credits, you can quickly lose sight of what you owe and why.
Fortunately, Choose Texas Power is here to help clear up the confusion with your Texas electric bill. Using a sample monthly bill, we’ll break down each section so you can confidently understand your charges and tackle your energy consumption.
Although your electric bill may vary slightly by provider, the core details should still apply.
kWh (Kilowatt-hour): This is the standard unit of measurement for electricity consumption. One kWh is equal to using 1,000 watts of energy for an hour. Every device and appliance in your home that uses electricity contributes to your total kWh consumption.
Retail energy provider (REP): REPs, also known as electricity providers or electricity companies, sell energy plans to consumers, manage your electric account, and handle your monthly billing. In deregulated cities, you can select your energy provider.
TDU, UDC, or TDSP delivery charge: This is the fee from your utility company (separate from your provider) for the cost of transporting electricity from the power plant to your home or business. It varies by utility company and location.
Public Utility Commission of Texas (PUCT): This state agency regulates all utilities in Texas. Most notably, the PUCT regulates energy costs to ensure fair pricing for Texas energy consumers.
PUC assessment: The PUCT charges utility companies a fee to service each customer’s address. This fee is passed on to customers in their monthly light bill.
Gross Receipts Tax Reimbursement: REPs are charged a Miscellaneous Gross Receipts Tax for operating in an incorporated city. Providers may pass this fee through to consumers via the Gross Receipts Tax Reimbursement.
Bill or usage credit: A bill credit is a discount on your total bill when you use a certain amount of electricity during that billing cycle. For instance, you might earn a $50 credit for using at least 1,000 kWh. Not all plans have bill credits; you should read your plan’s Electricity Facts Label (EFL) to learn if your plan has one.
Your Texas electricity bill boils down to three main elements: your energy charge, utility delivery fees, and taxes. Together, these charges add up to your total monthly energy bill. While that seems easy enough to understand, the breakdown of the average light bill may be less straightforward. To help you understand the charges on your bill, we’ll use an example from one of our partners, Gexa Energy, section by section.
A. Account information
This section offers a quick overview of your account number, the amount due for the current billing cycle, and the payment due date.
B. Account summary
The account summary provides more information on your current balance. This section of your Texas electric bill lays out your current charges, including taxes and TDU charges. Any leftover (unpaid) balances from your previous billing cycle will also be found here. This example also shows the penalty you’d incur for a late payment.
C. Meter reading information
Your home has an electric meter that records how much electricity you consume and sends that data back to the provider. The meter reading section displays your total kWh usage for the current billing period. Comparing this section across billing cycles can give you an idea of your average usage and how it changes by season.
D. Electricity charges and taxes
This section calculates your bill by multiplying your energy usage by your rate. It also includes the gross receipts tax reimbursement and any other taxes or fees.
E. TDU charges and taxes
Delivery charges from your utility company will be listed here, along with the PUC assessment fee.
F. Average price paid
This final section on your Texas utility bill gives you an average price per kWh, including all fees and taxes. This estimate will vary each month depending on your energy usage. Not all providers include this estimate, but Gexa Energy does.
If you‘re surprised by how much you owe on your monthly electric bill, you’re not alone. The average electric bill in Texas contains many components, and it’s easy to misinterpret the EFL and end up with a confusing bill.
To help prevent misunderstandings, we asked our experts for advice on avoiding unwanted surprises on your bill. Keep these tips in mind when picking your next energy plan.
No one loves reading the fine print, but understanding your EFL can help you avoid confusion when you receive your bill. It’s important to know your plan’s pricing structures and usage requirements, because customers often misunderstand bill credit terms.
For example, this Gexa Eco Saver Plus 12 plan includes a $125 bill credit for using at least 1,000 kWh of electricity each month, resulting in an average price of 8.6 cents per kWh. However, if you use less than 1,000 kWh, your average price is actually 21.5 cents per kWh.
On top of your energy charge, you have to pay taxes and delivery fees. Many consumers forget to budget for these additional charges and are frustrated when their light bill is higher than expected. Our energy experts recommend creating an energy budget after you’ve received a couple of bills and you have a better idea of your total energy costs. This way, you can build an accurate budget for your monthly energy bills.
When shopping for an energy plan, it’s best to choose one that already matches your energy habits, rather than changing your habits to match a plan. This advice especially applies to time-of-use plans that offer free usage periods. Most time-of-use plans offer free energy at night (and higher rates during the day), which could be a great opportunity to save if you use most of your energy during those hours. However, this may not be a great fit for those who work from home or use most of their energy throughout the day.
If you are struggling to determine which plan is best for you or have questions about an EFL, call our team at the number on your screen. Our experts can simplify the energy shopping experience and help you navigate the deregulated energy market with ease.
Every provider offers different payment options, but most usually allow you to pay online, by mail, over the phone, or in person. Many also offer an autopay option so you can avoid late fees. Your bill should explain various payment methods.
The majority of your electric bill costs are related to your energy usage. If you notice a sudden uptick in your bill, it is likely because your usage increased. If consumption isn’t the issue, you may be surprised by utility charges, taxes, or some other element of your bill.
You can reduce your energy usage with simple steps like switching to LED bulbs, lowering your water heater temperature, and using fans or curtains to ease the load on your HVAC system. Larger investments also help, such as installing a smart thermostat, upgrading to energy-efficient appliances, or adding renewable energy solutions.
The typical Texas household currently pays $133.60 per month for electricity, according to our latest marketplace data. However, your exact cost will vary depending on your rate, local utility charges, household size, usage level, and more.
Delivery charges cover the cost of maintaining power lines, poles, and other infrastructure that transport electricity to your home. These fees are set by your local utility, not your retail energy provider. They are the same no matter which electricity company you choose.
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