What's Actually on Your Texas Electric Bill (2026)
Texas is the only state where supply and delivery come from different companies on the same bill. Here's what each line means and which ones you can change.
Why is my bill so high when the rate is only 5.0¢/kWh?
Because the per-kWh rate is only one of six charges stacked on a typical Texas bill. Supply, delivery, transmission, a fixed customer charge (averaging $5.87/month across 3 Texas utilities), riders, and taxes all sit on top of each other. Roughly half of the total is the supply rate you can shop. The other half — delivery and fixed charges — stays the same whether you switch or not. Below: each line, what it costs, and which ones you can actually move.
A typical Texas bill, line by line
For a residential customer using 1,000 kWh per month — the U.S. average — here's what each line on the bill actually costs.
Sample residential bill — Texas, 1,000 kWh
Statewide averages — your actual bill varies by utility and supplier.
| Energy (REP, 1000 kWh × 9.5¢) | $95.00 |
| TDU delivery (1000 kWh × 4.5¢) | $45.00 |
| TDU customer charge | $4.39 |
| PUC assessment | $0.60 |
| Sales tax (8.25%) | $12.00 |
| Total monthly bill | $156.99 |
Statewide average customer charge across 3 Texas utilities: $5.87/mo. Average default residential energy rate: 5.0¢/kWh. Source: NREL URDB.
What every line means
Utilities use slightly different labels on their printed bills, but every Texas electric bill includes some version of each of these charges:
Energy charge (your REP)
The competitive electricity rate from your retail electric provider — the only line item shoppable in Texas.
TDU delivery charge
Regulated charge from Oncor, CenterPoint, AEP Texas, or TNMP for delivering power over the wires. Identical across all REPs in your territory.
TDU customer charge
Fixed monthly charge from your TDU for being connected to the grid. Around $4-5/month for most Texas residential customers.
Base / minimum usage fee
Some REP plans include a monthly base fee or a minimum usage charge if you use less than 800-1000 kWh. Read the EFL.
PUC assessment
Texas PUC regulatory fee of roughly 0.06¢/kWh, set by statute.
Sales tax
State, county, and city sales tax — varies by jurisdiction. Most residential customers in incorporated areas pay 6.25% state plus local.
The big idea: Texas is the only state in our footprint where supply and delivery come from different companies on the same bill. Your retail electric provider is required by PUCT rule to itemize delivery, energy, and any base fees on the Electricity Facts Label (EFL) before you sign up.
What you can change vs. what you can't
Every line on a Texas electric bill falls into one of two buckets. Knowing the difference is the entire point of bill literacy.
You CAN change
- Your supply / generation rate (shop a competing supplier)
- Your usage — through efficiency, behavioral change, weatherization
- When you use electricity (if you're on TOU)
- Whether you're on the right plan structure for your household
You CAN'T change
- Your utility (it's set by your address)
- The distribution and transmission charges
- The fixed monthly customer charge
- Regulatory riders, taxes, and surcharges
The shoppable portion is roughly half your bill. A 20% improvement on the shoppable half = 10% off your total bill. That's the realistic ceiling of what switching suppliers can save you — anyone advertising "save 50% on your electric bill" is either confused or selling you something.
Why your bill went up
If your Texas electric bill jumped recently, the cause is almost always one of these four. Walk through them in order:
1. Your usage went up
Cold snap, heatwave, a new appliance, a houseguest, a new EV. Look at the kWh number on this bill versus last month and the same month last year. If kWh is higher, the cost was always going to be higher — supplier switching won't fix it.
2. Your supply rate reset
Your fixed-rate contract expired and you rolled to a month-to-month rate — typically 30-50% higher. Or your utility updated its default Basic Service rate (Massachusetts and Pennsylvania utilities reset their default rate every 6-12 months). This is the most fixable cause.
3. The utility raised distribution or fixed charges
Approved by the PUCT in a base rate case. These changes are announced months in advance and affect every customer of that utility equally. Shopping suppliers won't avoid them.
4. A new rider was added
New energy efficiency surcharge, storm response cost recovery, or transmission upgrade rider. Usually a few percent of your bill at most. Itemized on the bill.
Our Bill Grade tool reads your bill and tells you which of these four caused your increase — and which (if any) you can fix this month.
Texas utilities at a glance
Customer charge and default residential energy rate for each Texas utility. Click through to see live supplier rates available in that territory.
| Utility | Customer charge | Default rate | Tariff source |
|---|---|---|---|
| Oncor Electric Delivery | $4.23/mo | 4.6¢/kWh | Tariff PDF |
| CenterPoint Energy Houston | $4.39/mo | 4.8¢/kWh | Tariff PDF |
| AEP Texas | $9.00/mo | 5.6¢/kWh | Tariff PDF |
Want to know if your bill is high?
Upload your most recent Texas electric bill or type in a few numbers and we'll grade it against rates available in your area today. Free, no signup.
Frequently asked questions
What are all the charges on my Texas electric bill?
A Texas residential bill stacks several separate charges. The energy charge is the per-kWh price your retail electric provider charges for the electrons. A base or monthly service charge is a fixed dollar amount the REP collects whether you use any electricity or not. TDU delivery charges pay your transmission and distribution utility — Oncor, CenterPoint, AEP Texas, or TNMP — to move power to your meter. A TDU customer charge is fixed. A PUCT assessment funds the Public Utility Commission. Then state and local sales tax. Many plans also bundle the TDU charges into the displayed per-kWh price.
What is the difference between the REP charge and the TDU charge on a Texas bill?
In Texas, supply and delivery are split between two regulated entities. Your retail electric provider — Reliant, TXU, Gexa, Frontier, or any of the dozens of REPs — sells the energy. Your TDU owns the poles, wires, and meter in your area, and PUCT sets its delivery rates by tariff. You choose the REP. You cannot choose the TDU; it is determined by your address. Switching providers changes the energy charge and the base charge. The TDU pass-through charges stay identical because every REP buys delivery from the same utility at the same regulated price.
Why does my Texas electric bill spike in summer even when usage looks steady?
Two things drive a summer Texas bill higher. First, many Texas plans use tiered pricing that triggers a discount at exactly 1,000 kWh per month or punishes usage outside a narrow band. A bill that lands at 1,050 kWh can cost more per kWh than one at 1,150 kWh. Second, ERCOT wholesale prices spike during summer afternoons, and variable-rate or indexed plans pass that through. Even on a fixed plan, the TDU delivery rate updates twice a year on PUCT schedules. June and December rate changes show up on the bill cycle that follows.
How can I reduce the parts of my Texas electric bill I can control?
You can shop the energy charge and the base charge. Every Texas REP plan has an Electricity Facts Label that shows the all-in average price at 500, 1,000, and 2,000 kWh. Comparing the EFL at the usage level that matches your home is the single highest-leverage move. Locking a 12 or 24-month fixed plan removes wholesale price exposure. A time-of-use plan with free nights or weekends pays off only if you can shift heavy loads — laundry, dishwashers, EV charging, pool pumps — into the free window. TDU delivery, the PUCT assessment, and sales tax are not shoppable.