How to Read Your Texas Electricity Bill

Your Texas electricity bill breaks down into a few key sections. Understanding each one helps you compare plans accurately and spot errors before you pay.

The supply charge comes from your retail electric provider (REP). It typically includes an energy charge per kilowatt-hour (kWh) and sometimes a fixed monthly base charge. A kilowatt-hour is the standard unit of electricity consumption — running a 1,000-watt appliance for one hour equals one kWh.

The delivery charge comes from your TDSP, such as Oncor or CenterPoint. It includes a per-kWh distribution charge and a fixed customer charge. These fees are the same regardless of which REP you choose.

Taxes and fees include state sales tax, gross receipts tax, and sometimes a municipal franchise fee depending on your city.

To calculate your effective rate, divide your total bill by your total kWh usage. This true all-in rate is what you should use when comparing electricity plans, not just the advertised energy charge from your REP.

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