How to Read Your Texas Electricity Bill
5 minute read · Bill basics
Most Texans glance at the total amount due and move on. But understanding what's inside that number reveals why electricity shopping is so confusing — and gives you the knowledge to actually compare plans on equal terms.
A Texas electricity bill is built from three layers, each controlled by a different entity. Here's what they are and what they mean.
Charge 1: The energy charge (from your REP)
Your Retail Electricity Provider (REP) — Reliant, TXU, Gexa, Rhythm, or whoever you signed up with — charges you for the electricity itself. This is the advertised rate you see when shopping: a per-kWh rate multiplied by your monthly usage.
Some plans also include a monthly base fee (typically $5–$10) that is charged regardless of how much electricity you use. Others include bill credits that only apply if your usage hits a certain threshold — for example, a $50 credit if you use more than 1,000 kWh. These credits can make a plan look cheap at one usage level and expensive at another.
Charge 2: TDU delivery charges (from your utility)
Your Transmission and Distribution Utility (TDU) owns the poles, wires, and infrastructure that physically deliver electricity to your home. You pay them separately — even if you never deal with them directly.
The TDU delivery charge has two parts: a small fixed monthly charge (typically $3–$5) and a per-kWh charge (typically 3¢–5¢). Together, they add roughly $35–$50 per month to a typical 1,000 kWh bill — before the REP adds their portion.
This is why an advertised rate of 5¢/kWh produces an actual bill of 8–9¢/kWh. Many providers advertise their energy-only rate and let the TDU charge show up as a surprise. The only way to see the true all-in rate is on the Electricity Facts Label.
Charge 3: Taxes and fees
On top of the REP and TDU charges, your bill includes several taxes and fees:
- State sales tax — 6.25% on the taxable portion of your bill
- Local sales tax — Up to 2% depending on your municipality
- PUCT assessment — A small regulatory fee ($0.65/month for most customers)
- TDU pass-through fees — Miscellaneous charges the utility passes to customers
These typically add 5–10% on top of the combined REP + TDU charge.
The Electricity Facts Label (EFL)
The PUCT requires every electricity plan in Texas to have an Electricity Facts Label — a standardized one-page disclosure that shows the all-in rate (energy + TDU + average fees) at three usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh per month.
The EFL is the only document that gives you an apples-to-apples comparison across plans. If a provider's advertised rate is significantly lower than the 1,000 kWh rate on the EFL, they're advertising an incomplete number.
Always check the EFL before signing up — and pay attention to whether the rate changes significantly between the 500 and 1,000 kWh columns. A big gap usually signals a bill credit plan designed to look cheap at high usage but expensive at average usage.
Putting it all together
When you compare plans on Texas Energy Compare, the rates shown are pulled from EFL documents and normalized to include TDU delivery charges — so the number you see reflects your actual cost, not just the energy-only portion. We show rates at 500, 1,000, and 2,000 kWh so you can compare at the usage level closest to your actual consumption.
Enter your ZIP code below to see every available plan in your service area, sorted by true all-in rate.