Your Texas electricity bill can look complicated with all those line items, but understanding it is the key to spotting savings opportunities. Let's break down every charge so you know exactly where your money is going.
The Three Main Sections
1. Your Usage (kWh)
This is the foundation of your bill. It shows how many kilowatt-hours (kWh) you used during the billing period.
- Example: 1,250 kWh used this month
- Your rate: 12¢ per kWh
- Energy charge: 1,250 × 0.12 = $150
2. Base/Customer Charge
This is a fixed monthly fee just for being a customer. It covers billing, metering, and customer service—regardless of how much electricity you use.
- Typical range: $10–$20/month
- You pay this even if you use zero kWh
3. Delivery Charges (TDU Fees)
Your TDU (the company that owns the poles and wires) charges a separate delivery fee. This is NOT part of your retail provider's rate—it's a regulated utility charge.
- Typical breakdown:
- TDU base charge: $12–$18
- TDU per-kWh charge: 2–5¢ per kWh
- TDU taxes & surcharges: varies
Important: TDU Charges Are Fixed
You cannot reduce your TDU charges by switching providers. They're set by your local utility and apply no matter who you buy electricity from. Focus on reducing your retail provider's rate instead.
Line-by-Line Breakdown
Here's what a typical Texas bill looks like:
- Energy Charge: (kWh used × your rate) = $150
- Customer Service Charge: (base fee) = $12
- TDU Base Charge: (regulated) = $15
- TDU Energy Charge: (1,250 kWh × 0.035¢) = $44
- Taxes & Surcharges: ~$18
- TOTAL: ~$239
What You Can Control
You can control:
- ✅ Your retail provider's rate (switch to a lower-cost plan)
- ✅ Your usage (conservation, efficiency upgrades)
- ✅ Your plan type (fixed vs. variable)
You cannot control:
- ❌ TDU charges (set by your utility, same for all providers)
- ❌ Taxes & regulatory surcharges
Tips to Lower Your Bill
- Switch to a lower-rate plan: Even a 1¢/kWh difference saves $10–$30/month on a 1,000 kWh bill.
- Reduce usage: Better insulation, efficient A/C settings, and LED bulbs add up.
- Compare plans at your usage level: Check the EFL at your typical kWh tier (500, 1000, or 2000 kWh).
- Look for promotions: Some providers offer first-month discounts or bill credits.
Ready to Lower Your Bill?
Compare all available plans for your address. Small rate differences add up to real savings.
See Lower-Cost PlansQuestions?
Still confused about a charge? Call us at 361-582-9724. We can walk through your bill and find you a better rate.