The two company names

Your Texas electric bill comes from your retail electric provider (REP) — TXU, Reliant, 4Change, whoever you signed up with. But it also names your transmission and distribution utility (TDU): Oncor, CenterPoint, AEP, TNMP, or LP&L. The REP is who you pay. The TDU is who delivers the power. The REP collects the TDU's delivery charges as part of your bill and passes them through.

The three types of charges

Energy charges (from your REP)

This is what most people think of as "the electricity." It's the per-kWh rate your REP advertises, times your usage. If your plan is 15.6¢/kWh and you used 1,200 kWh this month, that's $187 in energy charges. This is what competition is supposed to drive down.

Delivery charges (from your TDU)

The TDU charges to move electricity across the wires to your house. Two parts: a per-kWh delivery rate (currently 4-5¢/kWh depending on your area) and a flat monthly customer charge (usually $5-10). Identical across every REP in your area — set by the PUC. Non-negotiable.

Base charges (varies)

Some REPs tack on their own monthly flat fee on top of the TDU's customer charge. Sometimes it's labeled "base charge," "customer charge," "monthly service fee," or just "fee." Whatever it's called, you pay it every month no matter how much electricity you use.

Then taxes

Three taxes show up on most Texas bills:

  • State sales tax (6.25%) on your total electricity charges.
  • City or local sales tax (varies, usually 1-2%).
  • PUC assessment (a fraction of a cent per kWh) — funds the Public Utility Commission. This is why power2choose.org is free.

Low-income customers may also see a discount through the Texas LITE-UP program.

What to look at to verify your bill

Three numbers, three checks:

  1. Total kWh used — does it match your historical pattern? Summer spike is normal. A 2× jump in a shoulder month is worth investigating.
  2. Energy rate — divide your energy charge by your kWh. Is it close to your contract rate? If not, call your REP. Contract renewed without telling you, maybe.
  3. TDU delivery — rough check: 4-5¢ per kWh plus a $5-10 flat fee. If it's wildly different, the REP may have mis-billed a passthrough.

What to do if something looks wrong

First, call your REP. They handle billing. If they can't or won't resolve it, you can file a complaint with the Public Utility Commission of Texas at puc.texas.gov. PUC complaints get attention fast — REPs are rated publicly on their complaint counts.