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Your Texas electricity bill is more than one number. It’s a stack of charges, credits and dates that most people never look at. Buried in there are the clues that tell you whether you’re overpaying. Here are the three electricity bill mistakes we see most often, and how to avoid them.
Key takeaways
- Base charges quietly raise your real price per kWh, especially in low-usage months.
- Delivery charges are a big part of the bill, and they’re the same with every provider in your area.
- Missing your contract end date is the most expensive mistake of all.
- Divide your total bill by your kWh to find your true rate.
The basic structure of a Texas electricity bill
Most bills have two main pieces:
- Energy charges: what your provider charges for the electricity you use
- Delivery charges: what your utility (TDU) charges to get it to your home
For a full line-by-line tour, see how to read your Texas electricity bill.
Mistake #1: Ignoring the base charge
Many plans include a monthly base charge, a flat fee you pay no matter how much electricity you use.
Here’s why it matters: a $9.95 base charge on a 500 kWh month adds about 2¢ to every kWh. A plan that looked like 14¢ is suddenly closer to 16¢. On a 2,000 kWh summer month, the same fee barely registers. That’s why plans with base charges can look great in July and painful in March.
Mistake #2: Not understanding delivery charges
TDU delivery charges are what your utility, such as CenterPoint or Oncor, charges to maintain the lines and deliver your power. They’re regulated, so they’re the same no matter which provider you choose, and they can be a large share of your total bill.
You can’t negotiate delivery charges, but understanding them shows you which part of the bill is up for grabs: the provider’s energy price, fees and credits.
Mistake #3: Missing your contract end date
Your contract has an end date. When it passes without a new plan in place, you’re typically moved to a month-to-month rate that can be much higher. Your provider is required to send a notice before your term ends, but it’s easy to overlook in a busy inbox.
Check your contract end date today. If it’s within 60 days, it’s time to shop. Here’s our timing guide.
Find your real rate in 30 seconds
Take your total amount due and divide it by your total kWh used. That’s your all-in price per kWh. If it’s well above what you thought you signed up for, something in the fine print is working against you.
Helpful official resources: Smart Meter Texas · Public Utility Commission of Texas
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Frequently asked questions
Where is my contract end date on my bill?
Many providers print it on the bill or in your online account. If you can’t find it, your welcome documents or a quick call to your provider will tell you. Or send us your bill and we’ll find it.
Why is my bill higher even though my rate is fixed?
Common reasons include higher usage, a lost bill credit, a base charge on a low-usage month, a change in delivery charges, or an expired contract.
What is a good all-in rate per kWh in Texas?
It depends on the market and your area’s delivery charges. Comparing your all-in rate to current plans for your address is the best way to know.
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