Understanding Your Electricity Bill: A Breakdown
Your electricity bill has two main components you can actually control: how much electricity you use, and what you pay per kWh. Everything else, delivery charges, taxes, and fees, is set by your utility and is the same regardless of which provider you choose. Here's what each line item means and where your real savings opportunity is
| Line item |
Who sets it |
Can you change it? |
| Energy charge Cost per kWh you use |
Your electricity provider |
Yes — by switching providers |
| Delivery charge (TDSP/TDU) Cost to move power to your home |
Your local utility (Oncor, CenterPoint, etc.) |
No — same regardless of provider |
| Taxes & fees State, local, regulatory |
State/local government |
No |
| Base/customer fee Flat monthly charge |
Your electricity provider |
Yes — by switching providers |
Key Sections of Your Electricity Bill
1. Account Information
This section includes your account number, billing period, and due date. It’s essential to review this information to ensure your bill is accurate and paid on time.
2. What Is the Energy Charge on My Bill?
Your bill will display the total kilowatt-hours (kWh) consumed during the billing period. Some utilities also include a usage graph to help you compare your energy consumption month over month.
3. What Is A Base/Customer Fee?
A flat monthly fee charged by some plans use to cover administrative and service costs.
4. What Are TDSP/TDU or Delivery Charges?
These charges are from your local utility company and cover the cost of maintaining power lines, transformers, and infrastructure needed to deliver electricity to your home. These fees remain consistent regardless of your energy provider.
Switching electricity providers in Texas only changes your energy charge. Your lights don't go out, your utility doesn't change, and the switch takes about 10 minutes.
5. Taxes and Additional Fees
Different states and utilities may have specific taxes or regulatory fees. Be sure to review this section to understand all applicable charges on your bill.
How to Lower Your Electricity Bill
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If your energy charge feels high, that's the one line item you can change today. APG&E offers fixed-rate plans with transparent pricing and no hidden fees.
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Monitor Your Usage: Smart meters and utility apps can help track real-time electricity consumption.
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Energy Efficiency Upgrades: Switching to LED lighting, upgrading insulation, and using ENERGY STAR appliances can reduce energy waste.
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Time-of-Use Awareness: In some areas, electricity costs vary based on peak vs. off-peak hours. Adjusting usage to off-peak times can lead to savings.
Final Thoughts
By understanding the details of your electricity bill, you can take better control of your energy usage and expenses. If you have questions about your bill or need assistance finding a better plan, don’t hesitate to reach out to your electricity provider.
