A typical Texas electricity bill has numerous components, which can make it confusing for customers to understand all the charges and costs correctly. Understanding your electric bill properly can also help you manage energy costs more effectively by making more informed decisions.
Read on for a closer look at the components of a Texas electricity bill. We’ll also highlight ways to save money by making smarter energy choices.
Unraveling Bill Mysteries: Texas Electricity Bill Basics
Your electricity bill displays a simple calculation of your total bill amount based on your energy consumption and plan type. A typical Texas energy bill includes components such as energy charges, TDU delivery charges and energy usage in kilowatt-hours (kWh).
The bill generally also includes information unrelated to billing, such as provider details, account information and bill payment options.
How Is Electricity Billed in Texas?
In Texas, you’re billed for your energy usage per kilowatt-hour over a set billing period. Many Texas homes track energy usage using a smart meter that counts the total energy you use in a billing period. The meter counts the number of kWh you consume in a month, which the provider multiplies by the energy charge and then adds the TDU charges and any other applicable fees.
How To Read Your Electricity Bill: A Step-by-Step Guide
Your Texas electric bill includes a billing summary, energy consumption details and plan information. Below is an overview of four important components of your bill.
Account Details
The top section of your bill displays your account details, including your account number, name, address and ESI ID number, which is tied to your electric meter.
Billing Summary
Perhaps the most important section on your bill, the billing summary displays information related to energy usage and the costs associated with it. Normally provided as a chart, the summary shows the billing start and end dates, the number of kilowatt-hours consumed, current charges, payable amount, due date and previous balance, if any.
Energy Usage Information
Your bill also includes a section about energy usage information or usage history, helping you understand your consumption trends over the previous months. The information is usually displayed as a bar chart, condensing annual details into one section.
Plan Details
Your bill displays information about your active plan. However, different providers can include this information on different parts of the bill. Some providers have a separate section with plan information, while others may simply mention the plan name in the bill amount calculation section. Your bill also has the plan’s expiration date on it, either in the separate “plan details” section or in the chart showing billing dates and energy consumption.
Understanding Energy Charges
As mentioned earlier, the energy charges section is the most important part of your bill. Also known as the billing summary, it shows how your provider calculated your bill amount, what your previous balance is and how much you currently owe the company. Here’s a snapshot of the billing summary of a Reliant Energy bill:
The top portion of this summary shows information about the previous balance, while the lower section shows the calculation for the current bill. In this example, Reliant charges the user $0.061 per kWh, resulting in an energy charge of $107.30.
Below that, you can see the TDU delivery charges, which, in this case, are from Oncor. Finally, this customer also has to pay a small amount for the gross receipts tax reimbursement charges. Note that not all electricity bills will include this charge and utility delivery charges. However, where you live in the state will determine which utility company charges you for power delivery.
Decoding TDU (Transmission and Distribution Utility) Fees
TDU fees are a major component of every electric bill. For example, Oncor’s TDU charges make up about 40% of the total bill in the example bill we saw above. As the name suggests, TDU charges are something that your transmission and distribution utility charges for the delivery of power, which includes the cost of power grid maintenance and upgrading of the transmission infrastructure.
TDU charges typically comprise two components – a flat monthly fee and a rate per kilowatt-hour. For instance, Oncor charges a fixed amount of $4.23 per month and 5.2974 cents per kWh of energy usage. Here is a table that shows TDU charges for all six electric utilities in Texas:
These are the current utility company delivery fees for the TDUs in deregulated areas of Texas. You’ll notice that Oncor and CenterPoint tend to charge the lowest delivery rates, while TNMP and LP&L have higher rates per kilowatt-hour. We captured this image from TXU’s website on January 24, 2025.
What Is the Difference Between Energy Charges and TDU Fees?
The main difference between energy charges and TDU fees is that your provider sets the price of energy charges while the utility company decides on TDU charges. Energy charges typically make up a larger portion of the total bill, while TDU charges are lower.
If you have a fixed-rate energy plan, your energy charge will stay the same for the duration of your contract. However, TDU delivery fees can change twice per year, in spring and fall. TDU delivery charges can also be updated periodically throughout the year with approval from the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT).
Taxes and Surcharges on Your Energy Bill
Similar to your other purchases, you need to pay sales tax on your electricity consumption. The authorized taxing authorities in your area charge the sales tax on your bill. These include your city, state or even special purpose districts.
Rate Structures: Fixed vs. Variable Rates
Fixed-rate plans require you to sign a contract that can range from a few months to several years. These plans have a constant price throughout the contract period, offering predictable energy bills. However, if you switch your plan while in the middle of a fixed-rate contract, you may have to pay an early termination fee (ETF).
Variable rate plans offer pricing that changes based on market trends and at the provider’s discretion. With no contract, it’s easier to switch your plan whenever you like. However, you may also be more susceptible to sudden price hikes in a variable-rate plan. Also called month-to-month plans, variable-rate plans charge different rates on a monthly basis, with prices often increasing based on market conditions. We generally don’t recommend variable plans.
Additional Fees and Charges
You may also see other, mostly non-recurring charges on your bill. For example, the provider can charge you late fees if you haven’t paid your previous bill by the due date.
If the provider disconnects your power for unpaid bills, it may even charge you a reconnection fee. Some providers may also charge a disconnection notice fee. Depending on your plan, you may also see a minimum usage fee on your bill if you do not cross the required usage threshold.
Meter Information and Readings
Your energy bill displays basic information about your customer account. Most providers will have a separate section for this information in their bills. This section includes your meter number, invoice number and electric service identifier ID (ESI ID), which is specific to your address.
Understanding Billing Periods and Service Dates
Texas providers generally use a monthly billing period. However, bill generation dates can shift based on weekends, holidays or weather issues. Your bill mentions the service dates for that billing period, which are the start and end dates for which they measure your usage.
You can find these on your bill in the section that displays your account information and energy consumption details. If your provider offers an online account or mobile app, you can also check your consumption details and service dates online or in the app.
Payment Options for Your Texas Electricity Bill
All energy suppliers in Texas offer several bill payment options. You can pay your bill online using your light company’s online portal or set up automatic payments by providing your card details. You can also pay your bills the old-school way by visiting a payment location and paying in cash or sending a check or money order by mail. Most providers also offer phone payment options where you can pay using your card details.
How To Use Your Bill To Compare Rates
You can compare your existing electric plan with other plans using information on your bill. The main factor of comparison is the price of electricity per kilowatt-hour. You can look at the “energy charge” on your bill and compare it with the energy in the electricity facts label (EFL) for new plans to figure out which is cheaper. Note that you won’t need to compare TDU charges unless you are moving to an address that falls under the service territory of another TDU. You may also need to compare base charges and minimum usage fees to see which plan will best meet your needs.
Common Terms on Your Texas Electricity Bill
The following are a few common terms and abbreviations on your Texas bills with their full forms and explanations:
- ESI ID: This stands for Electric Service identifier and is a number unique to your property address, identifying it on the Texas power grid.
- PUC or PUCT: This stands for the Public Utilities Commission of Texas and is the organization that regulates the state’s utilities for electricity, telecommunication, water and sewer systems.
- TDU or TDSP: Respectively, these stand for transmission and distribution utility or transmission and distribution service provider. Whatever abbreviation you find on your power bill, this is the utility company that manages, maintains and upgrades the power grid.
How To Spot Billing Errors
Occasionally, you may get an energy bill with errors. There are a few ways to identify mistakes on a bill. For example, look for the energy charge and other charges and ensure they are the same that the provider promised in the EFL. We also recommend checking for duplicate charges and unfamiliar charges. You should also ensure that you’re paying for the plan you originally selected. Lastly, don’t forget to check the usage and gauge if you actually used the number of kilowatt-hours mentioned on the bill.
What Should I Do if I Think There’s an Error on My Bill?
If you believe your energy bill contains an error, contact your energy provider. Your bill has a section with the supplier’s contact information. The PUCT also requires each provider to offer a toll-free number.
Smart Energy Choices: Using Your Bill To Save Money
Analyzing your bills for usage patterns and bill amount trends can help you make changes that reduce your monthly energy bills. For example, suppose you notice that your bills are particularly high during summer and you use your air conditioner regularly. In that case, you may want to reduce your AC’s power consumption by slightly raising its temperature or by investing in energy-saving windows.
If you have enrolled in a time-of-use plan and your bill seems high, it’s likely because you consume a lot of energy during peak demand hours. You can reduce your bill by shifting your consumption to lower-priced hours, such as doing your laundry at night or on weekends.
We also recommend considering a straightforward, fixed-rate plan if your time-of-use plan is causing high bills. So-called “free energy plans” can often cause confusion around how and when to use power to save the most money.
Sample Electricity Bill
Here’s a sample electric bill for a Gexa Energy plan. See the image below for details on what information lies in which section:
A: Account number, amount due and due date
B: Billing summary, including previous balance, current charges and late fees
C: Historical electricity usage
D: Provider’s contact information
E: Checkbox to apply for bill payment assistance
F: Provider’s mailing address and phone number
G: Meter reading information, including energy usage and service dates
H: Energy charges details
I: TDU charges details
Final Thoughts: Taking Control of Your Electricity Costs
Knowing how to read your Texas electricity bill is essential if you want to have low electricity bills and no billing surprises. We recommend thoroughly understanding the components of your bill, such as energy charges, TDU charges and additional fees, as well as all the other information present on your bill.
This can not only help you catch any billing errors but can provide you with the information you need to take charge of your energy costs. Whether you need to switch energy plans or adjust how and when you use energy, you can find helpful information on your monthly energy bill.
Frequently Asked Questions About Electricity Bills
Is the bill provided by the utility or provider?
Your energy supplier (REP) sends you your energy bill every month, not your utility company. However, you will see delivery fees from your utility company on your provider’s monthly energy bill. Additionally, the utility company is responsible for checking your meter readings and supplying that information to your provider. If your home has a smart meter, this process is automatic.
How often will I receive my electricity bill?
In Texas, you can expect an electricity bill every month. Because of weekends, holidays and other factors, your bill may not arrive on the same day each month.
Can I change my billing cycle?
No, you cannot change your electricity billing cycle in Texas. However, if it adds convenience, you can request your bank to change your credit card’s billing cycle.
How is my energy usage measured?
Your light company measures energy usage in kilowatt-hours, a measurement of energy usage over time. It’s the most common unit of energy measurement. Your utility company will measure your monthly energy consumption remotely using a smart meter installed on your property or by performing meter readings on-site if your home has an old analog meter.
