Many times the electricity rate published by REPs seem too good to be true. That’s because the rate is for the the electricity usage only; delivery charges are in the fine print. Delivery charges are state approved tariffs that Transmission and Distribution Utilities (TDUs) charge to pay for the wires and equipment used to deliver electricity.

In the highly competitive environment of electricity, REPs sometimes leave the delivery charges out so their rate appears lower. To know the real rate you will pay, you must add in the delivery charges. For example, Oncor charges $5.25 plus 3.2¢ per kWh. So if the REP says they charge 5.7¢ and Oncor charges 3.2¢, the total you pay for usage is 8.9¢ per kWh plus $5.25.

Email [email protected] with other questions about your electricity bill.