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Learning to read your electricity bill can help you understand your energy usage and how your monthly statement is calculated.
Your Texas electricity bill has three key elements: your electricity rate, the Utility Distribution Company (UDC) or Transmission and Distribution Utility (TDU) charge, and taxes. Your chosen plan type will influence how stable your electricity rate is each month.
Let’s dive into what your monthly electric bill in Texas will look like. Depending on your energy provider, your bill may look slightly different from this sample bill, but the core information should be similar.
kWh (Kilowatt-hour): This is the standard measurement used for electricity consumption. It is equal to 1,000 watt-hours.
Retail energy provider (REP): REPs sell electricity to consumers through energy plans. REPs or providers also manage your account and handle billing. Your monthly electric bill will come from your provider.
UDC, TDU, or TDSP delivery charge: This charge covers the cost of moving electricity from the energy plant to your home.
Public Utility Commission of Texas (PUCT): Texas’ regulatory agency focused on several utiities, including electricity and water.
PUC assessment: The PUCT charges utility companies a fee to service each customer’s address. This fee is passed through to customers.
1. Account Information
This section contains your personal information, including your name, account number, and service address. You will need this information to contact your provider’s customer care line or sign up for a new plan.
2. Current Bill Statement
Your current bill statement lists the charges for the most recent billing period and the due date for your payment. This section also notes the charges for your last bill statement. Review this section to monitor how your energy usage changes month-to-month.
3. Bill Overview
This part of the document is a brief summary of your bill and how it was calculated. It includes a breakdown of taxes and utility charges.
4. Consumption History
This section provides a look at how your energy usage fluctuated over a period of time – usually between six months and a year. This can help consumers pinpoint months when they typically consume more energy or predict when their bills may be higher due to seasonality.
5. Monthly Usage
In the monthly usage section, you can discover exactly how much energy per kWh you consumed for the current month. Depending on your REP, this section may also include information such as your usage from last month or from the same month last year.
6. Payment Slip
If you plan to pay by mail, you will use this payment slip. Many REPs offer online payment or autopay options, which are normally noted in this section.
Your electric bill will include several charges. Here is an explanation of each charge.
1. Electric supply charge
The supply charge makes up most of your bill. This charge notes the price of electricity consumed in kWh, which is calculated using your energy plan’s rate. If you have a variable-rate plan, you may experience fluctuations in your electricity rate each month due to seasonal demands.
2. Market charges
These charges depend on changes in the electricity market. They help to keep the grid reliable and balance supply and demand.
3. UDC Charge
This stands for “Utility Distribution Company,” which is the company that delivers electricity to your home. Every household in the utility company’s service area will be charged the same amount, regardless of their REP. Sometimes, these are listed as TDU or TDSP charges.
4. Taxes
This is where you will find state and city taxes. You may also find taxes from MGRT or PUCA. MGRT is the “Miscellaneous Gross Receipts Tax,” which is from your utility company. PUCA, or the “Public Utility Commission Assessment,” is a charge from the PUCT. Every household in your utility’s service area will pay the same amount for MGRT and PUCA.
Your REP may offer different methods to pay your bill. Contact your provider directly to find the best option for you. Common methods include mail, credit card, debit card, cashier’s check, personal check, or in-person.
Your electricity bill is determined by your energy consumption, calculated in kWh, and the electricity rate established in your contract. Check your usage levels from previous months to determine if it has increased. If it has, you can find ways to cut down on consumption. Seasonal energy demand can also increase your bill if you’re enrolled in a variable-rate plan. Contact your electricity supplier if you do not understand the charges on your bill.
Your electricity bill is calculated by adding your electricity rate, taxes, and the UDC or TDU delivery charge.
Once you understand how to read your electric bill, you’ll notice how your energy usage fluctuates. This knowledge can help you identify strategies to reduce your energy consumption and save money. Some common low-cost strategies include using LED light bulbs, lowering your water temperature, and using your curtains to offset your HVAC unit. Higher-cost investments include installing a smart thermostat to automate your home’s temperature or investing in renewable solutions.
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