How to Read Your Electricity Bill

Sample Texas Electricity Bill

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Texas Electricity Bill Glossary

You will find some jargon on your bill, but we can decode it.

ESI ID (Electric Service Identifier)

This is the unique identifier of the electricity meter for your address.

• If you have multiple meters (one for the house, one for the shed) you will have multiple ESI IDs.
• Each ESI ID will generally get it's own bill, unless your current provider offers some sort of combined billing.

kWh (kiloWatt-hours)

A 'kWh' or 'kiloWatt-hour' is a measure of electricity usage.

One 'kWh' is equal to using a 1000 watt appliance for one hour.

To calculate the cost to operate an electrical appliance, use the following process:

• Find the wattage usage of your appliance. For our example, let's say a hair-dryer uses about 1200 watts of energy.
• If you divide the watts by 1000, you get kiloWatts (kW), so our hair dryer is consuming 1.2 kiloWatts when running.
• Multiply 1.2 kW X 1 hour = 1.2 kWh (This is how much total energy was consumed)
• If your electriciy rate is 15 cents per kWh, then running your hair dryer for an hour costs about 15 cents X 1.2 kWh = 18 cents.

Energy Charge

The amount you pay the provider for each kWh of electricity you use.

The 'Energy Charge' or 'Energy Rate' is the price in cents that you pay your electricity provider for the actual electricity that you consumed during that billing period.

With fixed-rate plans, your energy charge is consistent from month to month, so your bill will go up and down with your usage. You can check out our recommended fixed-rate electricity plans and order online.

Average Rate

Your total bill divided by your usage.

Your bill will likely show an 'average rate per kWh' or some variation of that. The average rate is the total of your bill (including all fees and taxes) divided by your kWh usage. Generally, your average rate per kWh will be slightly higher when you use less electricity, because there are monthly fixed fees that don't change, so when you use less, the average goes up a bit. Don't confuse 'average rate' with your 'energy charge', which is the amount you are being charged specifically for the electricity you use, and is separate from fixed monthly customer fees.

Bill Period or Cycle

The dates this bill covers. Your Texas utility company will read the meter at their discretion. This will not always be a month or 30 days. If you are on a plan that has "monthly" fees, that fee will appear on your bill, regardless of how many days were within the period.

What are the Rules around Estimated Usage for Billing?

In the Texas electricity market, estimated billing occurs when your meter reading is unavailable. PUCT rules permit providers to estimate usage based on historical consumption patterns when the Transmission and Distribution Utility (TDU) cannot access your meter. Providers must clearly mark bills as "estimated" and adjust your account once an actual reading is obtained. You have the right to submit a self-reading to avoid estimation. If estimates occur for three consecutive months, you may request a meter verification without charge.

Energy Rate vs. Average Rate

the 'Energy Rate' is the price in cents that you pay your electricity provider for the actual electricity that you consumed. The 'Average Rate' is the total you paid for electricity service (including all TDSP fees, bill credits, taxes, etc) divided by the number of kWhs you used that month.

Average Bill

Most customers in Texas use about 1050-1400 kWh of electricity per month. According to various sources, the average electricity rate in Texas is about 11 cents. This would make the average Texas electricity bill about $115 to $154 per month.

Of course, if you have a higher electrical load than normal you will use more energy, and thus your bills can easily be higher than that. High load items would be things like a swimming pool or electric heat in the winter.

Your home size will have an impact on your usage. A smaller 600 sqft apartment might use 500-600 kWh, while an expansive 3,000 sqft. home could easily use 2,200 to 3,000 kWh.

What is a TDSP

The Transmission and Distribution Service Provider (TDSP) maintains your local electrical infrastructure

The TDSP is the utility company that maintains the power poles and lines in your area.

In Texas, there are five TDSPs serving deregulated areas:
CenterPoint Energy, Oncor Energy, TNMP, AEP-North and AEP-Central.

TDSP Delivery Charges and fees will show up on your bill in a couple ways - monthly fixed amounts, and per kWh amounts. These TDSP fees will be applied to your bill no matter who your provider is, although some providers might 'bundle' the rate, in which case they are included in your energy charge generally speaking.

Credits

Credits will reduce the amount you owe on your bill.

Usage Credits

A credit on your bill when your usage falls within certain thresholds.

Solar Buyback Credits

A credit you receive when your solar panels feed electricity to the grid.

There are a few angles to understand about Solar Buyback Plans:

• Does the provider cap the credit at the total amount of your bill?
• Will the provider 'bank' excess energy until the next month?
• Does the provider pay you more or less for your electricity than they charge you for theirs?

We have vetted and reviewed Solar Buyback plans available for you to order online.

What Are the Rules Around Deposit Refunds?

In the Texas electricity market, deposit refunds are typically issued when:

• You've made 12 consecutive on-time payments
• You've terminated service and paid your final bill
• You've provided satisfactory credit history or guarantees

Deposits must be returned with interest within 30 days of meeting these conditions. The interest rate is established annually by the Public Utility Commission of Texas (PUCT). If you're switching providers, your deposit won't transfer. You'll receive a refund from your old provider and may need to pay a new deposit.

Taxes

Taxes will be applied based on your bill amount

Taxes are controlled and mandated by the state. They will be the same regardless of who you choose as your electricity supplier.

Sales Tax

Taxes assesed by city, county, and state governments.

Fees

Early Termination Fee (ETF)

If you switch away from you will likely be charged an ETF (also known as a cancellation fee) unless you are on a month-to-month (no contract) plan.

These cancellation charges are allowed because has probably purchased electricity on the wholesale market to cover your expected usage, and if you leave, they are stuck with excess power that they have already paid for.

Late Charges

If you don't pay your bill by the due date, the provider is allowed to impose a late fee on your account. The late fee is limited to a percentage of your outstanding balance.

What are The Rules Around Disconnection Fees?

In the Texas electricity market, disconnection fees typically range from $25-$50 and are charged when your service is terminated for non-payment. Retail Electric Providers (REPs) must provide at least 10 days' notice before disconnection. Disconnections are prohibited during extreme weather events, weekends/holidays, or for customers with critical medical needs who have properly notified their provider. Low-income customers and those facing hardship may qualify for payment arrangements to avoid disconnection. Each REP must clearly disclose their disconnection policies and fees in their Terms of Service agreement.

What are The Rules Around Disconnection Notices?

In Texas, electricity providers must send a disconnection notice at least 10 days before terminating service. During extreme weather (summer heat advisories or winter freezes), disconnections are prohibited. Providers cannot disconnect medically vulnerable customers with proper documentation. For low-income customers and those receiving government assistance, additional protections may apply. If you receive a disconnection notice, contact your provider immediately to arrange payment plans. The Public Utility Commission of Texas (PUCT) oversees these regulations and can assist with disputes.

What are The Rules Around Reconnection Fees?

In the Texas electricity market, reconnection fees typically range from $25 to $50, depending on your Retail Electric Provider (REP). These fees apply when service is disconnected due to non-payment and then restored. PUCT regulations require providers to reconnect service within 24 hours of payment. Some REPs may waive these fees for first-time occurrences or for customers facing financial hardship. During extreme weather events, disconnections are prohibited under Texas law, and expedited reconnections may be mandated. Always check your REP's Terms of Service for specific reconnection policies.

What is a Monthly Recurring Charge (MRC)?

A Monthly Recurring Charge (MRC) in the Texas electricity market is a fixed fee that appears on your bill each month regardless of how much electricity you use. This charge typically covers the retail electricity provider's administrative costs, billing services, and customer support. Many Texas electricity plans include an MRC in addition to the per-kilowatt-hour energy charge. When comparing plans, it's important to factor in both the MRC and energy rates to determine the true cost of your electricity service.

TDSP Fees or 'Delivery Charges'

These are fees charged by your utility, and are present regardless of which electricity provider you have chosen.

Fees are charged from the utility and are passed on to the retail electricity provider

TDSP fees can be a fixed charged per bill, or a variable charge based on how much electricity you used during that period. There are a few providers that offer "bundled" rates, which include these fees in their Energy Charge. In bundled rates, your actual average rate will not change during the course of your contract (assuming the plan has no monthly charge).

Some of the TDSP fees you may be charged are:

• Customer Charge
• Distribution Cost Recovery Factor
• Distribution System Charge
• Energy Efficiency Cost Recovery Factor
• Metering Charge
• Nuclear Decommissioning Fee
• PUC Assessment
• System Restoration Charge
• Transition Charge (1-5)
• Transmission Cost Recovery Factor
• Transmission System Charge

The TDSP fees charged and their amounts will vary depending on which TDSP services your area. As of May 2018, Oncor has the lowest per-bill charge at $5.25, while AEP-North has the highest, at $10.53 per bill. TNMP has the lowest average usage charges, at around 3.3¢/kWh, and CenterPoint is the highest, around 4.1¢/kWh.

Electric companies generally have the same energy charge applied, no-matter which TDSP the plan is in. The difference in the TDSP fees are the reason the same plan can cost around a penny higher in CenterPoint vs TNMP.

Billing FAQs

Can I add a roommate's name to the electricity account?

Yes, you can add a roommate's name to your electricity account in Texas. Most retail electricity providers (REPs) allow you to add an authorized user or convert to a joint account. Contact your provider directly to request this change. They'll typically require information from both parties and may need your roommate's consent and identification. Adding a roommate doesn't necessarily make them financially responsible unless you change the account type to joint. Some providers may charge a small processing fee for account modifications.

How can I sign up for paperless billing in Texas?

To sign up for paperless billing with your Texas electricity provider, log into your online account through your provider's website or mobile app. Look for "Billing Preferences," "Account Settings," or "Paperless Billing" options in your dashboard. Toggle paperless billing on and confirm your email address to receive electronic statements. Most major Texas providers like TXU Energy, Reliant, and Constellation offer this feature. If you can't find the option online, call your provider's customer service number listed on your bill for assistance.