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855-475-8315When your Texas power bill arrives, what do you do? Many people only look at the amount due and pay it without a second thought (unless they notice that the total is significantly higher than the month before). Understanding your electricity bill and the charges on your bill can save you from overpaying for electricity. Don’t wait too long when you start seeing significant changes in the amount, you’re charged on your electricity bill. You pay for your electricity after an estimated 30 days of use and won’t be able to make changes to what’s been consumed. Don’t wait another month before taking action!
Table of Contents
Why is my electricity bill so high?
Your Texas power bill breakdown
Frequently asked questions about electric bills
Where can you find consistent electricity prices in Texas?
Why is my electricity bill so high?
The are many reasons that can contribute to a higher than usual electricity bill. One reason for a higher than usual electricity bill is, you are using more electricity due to hotter outside temperature. Your air conditioner must run longer to keep the inside cool as temperatures rise outside. Additionally, you may have been on a fixed rate plan that just expired and have now fallen onto a variable month-to month electricity plan. Your electricity provider can increase your energy rate month over month if you don’t take action and sign up on a new usually lower contract term. The most common electricity contract terms are 12 or 24 months long term.
In Texas the electricity market is deregulated and there are more than 40 different electricity providers to choose from that offers hundreds of different electricity plans. Taking a closer look at your electricity bill and comparing electricity rates could save you a significant amount of money every year.
Shopping through hundreds of electricity plans to find the best plan for you can be time consuming. Let us protects you from gimmicks, fine print gotchas, and bad deals. From electricity shopping to enrollment and renewals, Power Wizard handles it at. For more information on Power Wizard’s energy management service and member benefits, visit www.powerwizard.com.
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Your Texas power bill breakdown
Take a closer look at your Texas electricity bill also called power bill — whether you receive a paper statement or e-bill — you’ll notice that there’s a bit more to it than just the amount you owe for your electricity usage. In addition to your consumption for the month, you’ll find several different charges that make up the total amount due. Let’s take a closer look.
Base charges
Many retail energy providers include a recurring base charge on their monthly bills. This flat fee stays the same regardless of your energy consumption for the month. It is a general charge to cover administrative costs, such as billing and providing customer service. Not every electricity provider is passing this cost on to the customers and it is important to read the fine print when signing up for an electric plan.
Energy charge from retail energy providers
The energy charge makes up most of your power bill in Texas. It reflects the cost of the electricity you used during the month, which your energy provider calculates using your plan’s rate.
If you have a fixed-rate plan, your price per kilowatt-hour will remain the same month over month for the duration of your contract. With a variable-rate plan, that price can change from one billing cycle (month) to the next. Another type of plan to look out for is the free nights and weekends or a time-of-use plan. These plans typically come with a higher rate per kWh during the day when you use the most electricity. Those plans usually never work in your favor and only the electricity companies benefit from it.
As mentioned earlier in this article, there are hundreds of different electricity plans to choose from. It can take hours or days to find the best plan that fits your electricity usage. Don’t always look for the lowest rate advertised. When shopping for electricity with Power Wizard, we know how to spot these types of plans and whether or not they will benefit you.
Utility distribution and delivery charges
The distribution and delivery charges also called TDU, is a charge that your Utility (CenterPoint, Oncor, or AEP) charges to deliver the electricity to your home. You’ll pay the same rate as every other household in your distribution company’s area, regardless of your chosen retail energy provider.
Note: Your TDU charges are subject to change, even if you have a fixed-rate plan. Generally, you’ll see them adjusted in March and up in September. If you have any questions about these charges on your bill, your energy provider should be able to give you more details.
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Frequently asked questions about electric bills
There’s a lot that goes into your Texas power bill. And even after you figure out how to read your electric bill, you might still have questions when it comes to the fine print. Here, we’ll provide a few answers to some of the most frequently asked questions Texans have about their electric bills:
Will your bill reflect power outages in your area?
Storms and power outages can impact wholesale electricity rates, but whether or not those changes affect you will depend on your energy plan. If you have a fixed-rate plan, you locked in your electricity rate when you signed up with your energy provider. No matter how much market rates change, yours will stay the same.
Note: You might pay the same rate for electricity, but you may see some effects of a power outage reflected in your bill. For instance, if you lose power for a few days in winter, your heater may have to work harder to bring your home’s temperature up to a comfortable level again. Using more kilowatt-hours means your electric bill will likely be a bit higher.
If you have a variable-rate or indexed-rate plan, your month-to-month energy prices can change based on what happens to wholesale rates. In other words, if a storm triggers a significant increase in wholesale rates, your rate per kilowatt-hour will follow suit. This means you could end up with an unexpectedly high Texas power bill, especially if you didn’t know you were on a variable-rate energy plan.
How can customers dispute charges?
No matter what type of energy plan you have, you should always look for unusual charges on your electric bill. While you should be extra vigilant after a storm or power outage, examining your statements every month can help you spot when something looks out of the ordinary.
If you do come across charges on your bill that you don’t think should be there, such as increased taxes/fees or price per kWh, your first step should be to contact your retail energy provider. If your energy provider can’t resolve your dispute, you should reach out to the Public Utility Commission of Texas customer hotline at 1-888-PUC-TIPS (1-888-782-8477).
How can I tell if I am under contract?
Fixed-rate energy plans usually require you to agree to a contract with your electricity provider. That contract shows you agree to remain their customer in exchange for paying a fixed rate per kilowatt-hour for a set timeframe — generally a few months up to five years.
Here’s the thing, though. Energy providers are required to switch their customers to variable-rate plans when their contracts end. In other words, if you don’t sign a new contract when your current one ends, you will be on a variable-rate plan without you knowing it.
One way to know if you’re under a contract with your energy provider is to contact them directly. You can also check your most recent electric bill for the contract expiration date.
Note: If you are under contract, your retail energy provider must send you a renewal offer at least 15 days before the end of your term. Some may send this notice 60 to 90 days before your contract expires. You can choose to renew or shop for a new plan with a different retail electric provider. If you do nothing, your current provider will switch you to a variable-rate plan.
Even if you think your current energy provider’s renewal offer is a good deal, you should still consider shopping around to see if you can get a better rate elsewhere. Power Wizard can make that process a breeze. Within seconds the algorithm will provide you with the best rates and plans, allowing you to compare your top options and select the best one for you.
Where can you find consistent electricity prices in Texas?
If you’re looking for more consistency with your electricity prices, a fixed-rate plan offers one of the best solutions. However, not all fixed-rate plans are the same. Comparing your options will help ensure that you get the best deal. Power Wizard energy experts know how to spot the gimmicks, fine print gotchas, and bad deals when it comes to Texas electricity bills.
Are you having trouble navigating your energy plan options? That’s where Power Wizard comes in. Our technology filters through and compares hundreds of plans in seconds, eliminating the hassle of you having to do it yourself. From shopping and enrollment to plan renewal, we handle it all.
If you’re ready to find a plan that provides more consistent electricity prices and bills, enter your zip code below to get started!
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