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When was the last time you understood every charge on your electricity bill? For many Texans with deregulated energy, deciphering the ins and outs of energy terms can be hard. Choose Texas Power is here to help clear any confusion. Using a sample energy bill, we broke down each section so you can confidently understand your charges and tackle your energy consumption.
The example we reference may differ slightly between energy providers, but the core information should remain the same.
kWh (Kilowatt-hour): This is the standard measurement used for electricity consumption. It is equal to 1,000 watt-hours. Every device and appliance in your home that uses electricity contributes to the total kWh you consume.
Retail energy provider (REP): REPs sell energy plans to consumers, manage your electric account, and send your monthly energy bill. In deregulated cities, you can select your energy provider.
TDU, UDC, or TDSP delivery charge: This fee is the cost to have your utility company (separate from your provider) transport electricity from the power plant to your home or business.
Public Utility Commission of Texas (PUCT): This is Texas’ regulatory agency focused on several utilities, including electricity and water. The PUCT regulates the cost of energy to ensure fair pricing.
PUC assessment: The PUCT charges utility companies a fee to service each customer’s address. This fee is passed through to customers.
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. Not all plans have bill credits; you should read your plan’s Electricity Facts Label (EFL) to learn if your plan has one.
Your electricity bill boils down to three main elements: your energy charge, utility delivery fees, and taxes. The sum of those three parts equals your monthly energy bill. While that seems easy enough to understand, how it appears on your bill may be less straightforward. To help you understand the charges on your bill, we have an example from one of our partners, Gexa Energy, to explain each 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 lays out your current charges, including taxes and TDU charges. Any leftover balance from your previous billing cycle can also be found here. This example includes the late payment penalty if you are behind on your payments.
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. It also shows your previous meter reading, which could provide insights into your home’s energy patterns. Review this section if you are wondering whether your usage went up or down.
D. Electricity charges and taxes
This section calculates your bill by taking the amount of energy you used and multiplying it by your energy 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 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 received your energy bill and are surprised by how much you owe, you’re not alone. Deregulated energy plans contain a lot of components, and it’s easy to misinterpret the EFL and end up with a confusing bill.
To help prevent any misunderstanding, 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 it really pays off when shopping for electricity plans. Reading your EFL helps you understand the terms of your plan and reduces confusion once you receive your bill.
A common mistake shoppers make when reading EFLs is misunderstanding bill credit terms. Take this Gexa Eco Saver Plus 12 plan as an example — this plan includes a $125 bill credit when you use at least 1,000 kWh of electricity each month. The average price listed for this plan is 11.1 cents for the 1,000 kWh usage tier. However, if you use less than 1,000 kWh, your average price per kWh is actually 24 cents.
In this scenario, the price difference between the 500 and 1,000 usage tiers is due to the bill credit. Consumers who used at least 1,000 kWh pay less on average because they qualify for the bill credit. Households with low energy usage would benefit less from this plan and may end up paying more than they expected if they didn’t read the usage requirements.
Bill credit plans exemplify the value of reading the EFL before signing up. These plans can be very advantageous when they match your usage patterns, but also more expensive if your usage doesn’t line up with the bill credit requirements.
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 monthly energy costs are 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.
Pick a plan 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, which could be a great opportunity to save if you use most of your energy at night. However, for those who work from home or use energy throughout the day, this may not be a great fit. If a time-of-use plan complements your usual schedule, it could be a good option for you. But if you have to adjust your daily habits to save, it’s probably not the best option for you.
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 are great at simplifying the energy shopping experience and addressing customers’ needs. You don’t have to navigate your electricity options alone — tap into our expertise and start saving with the right energy plan.
Every provider has different options to pay your bill, but they should offer one or more of the following: payment online, by mail, over the phone, or in person. Many providers also offer an autopay option to automate this task and avoid late fees. Check which method your provider offers and use the one that’s best for you.
The majority of your electric bill comes from your energy usage. If you notice a sudden uptick in your bill, it is likely because your usage went up. This typically happens when you use your HVAC system more frequently in summer and winter. Check your usage levels from previous months to determine if they have increased. If they have, you can find ways to cut down on consumption.
The first step is to ensure you’re signed up for the right energy plan. Some additional low-cost strategies to reduce your energy consumption include switching to LED light bulbs, lowering your water temperature, and using fans or curtains to offset your HVAC unit. Higher-cost investments include installing a smart thermostat to automate your home’s temperature, purchasing energy-efficient appliances, or investing in renewable solutions.
Let us put the power in your hands with a new electricity plan.
