How Much Is the Average Electric Bill in Texas?
Figuring out the “average electric bill” can be tricky. To start with, regions, counties, and towns all have their own specific averages. On top of that, electric bills may even vary within a municipality.
How Do Electric Companies Calculate Your Bill?
Sometimes it can be really hard to understand your electric bill. Among other things, when electric bills are hard to understand, it can make it difficult to budget effectively as you calculate your costs. However, cutting through all the white noise to determine your average electric bill can be surprisingly simple. It all consists of four basic components:
Your energy charge equals the amount of kilowatt-hours (kWh) recorded over the course of a billing cycle multiplied by your agreed upon electric rate set by your Residential Electric Provider (REP). This usually accounts for the bulk of your monthly electric bill.
Transmission and Distribution Service Provider (TDSP) fee
The TDSP fee is an additional charge that pays for the use and maintenance of the infrastructure (i.e. power lines, etc.) used to deliver your electricity. These are monthly fees that REPs like Amigo Energy pass onto you in your bill on behalf of your TDSP.
Base charges are a little less intuitive. Basically, depending on your energy plan, REPs might charge you a fee if your monthly electricity usage doesn't meet the minimum kWh requirement detailed in your electric contract. This is also called a "minimum-use fee" or "minimum-usage charge."
Finally, your sales tax will include a tax from your municipality and a miniscule Public Utility Commission of Texas tax. If the word "tax" makes your blood boil even just a little, it's not as bad as it may sound, we're talking cents and single-digit dollars, usually.