Electricity Bill in Texas

How Do I Read My Electricity Bill in Texas?

As a Texas resident, you may be wondering how to read your electricity bill. Bills in Texas can be confusing, since they include details about both the supply of electricity and the delivery of it. 

In this post, we’ll break down each section of a typical Texas electricity bill and explain what it means. 

By understanding your electricity bill, you can more easily monitor your energy usage and save money. Let’s get started!

Key Takeaways

  • Reading your energy bill can be tricky, particularly if you have no idea what your meter readings are or haven’t ever received a previous bill from your energy suppliers in the past. 
  • Most electricity bills will contain things like details on your current bill and use rate, energy costs in your area, transmission rates, and so on.
  • You can reduce your utility bill by monitoring your energy use, switching to renewable energy sources (like solar panels), and avoiding electricity use during peak times. 

Navigating Your Electricity Bill 

Electricity bills can be confusing, but fortunately, there are a few simple tips that can help you make sense of your bill and keep your costs under control. By understanding these different charges, you can make informed decisions about how to reduce your electricity consumption and save money on your bill.

  1. Account Information 

Most electricity bills contain a section called “Account Information.” This section provides important information about your account, including your account number, the date your service began, and your current balance. It also shows how much electricity you’ve used over the past billing period. Reading this section carefully can help you keep track of your usage and avoid any surprises on your bill.

The first thing to look for in this section is your account number. This number is unique to your account and can be used to identify you if you need to contact your utility company. Make sure you know where your account number is located in case you need to reference it in the future.

Next, take a look at the date your service began. This date can be helpful if you’re trying to estimate how much electricity you use in a month. If you’ve only had service for a few weeks, for example, your usage will likely be lower than if you’ve had service for several months or even years. Keep this in mind when comparing your usage to others’.

  1. Bill Summary 

The “Bill Summary” section of your bill contains key information about your account, including the billing period, the amount of electricity used, the total charges for the month, and any credits or payments applied to the account. This section also lists any past due balances and late fees. 

By taking a few moments to review this section of your bill, you can stay on top of your account and avoid unexpected charges.

  1. Electricity Usage Summary

The next section, electricity usage summary, lists the total amount of electricity you used this month and compares it to last month and the same month last year. This section also provides information on how your energy consumption compares to the average customer. 

  1. TDU Charge 

One section of your bill that might be confusing is the TDU charge. TDU stands for Transmission and Distribution Utility, and this charge covers the cost of delivering electricity to your home. It includes things like maintaining power lines and customer service. 

The amount of the TDU charge varies depending on where you live, but it will be listed separately on your bill. To get a better idea of how much this charge is, take a look at your bill and find the section labeled that refers to delivery. The amount listed there is what you’re being charged for delivery.

  1. Energy Charge 

The energy charge is the cost of the electricity that you use each month. It’s based on the amount of electricity you use, as well as the rate that your utility charges. The energy charge is usually the largest part of your bill. In some cases, it may also include a fuel charge, which is the cost of the natural gas or oil that is used to generate electricity. The energy charge is what you’re paying for the actual electricity that you use.

The rate that you’re charged per kilowatt hour (kWh) is defined in the Electricity Facts Label for your plan. To get a sense of how much your electricity usage costs, look at your most recent energy bill and find the energy charge. This will give you a good idea of how much you’re paying for electricity each month.

  1. Taxes

If you’ve ever looked closely at your electricity bill, you may have noticed a few taxes and surcharges listed. These can include things like the federal universal service fee, state sales tax, and local utility tax. 

While the amount of these taxes can vary depending on where you live, they all serve to help support important programs that keep the lights on. 

State sales tax, meanwhile, goes toward funding things like infrastructure maintenance and public safety initiatives. And finally, local utility tax helps to support the operation of your local power company. 

How Are Energy Charges Calculated? 

A kilowatt-hour (kWh) is a unit of energy that is equal to one thousand watts of power for one hour of time. In terms of electricity, this is the amount of energy that is needed to keep a one-thousand-watt appliance running for one hour. 

For example, a typical light bulb uses about sixty watts of power, so it would take approximately seventeen hours to use up one kilowatt-hour of electricity. 

However, this amount can vary depending on the state or country in which you live, as well as the current price of electricity. In addition, factors such as the number of people living in the home and the types of appliances that are used can also impact the monthly electricity bill.

Here’s How to Avoid Surprises 

Most people don’t spend a lot of time thinking about their electricity bill. After all, it’s just a necessary part of life, right? Well, not quite. 

Your electricity bill can actually be a source of stress and anxiety if you’re not careful. 

One way to avoid surprises on your bill is to know whether you have agreed to a fixed or variable rate with your provider. 

A fixed rate means that your rate will not change for the duration of your contract, while a variable rate means that your rate can fluctuate based on the market. 

While a fixed rate may seem like the obvious choice, it’s important to remember that a variable rate can actually lead to lower bills during periods of low energy demand. As a result, it’s important to weigh your options carefully before signing any contracts.


Texas has a deregulated electricity market, which means that residents and businesses can choose their own electric company. 

There are many different plans available, so it is important to understand your bill in order to make the best choice for your needs.  Your electricity bill will show how much energy you used and how much it cost. The bill also includes charges for delivery and transmission of electricity, as well as state and local taxes.

If you are a Texas resident, understanding your electricity bill can be confusing. However, by reading this blog post, you should now have a better understanding of the different charges on your bill and what they mean. If you still have questions after reading this post or need help interpreting your bill, don’t hesitate to contact us! We would be happy to assist you.

Questions Others Are Asking 

Will I be charged an early termination fee if I end my contract early? 

The answer to this question depends on the terms of your contract. Some companies do charge early termination fees, while others do not. Some companies charge a flat fee, while others charge a percentage of your remaining balance. It’s important to read the fine print of your contract so that you know what, if any, early termination fees you’ll be responsible for. Even if your contract does have an early termination fee, it may still be worth it to cancel if you’re able to find a better deal elsewhere.

How does prepaid electricity work? 

There are several benefits to using prepaid electricity, including the ability to budget for your electricity usage and avoid late payment fees. In addition, prepaid electricity can help you avoid deposit requirements and connect fees. To sign up for prepaid electricity, you will need to provide your contact information and account number. You will then be able to select a payment method and choose how much electricity you would like to purchase. Once you have paid for your electricity, you will be able to use it until your balance runs out. You can then replenish your balance by making another payment.

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