How to Read Your Texas Electric Bill
Every Texas electric bill has the same line items. Once you know what each one means, you can spot when something looks wrong.
The five charges on every bill
1. Energy charge
This is what you pay for the electricity itself. It is usually the biggest line item.
The math: your kWh used that month, multiplied by your contract’s per-kWh rate. If your plan is 10 cents per kWh and you used 1,000 kWh, your energy charge is $100.
2. Base charge
A fixed monthly fee from your provider. Some plans have one, some do not. Plans with a base charge tend to have a lower per-kWh rate. Plans without a base charge tend to have a higher per-kWh rate. The math varies based on your usage.
A common base charge is $9.95 per month.
3. TDU delivery charge
The fee from your local utility (Oncor, CenterPoint, AEP, or TNMP) for delivering electricity through their wires and poles. This is the same for every plan in your ZIP code. You cannot shop around for it.
The TDU charge has two parts. A fixed monthly fee, usually around $4 per month. And a per-kWh delivery fee, usually around 4 to 6 cents per kWh.
4. Taxes and fees
State and local taxes plus a few small regulatory charges. Usually 5 to 8 percent of the rest of the bill.
5. Bill credits (if your plan has them)
Some plans give you a credit at specific usage levels. The most common pattern is a $100 credit if you use between 1,000 and 2,000 kWh in a month. If your usage falls outside that range, the credit may not apply.
We flag bill credits in our ranking and apply them to your specific usage.
How to read your actual bill
Find your most recent bill. You should see four labeled sections.
Account summary. Total amount due and due date.
Service period. The dates this bill covers, usually 28 to 32 days.
Usage. Your kWh used and the meter reading.
Charges. The five charges above, line by line.
Add the five charges up. The total should match the amount due.
When your bill spikes
The most common reasons a Texas bill jumps unexpectedly.
Summer. AC running constantly can double your kWh in July and August.
Weather extremes. A cold snap or heat wave drives usage up.
Bill credit miss. You used 999 kWh on a plan with a 1,000 kWh credit cliff. Lost $100.
Variable rate kicked in. Your fixed-rate contract ended and you rolled into a month-to-month variable plan that costs more.
Meter read error. Rare, but possible. Compare your meter to the reading on the bill.
If your bill jumps and you cannot explain it, call your provider first. If they cannot resolve it, you can file a complaint with the PUCT.