Read Your Texas Electricity Bill, Line by Line

Last updated: October 18, 2026  ·  8 min read

Your Texas electricity bill carries information from at least three parties: the retail provider that sends it, the TDU that delivered the power, and the state of Texas through PUC assessments and sales tax. The result looks more complicated than it is. Every line falls into one of a handful of categories, and once you can read them, you can spot a mistake — and there are mistakes. Bill credits that didn't apply. Free-nights hours billed at the wrong rate. Estimated reads that overshoot. Here's how to verify everything.

The Header — Account and Service Period

The top of any Texas bill shows your account number, service address, meter number, and the dates of the current billing cycle. The service period is the most important field because billing cycles aren't always 30 days — they vary between roughly 28 and 33 days. A long cycle and a short cycle at the same average daily usage produce different bills. The bill should also show your plan name and the contract end date for fixed-rate plans.

The Usage Summary

Below the header sits the usage summary: the previous meter read, the current meter read, the difference (your kWh consumed), and often a comparison bar against the prior month and the same month a year ago. Smart meters in Texas record at 15-minute intervals, so the meter reads on the bill are nearly always actual rather than estimated. The year-over-year comparison is worth checking — an unexplained jump that doesn't match weather changes can indicate a malfunctioning appliance or a meter issue.

The Energy Charge Block

This is the section that varies by plan. For a flat fixed-rate plan, it's one line: kWh used × per-kWh rate = energy charge. For a tiered plan, multiple lines show each tier separately. For a bill-credit plan, the credit appears as a negative line — if your usage triggered it.

Free-nights and time-of-use plans show two or more rate lines, one for each period. The bill should clearly identify which hours fall into which rate class. If the bill shows the wrong hours or applies the wrong rate to a period, that's the most common dispute scenario on TOU plans.

The TDU Delivery Block

This section comes from your TDU — Oncor, CenterPoint, AEP Texas, or TNMP — and is identical regardless of which REP you use. It contains a fixed monthly customer charge, a per-kWh delivery charge, and one or more small riders like the Transmission Cost Recovery Factor and the Energy Efficiency Cost Recovery Factor. The total usually runs $40 to $80 for a household consuming 1,000 to 1,500 kWh.

If your plan is "all-inclusive" — meaning the EFL bundles TDU charges into the per-kWh energy rate — these lines may be folded into the energy charge block instead of shown separately. The PUCT requires the EFL to disclose which approach the plan uses. TDU delivery charges, fully explained covers this layer in depth.

Taxes and Fees

Line Item	What It Is	Typical Amount
State Sales Tax	6.25% of taxable charges	$5 – $12
Local Sales Tax	0% – 2% depending on city	$0 – $4
PUC Assessment	$0.000463 per kWh, statewide	~$0.50
Gross Receipts Reimbursement	Pass-through of state gross receipts tax	~1.5% – 2% of bill

Some city jurisdictions add a small franchise fee for the utility's use of street rights-of-way; this usually appears in the TDU section rather than as a tax. Many Texas cities (including Houston and Dallas) exempt residential electricity from local sales tax — check your bill against your city's policy if you suspect over-collection.

Past-Due, Late Fee, and Reconnection Lines

If you carried a balance from the prior cycle, a "previous balance" line appears at the top of the bill. A late fee — typically 5% of the past-due amount — applies if the prior bill went unpaid past the due date. Texas rules cap late fees and prohibit them on the first late payment in a 12-month period for low-income customers in certain assistance programs. If a late fee appears that you believe is incorrect, the dispute path runs through your REP\'s customer service first.

The Plan Information Footer

The bottom of the bill often summarizes your plan: current rate at 500, 1,000, and 2,000 kWh; contract end date; and the early termination fee if applicable. This is the section to compare against your original EFL. If the rates listed differ from the EFL you signed, the bill is wrong and the REP must correct it. You can request the original EFL from your REP at any time during the contract.

How to Verify Your Bill in 60 Seconds

A three-step check catches almost every billing error.

The Texas-Specific Bottom Line

Every Texas electricity bill resolves into three layers: the REP's energy charge, the TDU's delivery charge, and taxes plus assessments. The energy charge is the layer that varies by plan choice. The delivery charge is fixed by ZIP and TDU. The tax and assessment layer is mostly state-set. Reading the bill methodically against the original EFL is the highest-confidence way to catch errors. The most common errors are bill credits failing to apply when usage was in range, followed by mispriced free-nights hours.

Common Questions Texans Ask

Why does my Texas electricity bill list two different companies?

Because Texas separated retail service from delivery service in 2002. Your retail electric provider (REP) sells you the plan and sends the bill. Your transmission and distribution utility (TDU) physically delivers the power. The bill shows both, but only the REP collects payment from you.

What's the difference between the energy charge and the delivery charge?

The energy charge is what you pay your REP per kWh consumed. The delivery charge is the regulated fee your TDU collects to move that electricity over poles, wires, and your meter. Both appear on the bill, both are calculated per kWh, and the delivery charge is identical regardless of which REP you choose.

What is the PUC Assessment fee on my bill?

The PUC Assessment is a small statewide fee — about $0.000463 per kWh — that funds the Public Utility Commission of Texas. It appears on every Texas electricity bill and is set by state statute. For a 1,000 kWh bill it works out to about 46 cents.

Why was my bill higher than last month even though I used less?

Several possibilities. Your plan may have a minimum-usage fee that triggered because you fell below the threshold. TDU charges may have updated at the March or September adjustment. You may have crossed below a bill-credit threshold and lost the credit. Or a bill cycle longer than 30 days (it varies between 28 and 33) can push the total higher.

What is an "estimated" reading on my bill?

An estimated reading means your TDU could not retrieve actual data from your smart meter for that cycle and used an estimate based on prior usage. Smart meters in Texas almost always report successfully, so estimated reads are rare. If you see one, you can request a re-read from your TDU at no charge — the next bill will reconcile any difference.

How much tax is on a Texas electricity bill?

Texas charges 6.25% state sales tax on residential electricity in most jurisdictions, plus local sales tax of up to 2% in many cities. Some cities exempt residential electricity from local tax. Texas also has a "miscellaneous gross receipts" charge that most providers list separately, usually as 1.5% to 2% of the bill.

What if my bill is wrong — what's the dispute process?

Start with your REP's customer service. If they can't resolve it within 30 days or you disagree with their answer, file a complaint with the Public Utility Commission of Texas at puc.texas.gov. The PUCT runs a free consumer complaint process and will mediate between you and the REP.

What's an "early termination fee" and when does it apply?

The early termination fee (ETF) is a one-time charge — usually $50 to $295 — that applies if you cancel a fixed-rate contract before its end date. The ETF must be disclosed on the EFL at signup. It's waived if you switch within 14 days of the contract end date or if you move out of the service area.

Key Billing Terms — Glossary

Definitions for every line item on a Texas electricity bill:

TDU Charge · kWh · EFL · Bill Credit · Minimum Usage Fee · Effective Rate · All Billing Terms →

Your Next Move

If your bill looks higher than expected, the next read is why is my Texas electricity bill so high. To go deeper on the TDU side of the bill, see Texas TDU delivery charges, fully explained. To compare your current plan against the cheapest plan available in your ZIP today, run a search on the homepage — if a cheaper plan exists and you're within 14 days of your contract end, you can switch without an early termination fee.