When looking at your power bill, there are line items that might seem confusing or unclear. Electricity bills often include tons of information for you to review, some of which might be hard to fully understand. Here are a few tips that might help you to better understand what's on your billing statement:
1. See what rate plan you're on - some energy companies offer different rate plan structures that might affect what you pay for electricity each month. If you're not sure, contact your electricity company.
2. Understand how much electricity you use - electricity use is measured in kilowatt hours (kWh), which is the standard for measuring the amount of electricity consumed over time. Understanding your electricity use will give you a better idea of what type of solar installation you'll need to power residential or commercial buildings.
3. Understand why your bill might be different every month - depending on your electricity plan, your electricity bills might vary somewhat significantly from month to month. There are a number factors that go in your individual electricity use, including appliance usage, changes in behavior, and seasonal weather changes. In Texas, electricity use is typically highest in summer months when homes use more electricity to power air conditioners. In some parts of the state, colder winter weather also leads to higher electricity usage to help power home heating appliances.
4. Look at how many days are in your billing cycle - sometimes the number of days in a billing cycle will vary. A bill that only includes 28 days will likely be less than a bill that includes 32 days.
5. Look at the other fees that make up your bill's final price - there are several charges that go into your energy bill. Your payment is not only for the electricity you consume, but also for helping the utility maintain the grid and pay the salaries of its workers. Look for charges related to supply, delivery, taxes and fees on your bills to make sure you understand exactly how much you’re paying for each line item. If you live in the Texas CEM, you may be able to shop around for another REP that can provide you with the power you need at a more competitive price. Utilizing solar may also help you to avoid some of these monthly charges.
6. Calculate your average monthly charge - since your electricity bill may differ from month to month, it's helpful to understand what your average monthly payment is for electricity. This number will help you to understand how solar might help to reduce your electricity charges.
This is an example of the type of a residential power bill that customers receive in the Texas CEM. This power bill is from Reliant Energy, one of the largest REPs in Texas. Each area of the bill is explained below using the corresponding numbers listed on the bill.
Please note that your electricity bill may look different than what is displayed here. This example is only to explain some of the common charges and information found on electricity bills in Texas. If you are a commercial power user, your bill information may have different components.
1. Account information - this area typically includes information specific to you, such as your name, contact information, account number, and the number of the invoice.
2. Account Summary - this area gives you an overview of your current account charges. It displays any outstanding or unpaid charges, your current charges, the billing period (the period for which you're being charged), and when your bill is due.
3. Electricity Usage Summary - this area gives you an overview of the electricity you used during your billing period. It includes the number of days in the billing period, the amount of electricity used in kilowatt-hours (kWh), and average daily usage in kWh.
4. Customer Service - this area provides important contact information for your electricity company.
5. Region - this area explains what electricity service region you are located in.
6. Community Assistance - on some electricity bills, companies provide the option to provide a donation for community assistance or other charitable causes.
7. Service Address - the address at which you receive electricity service
8. ESI ID - your Electric Service Identifier, or ESI ID, is a unique number that corresponds to your electricity service address in Texas.
9. Current Electricity Charges Detail - this area outlines the amount of electricity you use, the rates per kilowatt-hour (kWh) you pay for electricity, and any additional fees your service provider may charge. In this example, the customer paid around $0.055 for their first 500 kWh, around $0.081 for the next 500 kWh they consumed, and around $0.062 for the remaining 41 kWh they consumed during the billing cycle. Depending on how much electricity you use, you may be charged at different price tiers. As you can also see, Reliant charged this customer $91.74 for the fuel needed to generate their electricity.
Other bills may include additional fees, not limited to but including:
Base charges - a monthly charge assessed for maintaining an account with the REP
Energy delivery/transmission distribution charges - the costs associated with delivering electricity to your home
Meter charges - costs that may be incurred from meter maintenance or repair
The fees you pay depend on your service area and what REP you receive electricity from.
10. Electric Usage Detail - this area details the number read on your meter at the end of your billing cycle, the number read at the end of the previous billing cycle, and the difference between the two. The difference is the amount of electricity you consumed during the most recent billing cycle, which in this example is 1,041 kWh.
If you are a commercial power user, you may also experience demand charges. A demand charge is one of the primary charges assessed by your local transmission and distribution provider (TDSP) for the delivery of electricity to your business. Like all TDSP charges, the demand charge is set by the Public Utility Commission of Texas (PUCT) and is combined with other TDSP charges. Depending on your power usage, you may also be eligible for different electricity plans with different electricity rates.
If you'd like more information on how to understand your power bill and electricity usage, check out Powered for Good's Resources for Residential Energy Users.
