ince 2002, Texas electricity consumers have enjoyed a competitive landscape for energy choice. Companies offer a variety of rate options, billing terms, customer service, rewards programs, renewable energy options, and the list goes on. Texas electricity choice means more options and lower electricity bills for customers.
Radiant Energy is an independent energy solutions company for Texas electricity customers. Contact us today to schedule a free consultation with no obligations. We work with the top electricity providers in Texas to make sure you get lower rates and favorable contract terms.
Transmission and Distribution Utility (TDU)
A Transmission and Distribution Utility, better known as a TDU in Texas, is the local electric utility that distributes the electricity from power generation companies to consumers. There are 4 TDU’s in the deregulated Texas electricity market. The TDU is responsible for the delivery of electricity, managing power lines, your electricity meter, and more. If you ever have a power outage or down power lines, you should contact your local TDU.
Below is the full list of TDU’s and their contact information.
Current Texas Electricity Rates
Texas electricity rates change by each rate plan. Each Texas electricity provider has a number of rate plans and often multiple rate plans for a certain term. Texas electricity rate plans have details for each and every single one of them. Unfortunately, the competitive Texas electricity market has become inundated with retail providers and complicated rate plans. Choosing the wrong provider and rate plan can be costly. At Radiant Energy we have a strict set of guidelines we use when partnering with energy companies. Below is a list of current Texas electricity rates offered by our partners.
Below is a list of current Texas electricity rates offered by our partners.
Texas Electricity Bill – Common Charges
Below is a list of common charges on a Texas electricity bill and details to better understand them. Electricity bills in Texas include many of the charges below and are billed by your retail electricity supplier. Many of these charges are passed through from other parties so that consumers have only one electricity invoice.
A base charge on your Texas electricity invoice is a flat fee applied each month regardless of the amount of kilowatt (kWh) used. The base charge is similar to a Customer Service fee you may find on other bills. Base Charges vary by Texas Retail Electric Provider (REP) and the service plan you choose.
The current charges are the amount due for electric service for the most recent meter read period. The details of these charges should match your contracted electricity rate per kWh disclosed in the customer’s terms of service document, including applicable taxes and fees. The current charges will vary based on electricity consumption unless you are on a level or average payment plan, the level or average payment due shall be clearly shown in addition to the current charges.
Demand Charges are the costs for the rate at which electricity is delivered to you. In Texas electricity invoices, demand charges can vary based on an average electricity use over a designated period, individual billing cycles, or in real-time.
The energy charge on your Texas electricity invoice is the total cost of electricity consumed (kWh) during a billing period. Energy charges are typically calculated by multiplying your kWh rate X’s a number of kWh consumed. This amount is usually on a separate line item on your electricity invoice.
A Meter Charge is a monthly fee assessed by your TDU and approved by the Public Utility Commission of Texas (PUCT). The meter charge is a part of the TDU charges on your Texas electricity bill specifically for metering a customer’s electricity consumption.
Non-recurring Charges are fees assessed by your local utility (TDU). Some of these charges may include a new service initiation fee, a connection fee, a disconnection fee, a meter-reading fee for unscheduled meter read requests. In Texas electricity invoices, these charges are an individual line item and a direct pass-thru from your TDU, regardless of your retail electric provider.
The Amount Due is the total balance of charges for the current month and any unpaid balance from prior invoices.
Late Payment Penalties are charges assessed for the late payment of an electricity bill. The amount of the Late Payment Penalty may vary but is a set amount or percentage in accordance with the Public Utility Commission of Texas (PUCT).
City Sales Tax is imposed on the consumer for the tax of retail electricity sales. Local tax rates vary but the current maximum local and state sales tax is set to a maximum of 8.25 percent. Texas has a current tax code under section 151.317 that exempts sales tax for certain consumers including residential use, agriculture, and others.
The Advanced Metering Charge (AMS) is a fee on your Texas electricity bill for the use of Advanced Metering Systems, sometimes referred to as smart meters. This amount is in addition to a standard metering charge, but it may be bundled or as a separate line-item on your bill. This surcharge may appear as “AMS”, “Advanced Meter,” or included in the “Energy Efficiency Cost Recovery Factor” (EEC). This charge is billed by your TDU through your REP.
The Energy Efficiency Cost Recovery Factor (EEC) charge is assessed to recover costs for energy efficiency programs from the TDU. EEC charges are approved by the Public Utility Commission of Texas.
TDU/TDSP Delivery Charges are the fees to deliver electricity to a customer and maintain the utility’s infrastructure including power lines, power poles, etc. In Texas electricity, this fee is assessed by the TDSP and billed by your REP.
The Nuclear Decommission Fee covers the cost of safely closing and removing a nuclear generation facility from service. Only local utilities or transmission and distribution companies can assess the fee to its customers.
A Customer Charge on your Texas electricity invoice is a flat fee applied each month regardless of the amount of kilowatt (kWh) used. The Customer Charge is similar to a Base Charge.
Insufficient Funds Fee is a banking term for the charge billed due to making a promise to pay (by check) without enough money in the account from which the check was drawn.
In Texas electricity, may Retail Electric Providers have rate plans that have a charge for customers that don’t meet a minimum usage requirement. These fees may vary based on the current electricity contract you’re enrolled in.
Early Termination Fees are the charges for terminating an electricity supply contract with your REP prior to the end date.
Your Texas electricity bill may show a different kWh rate each month if you are enrolled in a variable rate plan. Variable rates change the kWh rate you are billed each month. Details of your electricity rates will be in your Electricity Facts Label and Terms of Service.
The Public Utility Commission Gross Receipts Assessment fee is assessed to recover the costs of administering the Public Utility Regulatory Act (PUCA). The PUCA fee is currently set to .1667 percent of a customer’s total Texas electricity bill for the given billing cycle, before sales tax.
Texas Electricity Rate Plans/Types
There are several factors that impact electricity prices in Texas. Texas electricity rates change based on usage, contract term, rate type, location, reward program, the percentage of renewable energy, and more. Radiant Energy takes the guess work out of electricity rates and finds you the lowest rates and most favorable contract terms that fit your needs.
A fixed rate for electricity is a set rate per kilowatt-hour through the term of your contract. Texas electricity fixed rates vary by retail provider. There’s several factors that go into the price of electricity. Each retail provider includes different variables of the electricity cost in its fixed rate.
Market Rate or Index Rate
Some retail electric providers in Texas call this rate a Market Rate or Index Rate. Market rates are like variable rates in that the price per kWh can change each month. The difference is that Market Rates are calculated based on a specific formula that is tied to a publicly available index.
Texas electricity customers may be required to pay a deposit to establish service. Retail electric providers may run credit checks and/or require deposits for most electricity rate plans. Each retail electric provider has different credit requirements for electricity service.
Texas electricity customers can choose contract lengths from as short as one month, up to five years or longer in some cases. Retail electric providers in Texas require contracts for fixed rates, market rates, prepaid or budget billing plans, renewable energy plans, and others.
Renewable Energy or Clean Energy
Texas electricity customers can choose renewable energy, green energy or clean energy rate plans. All retail electric providers in Texas are required to include a small percentage of renewable power in their portfolio. Not every retail electric provider offers renewable energy plans.
Variable Rate or Changing Rate
Variable Rates are electricity rates that change each month. With a variable rate, the price per kWh changes each billing cycle. There is no contract for a variable rate plan unlike a market rate plan where there may be a contract required.
Pre-Paid Rate or Budget Billing
Prepaid Texas electricity rate plans provide electric service on a pay-as-you-go basis. The prepaid rate plan is like cable or cell phone service, where electricity is paid the month before services. Most retail electric providers calculate the prepaid amount with historical data for your location.
Time of Use
Texas electricity costs change every 15 minutes in the open market. The more expensive time periods for Texas electricity are called peak demand periods. Some retail electric providers offer discounts to consumers that use less electricity during peak periods.
Power to Choose is a consumer tool developed by the Public Utility Commission of Texas (PUCT). The Power to Choose website compares retail electric providers prices, rate plans, and company ratings. The Public Utility Commission of Texas created the tool to help Texas electricity customers find rate plans and sign up for electric service.
Unfortunately for the consumer, there are so many rates, options and retail electric providers to choose from that finding the best choice can be difficult. Retail electric providers have become very creative with the product offerings on Power to Choose and it’s misleading to the customer. Texas electricity companies advertise low rates that don’t include the total charges that make up the actual kWh rate. Customers look to Power to Choose as the trusted site for consumer certainty of Texas electricity but ultimately pay the price.
Radiant Energy is an independent energy services company with the goal of providing customers the most profitable energy solutions. We develop tailored energy strategies that align with your needs. Our mission is to deliver transparent and financially sensible energy solutions to our clients. Radiant Energy offers a free, no-hassle, no-obligation, consultation to help guide you to finding long-term energy savings.
We leverage our customer portfolio and industry relationships to negotiate lower electricity rates and more favorable contract terms than a customer can alone. Our services are performance-based, so we only get paid if we save you money.
Electricity Rates in Texas by City
Texas electricity rates vary by location. Choose your city below to find electricity prices in your area. Understanding the various electricity rates and contracts can be costly. Radiant Energy is here to help. Contact us today for a free consultation and start saving today! Learn more about Texas electricity with these fun facts!
Texas Zip Codes