The best energy plan for your home

Base Charges on Texas Electric Bills

Texas bills have two places you might see a “base” or “fixed” charge: one from your Retail Electric Provider (REP) on the energy side of the bill, and one from your utility (TDU) on the delivery side. Here’s how each works and how they affect your total cost.

1) Energy‑Side Base Charge (from your REP)

This is a flat monthly fee charged by your electricity provider, separate from your per‑kWh energy rate.

What it covers: account administration, billing systems, customer care, and general operations.
Plan variations: some plans waive it after a usage threshold; others combine it with a minimum‑usage fee.
Not delivery: this is different from TDU delivery charges and is set by the REP as part of the plan design.
Shopping tip: a higher base fee may come with a lower per‑kWh rate—compare the all‑in cost at your usage.

2) Delivery‑Side Fixed Charges (from your TDU)

Your Transmission & Distribution Utility (TDU) maintains the poles, wires, meters, and substations. Delivery charges are regulated and generally passed through without markup.

What it funds: grid infrastructure, metering, emergency response, field crews, and modernization.
Fixed + variable: many TDUs use a fixed monthly fee plus per‑kWh delivery charges.
Regulated rates: set by state regulators; they’re the same regardless of which REP you choose.
Who’s my TDU? In ERCOT areas this is often Oncor, CenterPoint, AEP Texas, TNMP, or LP&L.

Feature	Energy‑Side (REP)	Delivery‑Side (TDU)
Who sets it?	Retail Electric Provider	State‑regulated utility
Typical form	Flat monthly base fee; may be waived at certain usage	Fixed monthly fee + per‑kWh delivery charges
What it covers	Admin, billing, support, operations	Poles/wires, substations, metering, storm response
Markup?	Part of plan pricing	Pass‑through without markup
Can I avoid it?	Some plans have no base fee or waive it with usage	No—delivery is required to receive power

How it appears on your bill

You’ll usually see separate sections for supply (energy) and delivery. A simple way to think about your total:

Total ≈ REP base fee
      + (Your kWh × Energy rate)
      + TDU fixed fee
      + (Your kWh × TDU per‑kWh delivery)
      + Taxes & government fees

Smart shopping checklist

Compare the plan’s base fee and the energy rate at your actual usage (500/1000/2000 kWh examples help).
Watch for minimum‑usage rules or credits that change the math at low or high usage.
Confirm your TDU delivery charges; they’re regulated and passed through by every REP.
Read the plan’s EFL (Electricity Facts Label) for all fees and conditions.

Learn more

Consumer resources from the Public Utility Commission of Texas (PUCT):